The Fairness Principle in Regulation Regarding Sole Proprietorship: How it Works?

I Made Tegar Dewanta; Suatra Putrawan

doi:10.31941/pj.v22i1.4041

Authors

I Made Tegar Dewanta Faculty of Law, Udayana University, Indonesia
Suatra Putrawan Faculty of Law, Udayana University, Indonesia

DOI:

https://doi.org/10.31941/pj.v22i1.4041

Abstract

The formation of a Sole Proprietorship for Micro and Small Enterprises (MSEs) is one of the legal policies of the Job Creation Law, which is then followed up in the government regulations on Individual Companies for MSEs, which in concept paradigm changes the conception of a Limited Liability Company which was initially a stock partnership into a legal entity that can be formed due to a share partnership or partnership. This study explores the fairness principle concerning the legal policy of establishing a Limited Liability Company for MSEs in Indonesia through the Job Creation Law and its derivative regulations. This research is normative legal research. The results of the study confirm that the existence of MSEs in the Employment Creation Act and the PP for Individual Companies for MSEs is more substantial because in addition to obtaining legal certainty guarantees through the form of corporate legal entities, they also have the orientation of various legal protections that accompany them. That is related to the state's efforts to facilitate MSEs so that they can be empowered and become an effort to increase competitiveness in the business sector. In addition, the fairness principle in the regulation regarding individual companies has been correct as formulated in the Job Creation Law and its implementing regulations. It is also necessary to improve the legislators' efforts, especially when the job creation law is still unconstitutional, with conditions to further emphasize the fairness principle in establishing a sole proprietorship for MSEs

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