Abstract:
Micro, small, and medium enterprises (MSMEs) play a significant role in economic growth
and development in Indonesia as well as in other countries globally. Indonesia strives to be a
welfare state that promotes public–private partnership and efficacy of MSMEs. A country
implementing a welfare state system must implement policies oriented towards service, charity,
protection and prevention. The objective of this study is to determine the role of the state in
implementing regulation that enhances MSME welfare and to analyse the implementation of
economic democracy using partnership patterns. The researcher conducted an analysis of the
secondary literature and a library search focusing on open sources such as books, peerreviewed journal articles and newspaper articles. The state usually plays a critical role in
welfare achievement by enacting laws that create an operating environment and legal
framework conducive to MSMEs, thus leading to the creation of a thriving economy. The
proposed Partnership Pattern Program would foster partnerships between MSMEs and large
multinational corporations (MNCs). It is also amiddle-ground solution between the state’s
obligations to provide welfare to the general public, the MSME sector and economic/trade
liberalisation from the global market.
