p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 4 April 2024 http://jist.publikasiindonesia.id/
Doi: 10.36418/jist.xxxx. 1530
Legality of Protection of MSME Business Actors In Online
Buying and Selling Activities In The Digital Era
Wiwik Sri Widiarty
Universitas Kristen Indonesia
Email: [email protected]
*Correspondence
ABSTRACT
Keywords:
legal certainty, business
actors, MSMEs, online
buying, selling
The digital revolution has changed various aspects of life,
including the trade sector. The development of information
& communication technology (ICT) gave birth to renewable
business models, such as e-transactions in buying and
selling. However, online transaction activities in purchasing
and vending also present various challenges, one of which is
related to legal certainty for MSME business actors. This
research aims to identify legal certainty problems MSME
business actors face in online purchasing and vending. The
method used in the study is a normative juridical approach
that examines legislation. Data was collected through
literature studies related to regulations when carrying out
online buying and selling transactions, the rights of MSME
business actors, and dispute resolution mechanisms. The
data analysis method employed in this study is a qualitative
analysis using deductive approaches. The research results
show that legal clarity for MSME business actors involved
in the online buying and selling process in the digitalization
era is important in ensuring that trade transactions carried
out via digital platforms occur with transparency, security,
and by applicable legal Wprovisions. The law governing
online purchasing and vending is based on principles
stipulated in Article 34(1) of the 1945 Constitution. It is
embodied in Legislation No. 20 of 2008 regarding Micro,
Small, and Medium Enterprises (MSMEs). This regulation
is the basis for all legal regulations governing MSMEs to
provide adequate protection for MSME actors.
Introduction
The digital era has produced important transformations in several lifelines,
including trade. Information and communication technology (ICT) development has
given birth to a new business model, namely online trading activities. This activity is the
same as traditional trading as usual; it is only supported by internet networks on electronic
media. The form is a contract to sell or buy goods and services online (Ritonga & Yarham,
2023). With the existence of e-commerce platforms, business people can sell products or
Legality of Protection of MSME Business Actors In Online Buying and Selling Activities In The
Digital Era
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1531
services online via the Internet without being limited by geographical restrictions. This
allows consumers to make transactions more effectively and efficiently. In addition,
online buying and selling also facilitates interaction between business people and
consumers through various features such as chat, reviews, and ratings that improve the
overall shopping experience (Rahayu, Irvan, Anggraini, Wulandari, & Friyatmi, 2021).
Although buying and selling online has opened up great opportunities for MSME
businesses to expand the market and increase income, there are many obstacles, including
legal certainty. One of the main challenges is the lack of clarity in the legal framework
governing online transactions, which can confuse MSME business actors regarding
compliance and legal protection. This can be a serious obstacle for them, especially
regarding consumer protection, data security, and dispute resolution issues. Therefore,
further efforts are needed from both the government and other related parties to strengthen
a clear and adequate legal framework for online buying and selling so that MSME
business actors can operate more confidently and legally protected.
Previous research conducted by (Sukardi, Alie, Wengrum, & Dwi, 2023) confirmed
that national economic growth is one of the important roles of MSME actors. Reviewing
this crucial role, MSMEs are faced with demands to understand and master the ongoing
modernization of the digital economy. However, adequate legal protection has become
essential amid the complexity of modernizing this digital economy. In essence, the
existence of the principle of legal certainty is the most important thing for MSME actors
to be able to exercise all their rights under the law. With legal certainty, MSME businesses
can be safer, and this can encourage economic progress through the MSME sector.
Another study conducted by (Maulidah et al., 2022) stated that electronic commerce
is regulated in Indonesian law, namely in Law No. 11 of 2008 related to the ITE Law,
then revised through Law No. 19 of 2016 related to changes to Law No. 11 of 2008, along
with other relevant rules. Related to alternative solutions to problems in buying and
selling online, several alternatives can be taken, both through the litigation process in
court and through alternative dispute resolution channels outside the courtroom.
The novelty of this research is the analysis of problems using the theory of legal
certainty by Gustav Redbruc, which has never been studied before regarding legal
certainty faced by MSME business actors in buying and selling online. The findings of
this study can make a valuable contribution to improving existing regulations or
developing new rules that are more adaptive to the needs of MSME business actors in the
era of digitalization. Better regulation can increase legal certainty and support the growth
of MSMEs in the online market. This study aims to identify problems related to legal
certainty for MSME entrepreneurs in buying and selling online.
Research Methods
The research method used is a normative juridical approach through the study of
legislation. The normative juridical method is a research approach to systematically and
deeply analyze legal regulations related to the research topic. This method aims to
understand and interpret applicable laws and explore the relationship between various
Wiwik Sri Widiarty
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1532
relevant legal norms (Bintarto, 2022). The statutory approach seeks to analyze and
interpret multiple legal regulations related to the research topic systematically and in-
depth. The research data was collected through a literature study related to online
transaction regulations in buying and selling, the rights of MSME entrepreneurs, and
dispute resolution mechanisms. Data analysis is carried out through a deductive
qualitative analysis process. The collected data is then analyzed by deducing the legal
norms in regulations related to online buying and selling and linking them with the rights
of MSME business actors.
Results and Discussion
Current developments cannot ignore or avoid the role of the existence of MSMEs
because their presence is so important and contributes to the distribution of people's
income. The MSME sector is the most important part of the country's economic growth.
MSMEs are the largest organizations and have proven adaptable and survive difficult
economic times. This shows that the role of MSMEs is very significant in improving
people's welfare and their income, thus enabling people to meet their daily needs (Putri,
2020).
MSMEs are the main pillar in Indonesia's economic development because they
contribute significantly to the economy and absorb many workers. According to a press
release from the Coordinating Ministry for Economic Affairs of the Republic of
Indonesia, the MSME sector contributes 61% to the Gross Domestic Product, equivalent
to Rp9,580 trillion. It absorbs as much as 97% of the workforce. According to data from
the Ministry of Cooperatives and SMEs, the number of MSMEs in Indonesia reaches
65,500,000 units, and 99% are in the country (Coordinating Ministry for Economic
Affairs, 2023). Therefore, it is not surprising to state that MSMEs have a very significant
contribution to the Indonesian economy
MSMEs are businesses owned by individuals not included in a particular company's
branch category and have business capital that meets predetermined criteria (Lindo,
Hermawan, & Suharsono, 2023). Meanwhile, digital developments have had a major
impact on the economy, including the retail market, and affected MSMEs. So, the
obstacles experienced by MSME players include the emergence of the digital era, which
encourages online buying and selling activities. According to (Aysa, 2021), MSMEs can
compete well if they have the skills and ability to adapt to the digital environment. This
encourages business actors to innovate and align consumer habits that originally made
conventional transactions into online transactions (Seran, Siki, & Mael, 2024).
Online community activities have become increasingly inevitable, especially
because they follow government recommendations related to the pandemic in recent
years, such as implementing social or physical distancing. This has led to a shift in
consumer activity from offline to online. This shows that MSME entrepreneurs must pay
serious attention to this change (Sunarsi, 2020). In the digital age, almost all aspects of
life have become computerized, especially in buying and selling. Buying and selling
online, in fact, has the same concept as conventional trading. The transaction occurs when
Legality of Protection of MSME Business Actors In Online Buying and Selling Activities In The
Digital Era
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1533
there is an agreement regarding the goods or services offered and the agreed price. The
main difference between online and traditional buying and selling is how transactions
occur. In conventional buying and selling, parties must meet in person. In contrast, in
online buying and selling, transactions are carried out virtually over the internet without
the physical presence of the seller and buyer. The price bargaining process can be done
virtually, without the need to meet in the same place (Dirgantara, Sembiring, Fahlevy, &
Amelia, 2023).
The ease of buying and selling online allows consumers to access the products
needed without having to do additional activities, such as going to physical stores that
may be far away. In addition, buying and selling online also saves consumers' time
because there is no need to visit a physical sales place. The online purchase system greatly
impacts consumer convenience in getting the desired product, providing convenience for
business actors and consumers with new trading platforms (Kune, Maserre, Saliani, &
Putri, 2024). The Internet is the main choice for buying and selling online because of its
convenience (Dirgantara et al., 2023). Therefore, buying and selling online offers great
potential for MSME players to market their products.
However, although MSMEs have significant potential, several factors can hinder
their growth, including the difficulty in overcoming legal problems (Riananda, Evendia,
& Firmansyah, 2022). Although the ease of selling MSME products or services is
important, paying attention to legal certainty is important, especially for business actors,
to ensure stable profits. Legal certainty is a concept that refers to clarity and firmness in
the application of legal norms so that these norms can be used as guidelines by people
who are subject to these regulations. This aims to prevent the occurrence of wrong
interpretations of the law. Furthermore, legal certainty is also a guarantee that the law will
be applied, that those who have rights by the law can obtain those rights, and that legal
decisions can be implemented. Legal certainty also acts as protection for arbitrary
activities that make individuals get something expected under certain conditions.
Another opinion, Radbruch, revealed that legal clarity results from laws and
regulations. According to this view, legal norms that regulate human interaction in social
life must always be respected, even though they have no value in justice. Radbruch
believes that the law must contain three elements of identity: First, the principle of legal
clarity based on juridical considerations. Second, the principle of legal justice from a
philosophical perspective, where justice refers to equal rights for all individuals before
the court. Third is the legal expediency or utility principle, where the law must fulfill
useful purposes (Yen & Dung, 2023).
According to (Remaja, 2014), legal certainty has a very important position because
it is a fundamental legal norm such as justice and equality must be upheld in every
regulation made. This is important so that the law feels more fair and ensures the creation
of a law-orderly society. In the context of MSME business actors in the digital era, legal
clarity is vital. Legal certainty is key to ensuring that every trade transaction through
digital platforms is transparent, secure, and based on positive legal regulations. The law
on MSMEs refers to the basic principles contained in Article 34 (1) of the 1945
Wiwik Sri Widiarty
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1534
Constitution. The content is in the form of affirmation of the state's responsibility in
developing social life and security that protects all levels of society and empowers
individuals who are weak and unable to maintain their human dignity (Kusuma, 2023).
Then, this principle is implemented through Law No. 20 of 2008 related to MSMEs,
often abbreviated as the MSME Law. The law stipulates the functions and various rights
of MSME actors. These rights include empowerment and assistance in multiple aspects,
such as financing, facilities, business data, consortiums, licenses, business opportunities,
marketing, and institutional aid. Furthermore, this law regulates business growth,
financing, guarantees, and partnerships. These rights are given based on Article 3 of the
MSME Law, which encourages progress and advances small and medium enterprises
(MSMEs) to build a just and democratic national economy by the mandate of the People's
Consultative Assembly of the Republic of Indonesia.
According to (Setiawan, Santy, Fitriyani, & Huda, 2023), in consideration of the
MSME Law, it is stated that the development of MSMEs is the key to building a fair and
equitable national economy. By the mandate of the People's Consultative Assembly of
the Republic of Indonesia, MSMEs must be fostered comprehensively to increase their
role and potential in realizing economic growth, employment, and ending poverty.
Furthermore, Article 5 of the MSME Law outlines the objectives of MSME
empowerment, which are as follows: to achieve a proportional and sustainable national
economy, to promote the growth and development of MSMEs so that a strong business is
realized, to develop the contribution of MSMEs to develop their regions, the provision of
employment opportunities, community economic empowerment, increasing national
income, and reducing the unemployment rate. The MSME Law provides a strong legal
basis for MSME entrepreneurs to run their businesses.
Under the MSME Law, there are several other forms of legal protection for MSME
actors, which are the development and refinement of the basic governing regulations,
namely the Job Creation Law, which serves to maintain the country's economic stability,
facilitate job creation through efforts to simplify regulations, guarantee legal certainty,
increase access to capital for MSMEs, create a conducive investment climate, increase
bureaucratic efficiency, and increase government investment, as well as improve
coordination between agencies. In research conducted by (Setiawan et al., 2023), several
changes in the MSME Law are enhanced in the Job Creation Law, such as:
1. Ease of licensing
Chapter V Article 87 of the Job Creation Law amends the provisions of Article 12
of the MSME Law, aiming to simplify the process and various legal legalities for
businesses through one-stop services. This also includes granting waivers or waivers for
fees related to licensing for MSME actors. With this change, MSME actors get
convenience in the licensing process and simpler services, including clarity of time, cost,
security, etc. This allows MSME actors to obtain better information from the application
stage to the issuance of the required documents.
2. Financing and guarantee for MSMEs
Legality of Protection of MSME Business Actors In Online Buying and Selling Activities In The
Digital Era
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1535
The Job Creation Law stipulates obligations for the government, SOEs, and large
companies, both national and foreign, to provide various forms of financing such as
financial assistance, protection, subsidies, and venture capital. This loan source is from
the annual profit portion intended to support MSMEs. In addition, the government is also
required to provide incentives to MSMEs, including ease in the licensing process, tariff
reductions for facilities and infrastructure, and other incentives.
3. Changes to partnerships and supply chains
The Job Creation Law removes Article 25 of the MSME Law on partnerships and
adds supply networks in Article 26. It also adds new provisions that manage partner
implementation through MSME supply networks. These activities include the
management of the distribution of goods, the process of making goods and managing the
availability and supply of raw materials.
4. Cooperation between large businesses and MSMEs
The Job Creation Law revises Article 35 of the MSME Law, which prohibits large
companies that partner with MSMEs from taking over the assets or wealth of MSMEs
and medium enterprises from taking over MSME assets in partnership relationships.
5. Convenience in the form of legality
The Job Creation Law confirms that the government guarantees the efficiency of
the business license process to support MSME businesses. Article 91 of the Job Creation
Law allows business legality management online or offline by only attaching KTP and
SKU from RT. Business actors must obtain SKUs as proof of appropriate residence, and
online registration will result in electronic NIB, which includes operational licenses,
national quality standards, and halal guarantees for various types of businesses. In
addition, MSME actors are required to comply with the requirements to have licenses and
certifications. This indicates that the government provides guidelines to achieve quality
assurance and halal by what MSMEs need.
Furthermore, as a step to expand the scope of empowerment and facilities desired
by the Job Creation Law, the Government has issued two new regulations, namely PP No.
36/2021 concerning Wages and PP No. 7/2021 concerning the Convenience, Protection,
and Empowerment of Cooperatives and MSMEs. These two rules provide exceptions to
micro and small entrepreneurs regarding setting a minimum wage and providing a
minimum wage to their workers. This exemption aims to help micro and small
entrepreneurs survive and thrive, protect workers in the micro and small sectors, and
improve the competitiveness of micro and small entrepreneurs.
In PP No. 36/2021, precisely article 36, MSME entrepreneurs are given a special
exception to determine how much the minimum wage is offered. According to the
provision, Wage determination is carried out through agreement between employers and
workers; the minimum wage must be 50% above the average consumption of provincial
people, and the minimum wage must be 25% above the average provincial poverty line.
Exceptions to this rule can be granted if they meet the requirements stipulated in Articles
35 and 36 of PP No. 7/2021. These rules aim to ensure workers earn a living wage, protect
workers from low wages, and improve workers' welfare.
Wiwik Sri Widiarty
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1536
Then, in PP No.7/2021, there are regulations to ensure that MSME actors have
access to legal aid services provided by the government, in line with Articles 48 to 51.
According to Article 51 of PP No. 7/2021, the Government, both central and regional, is
responsible for:
1. Understand the legal barriers faced by MSMEs.
2. Disseminating information about legal assistance and assistance services to MSMEs.
3. Increase legal literacy for business actors.
4. Provide a budget for legal aid programs and activities for MSMEs.
5. Cooperate with related parties, such as universities and legal professional
organizations, to support MSMEs.
Developing these regulations provides legal certainty for MSME actors and helps
them run their businesses. This means that the challenges faced in the digital era will not
prevent MSMEs from obtaining the legal certainty needed to transact online. This legal
certainty allows business actors to ensure that all trade transactions they carry out through
digital platforms are transparently, legally, and legally compliant. Cooperation between
the government and MSME actors as regulated legal objects will also facilitate the
resolution of various problems that arise during MSME operations. The positive impact
of these efforts will be seen in the progress of MSMEs and a greater contribution to the
country's economy.
Conclusion
Legal clarity for MSME entrepreneurs involved in online trading activities in the
era of digitalization plays an important role. This is because legal certainty is the key to
ensuring that every trade transaction through digital platforms is carried out with
transparency, security, and compliance with the law. The legal basis for buying and
selling online refers to Article 34 (1) of the 1945 Constitution, later manifested in Law
No. 20 of 2008 related to MSMEs. This regulation is the basis for all legal regulations
governing MSMEs, aiming to provide adequate protection for MSME actors. So, with
this regulation, it is hoped that MSME business actors can carry out their business
activities more confidently and ensure that their rights and obligations are recognized and
protected by applicable law.
Legality of Protection of MSME Business Actors In Online Buying and Selling Activities In The
Digital Era
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1537
Bibliography
Aysa, Imma Rokhmatul. (2021). Challenges of Digital Transformation for Indonesia’s
Economic Progress. At-Tamwil Journal of Shariah Economic Studies, 3(2), 140–
153.
Bintarto, Muhammad Al Ikhwan. (2022). Cryptocurrency as a Digital Property in
Indonesian Law Perspective. Jurnal Penegakan Hukum Dan Keadilan, 3(2), 104–
113.
Dirgantara, M. Riyan, Sembiring, M. Ilham, Fahlevy, Reza, & Amelia, Rizqa. (2023).
Market Price Distortions in Islamic Microeconomics. Sufiya Journal of Islamic
Studies, 1(02). https://doi.org/10.22219/jcse.v4i3.29432
Kune, Debiyanti, Maserre, Hasnawati A. Dg, Saliani, Widia Adisti, & Putri, Jesica Rvani
Aulia. (2024). What is the Marketing Strategy for Red Corner Café. Journal of
Management, 3(1), 27–31.
Lindo, Arlindo Do Ceu Fatima, Hermawan, Agus, & Suharsono, Naswan. (2023). The
Efforts To Improve The Welfare of The Community Through The Utilization of
The Role of SMEs (Small and Medium Enterprises). International Journal of
Economics, Business and Innovation Research, 2(06), 80–89.
Rahayu, Sri, Irvan, Puji Ananda, Anggraini, Syafrida, Wulandari, Riri, & Friyatmi,
Friyatmi. (2021). Kajian Tentang Pemasaran Online untuk Meningkatkan
Penjualan di Anne Kamper’s Pariaman. Jurnal Pendidikan Tambusai, 5(2), 2652–
2660.
Riananda, Martha, Evendia, Malicia, & Firmansyah, Ade Arif. (2022). Legal Framework
for Development of Micro, Small and Medium Enterprises by Local Governments
as an Effort for Economic Recovery. Universitas Lampung International
Conference on Social Sciences (ULICoSS 2021), 604–613. Atlantis Press.
Ritonga, Yuyun Suhairo, & Yarham, M. (2023). Review Of Islamic Law On The Buying
And Buying Of Food By Street Vendors. Interdisciplinary Journal of Advanced
Research and Innovation, 1(1), 31–35.
Seran, Marisa Susanty Bette, Siki, Marsela, & Mael, Medan Yonathan. (2024).
Optimizing the Role of Micro, Small, and Medium Enterprises in Improving the
Welfare of Napan Rural Communities in Indonesia. Wedya: Journal of
Multidisciplinary, 1(1), 37–43.
Setiawan, Hery, Santy, Yuyu Jahratu Noor, Fitriyani, Zenita Afifah, & Huda, Khasbulloh.
(2023). Digital Technology Mediates Business Strategies And Job Creation Law
To Msme Performance In The Culinary Sector. Jurnal Ilmiah Manajemen,
Ekonomi, & Akuntansi (MEA), 7(3), 1842–1859.
Sukardi, Dina Haryati, Alie, Maria Septijantini, Wengrum, Tyas Desita, & Dwi, Puput.
Wiwik Sri Widiarty
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1538
(2023). Modernization of Agreement Legal Renewal in The Digital Convergence
Dimension. Proceedings of the International Conference on “Changing of Law:
Business Law, Local Wisdom and Tourism Industry”(ICCLB 2023), 804, 415.
Springer Nature.
Yen, Nguyen Thi Hong, & Dung, Nguyen Phuong. (2023). Marine pollution management
in response to plastic waste under international law and national law–challenges
and implications for developing countries: a case study of Vietnam. Asia Pacific
Journal of Environmental Law, 26(2), 162–193.
