<![CDATA[Micro, Small, and Medium Enterprises face acute structural vulnerabilities because rigid formal positivism and the Online Single Submission regime under Government Regulation Number 28 of 2025 fail to provide effective preventive legal protections. This study employed an empirical legal methodology, examining statutory frameworks, philosophical doctrines, and administrative friction. The findings reveal that nationwide licensing simplification, when divorced from local preventive architecture, generates severe legal uncertainties and penalizes grassroots enterprises under automated compliance mechanisms. Consequently, substantive justice is compromised for procedural fetishism. To resolve this pathological gap, this research argues that local government discretionary authority must be actively operationalized as an instrument of social engineering. Grounded in Mochtar Kusumaatmadja’s Theory of Development Law, proactive administrative safeguards and accountable local policies bridge regulatory vacuums, transforming the legal framework from a punitive instrument into a sustainable infrastructure empowering grassroots economic competitiveness within the national digital economic transformation era of modern legal governance systems.]]>
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