Ministry Prepares Regulation on UMKM Holding Companies

The Ministry of Micro-, Small- and Medium-Scale Enterprises (Usaha Mikro Kecil dan Menengah - “UMKM”) plans to regulate UMKM holding companies in more detail in a Ministerial Regulation (“Regulation”).

Deputy Minister for Medium Enterprises at the Ministry of UMKM Bagus Rachman stated that the completion of this regulation is the focus of the regulations currently being prepared. Bagus confirmed that the regulation is likely to be completed this year.

“Regarding the regulations on UMKM holding companies, the Regulation is currently being prepared,” Bagus told Hukumonline.

Currently, according to Bagus, medium-sized businesses that are ready to become UMKM holding operators are being identified. The identification will be followed up through interventions that will be implemented through the regulation.

In addition, the Regulation will also regulate the role of Regional Government, medium-sized business actors, provisions for mapping supply chain potential, management provisions, and financial reports to the application of digital systems.