State Responsibility for Regulation to Enhance Small Business Development

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.