UMKM Holding Regulations to Mimic Food Estate Program

Regulation of the Minister on Micro-, Small-, and Medium-Scale Enterprises (“UMKM”) is being drafted to support the UMKM holding program. The Ministry is currently designing regulations related to the implementation of the program.

"Discussions are still ongoing. It has only been discussed a few times. But this holding regulation is more about how the program can be implemented," said Fitri Rinaldi, Assistant Deputy for Medium-Scale Enterprises at the Ministry of UMKM, to Hukumonline.

Fitri explained that the new regulation will follow the regulations in the food estate program developed by the Ministry of Agriculture. Fitri believes that the program has comprehensive regulations, starting from the articles in the regulation that serve as technical guidelines for all stakeholders.

According to him, a similar regulatory model needs to be applied in the UMKM holding regulations because it not only involves the Ministry of UMKM but also has a cross-sectoral nature. This includes involving regional governments and other stakeholders. Therefore, a uniform guideline from the central to the regional level is needed in the draft regulations.