Definition of MSMEs Law Number 20 of 2008 on Micro Small and Medium Enterprises

Definition of msmes law number 20 of 2008 on micro

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Definition of MSMEs. Law Number 20 of 2008 on Micro, Small and Medium Enterprises (MSMEs) defines MSMEs based on certain criteria, namely: Micro Enterprise is productive business owned by individual and/or individual business entity which meets the criteria of Micro Business as regulated in this Law. Small enterprise is a stand-alone productive economic enterprise undertaken by an individual or a business entity that is not a subsidiary or not a branch of a company which owned, controlled or constituted either directly or indirectly by a medium-sized or large-scale business that meets the criteria of a small business in this Law. Medium enterprise is a stand-alone productive economic enterprise, carried out by an individual or business entity which is not a subsidiary or a branch of a company that owned, controlled or otherwise part of either directly or indirectly by a small or large enterprise with net worth or annual gross sales as stipulated in this Law. The criteria of MSMEs by total assets and turnover in accordance with Law Number 20 of 2008: Table 1 – The criteria of MSMEs by total assets and turnover Description Criteria Assets Turnover Micro Enterprise Maximum of 50 million Maximum of 300 million Small Enterprise More than 50-500 million More than 300 million-2.5 billion Medium Enterprise More than 500 million-10 billion More than 2.5 billion-50 billion Source: Law Number 20 of 2008. Creative Industry. Creative industry is defined as an industry derived from the utilization of creativity, skills and individual talents to create prosperity and employment by generating and empowering the creative power of the individual (Ministry of Industry and Trade, 2007). The creative industry cited in Saksono (2012) is part of the creative economy, where the
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RJOAS, 1(73), January 2018 68 creative economy is a system of transactions (supply and demand) which has a broader understanding than the creative industry. United Nations Conference on Trade and Development (UNCTAD) in "Creative Economy Report 2010" (2010) defined creative economy as “The “creative economy” is an evolving concept based on creative assets potentially generating economic growth and development. It can foster income generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development. It embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives. It is a set of knowledge based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy. It is a feasible development option calling for innovative, multidisciplinary policy responses and interministerial action. At the heart of the creative economy are the creative industries.” The Government of Indonesia officially launched the Creative Economy Program (Presidential Instruction Number 6 of 2009 on Creative Economy Development) which must be implemented by several ministries/agencies and all local governments (provinces and regencies/municipalities). The President also proclaimed 2009 as "
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