Rechtsidee
Vol 11 No 2 (2023): December
Business Law

Individual Corporations in Indonesia: Fostering Economic Growth and Fairness through Simplified Business Formation
Perusahaan Perseorangan di Indonesia: Mendorong Pertumbuhan Ekonomi dan Keadilan melalui Penyederhanaan Pendirian Usaha

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  • Femmy Silaswaty Faried*,
  • Hanuring Ayu Ardhani Putri,
  • Dyah Ayu Sekar Arum,
  • Shaffanisa Alivia Az-Zahra
Femmy Silaswaty Faried
Universitas Islam Batik Surakarta, Indonesia *
Hanuring Ayu Ardhani Putri
Universitas Islam Batik Surakarta, Indonesia
Dyah Ayu Sekar Arum
Fakultas Hukum, Universitas Muhammadiyah Surakarta, Indonesia
Shaffanisa Alivia Az-Zahra
Fakultas Hukum Universitas Negeri Semarang, Indonesia

(*) Corresponding Author
DOI: https://doi.org/10.21070/jihr.v12i2.998


Picture in here are illustration from public domain image or provided by the author, as part of their works
Published December 20, 2023
Keywords
  • Economic Growth,
  • Small Entrepreneurs,
  • Business Formation,
  • Individual Corporations
How to Cite
Faried, F. S., Putri, H. A. A., Arum, D. A. S., & Az-Zahra, S. A. (2023). Individual Corporations in Indonesia: Fostering Economic Growth and Fairness through Simplified Business Formation. Rechtsidee, 11(2), 10.21070/jihr.v12i2.998. https://doi.org/10.21070/jihr.v12i2.998

Copyright (c) 2023 Femmy Silaswaty Faried, Hanuring Ayu Ardhani Putri, Dyah Ayu Sekar Arum PP, Shaffanisa Alivia Az-Zahra (Author)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

 
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Abstract

In the pursuit of an organized and conducive business environment, the Indonesian government has ratified the Job Creation Law, introducing a legal concept of Individual Corporations for small and medium-sized entrepreneurs (UMK). This normative study employs a conceptual approach through Economic Analysis of Law, using primary, secondary, and non-legal materials to analyze the implications and orientation of this policy. The research findings suggest that the implementation of Individual Corporations, requiring only one founder or shareholder for establishment, leads to ease in creation and expansion of micro-small businesses, potentially impacting the ease of doing business index positively. This policy also fosters a proportionately growing, fair national economic structure, and is expected to enhance employment opportunities. The introduction of Individual Corporations represents a significant change in Indonesia's corporate law, aligning with national goals to improve investment conditions.
Highlights:

  • Introduction of Individual Corporations requiring only one founder simplifies business formation.
  • Positive impact on the ease of doing business index and alignment with national investment goals.
  • Fosterment of a proportionate, growing, and fair economic structure, enhancing employment opportunities.

Keywords: Individual Corporations, Economic Growth, Small Entrepreneurs, Business Formation

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