Ijus Melon: Boosting the People’s Economy
Some small business players often do not process their business permits because of limited time and money. This is despite the bigger opportunities and profit that await them once they have registered their businesses.
With this in consideration, the Semarang city administration recently launched the Ijus Melon online business permit service for micro, small and medium businesses, through which permits can be processed for just four minutes.
Eko Yulianto, 48, rushed through the door of the South Semarang district office in Semarang, Central Java, on Wednesday (2/8/2017), carrying a folder of documents. After asking a clerk for information, he filled out a two-page business permit form. He then attached his photograph on the form, signed it and submitted it to the clerk.
The clerk then inputted the data to an online system. Four minutes later, the officer informed Eko that his grocery business was legally registered. Such is the simple process of the online permit service, or Ijus Melon, developed by the Semarang cooperatives and micro business agency.
“At first, I worried that the process would be long. As it turned out, if you have prepared all the required documents, the process is fast. I can take my business permit home in less than five minutes,” said Eko, a resident of Randusari subdistrict in South Semarang.
Eko, who also owns a small restaurant, said that he registered his business to avoid administrative issues down the road. This was because his house and his businesses are located in different neighborhood units (RT). Now, at least, he has proof that his business is licensed if any problems arose.
PungkiIrawan, 25, who lives in Krobokan subdistrict in West Semarang, also said that processing his business permit through the Ijus Melon service was easy. He only needed to find out the required documents from the subdistrict office. It also took him only four minutes to process his business permit.
Pungki, who owns a textile business, said that he wished to expand his business by participating in exhibitions held by the city administration. “We need to be registered if we want to join events or exhibitions. There’s not much expansion we can do without being registered,” he said.
Eko and Pungki are just two owners of micro, small and medium businesses (MSMEs) who have enjoyed the Ijus Melon service for processing their MSME business permit, or IUMK. The online registration service was officially launched in Semarang on November 17, 2015. It is fast, easy and completely free of charge. Furthermore, the Ijus Melon also has an online database of the city’s MSMEs.
The documents required to process the IUMK include the photocopies of the business owner’s ID card and family card, a 4cm x6 cm photograph and letters from the community unit (RW) heads and the subdistrict office. Applicants are required to fill out the appropriate form and submit it with these documents to the district office. A clerk will then process the business permit.
To further simplify the process, applicants can obtain the permit form at subdistrict offices or download it fromhttps://iumk.semarangkota.go.id, which also provides a guide on how to fill out the form.
Applicants then need to submit the completed form with all required documents to the district office. A dedicated officer is available at every district office in Semarang to coordinate the processing of business permits. To accelerate the process, the officer is assisted by several clerks.
Development opportunity
Many benefits await owners of MSMEs once their businesses are registered. Apart from official recognition by the Semarang administration, they can also participate in numerous trainings and exhibitions, as well as expand their market through partnerships.
“Most important is that their existence is officially recognized by the city,” said Semarang cooperatives and micro businesses agency head Litani Satyawati.
Owners of registered businesses may also access the city’s business funding scheme offered through the Wibawa (Wirausaha Bangkit Jadi Jawara, or “Entrepreneurs Emerging as Champions”) credit program, which carries a 3 percent annual interest rate. Business permits may also be used as collateral in taking out bank loans.
The Semarang cooperatives and micro businesses agency data shows that there are 9,506 MSMEs registered through the Ijus Melon system. Litani said that business permit socialization efforts were carried out continuously to encourage owners of all kinds of small businesses to register.
Owners of registered businesses can then request trainings, including management, business skills, packaging, marketing and branding training, at subdistrict offices.
Registered business owners can also participate in the annual activities held by the city administration, including the Ramadhan Bazaar, the Semarang Introducing Market, the Cooperatives and Small Businesses Innovation Expo and the partnership development program (PKBL).
Premium-quality products will have an opportunity to be displayed at the Semarang Creative Gallery or the Semarang MSMEs Gallery, recently launched in the Kota Lama region on Tuesday (1/8/2017). Already displaying 28 products, the gallery is still open to more high-quality local products.
The Ijus Melon program is an implementation of Presidential Regulation No. 98/2014 on Micro and Small Business Permits, which stipulates that businesses must be registered to provide them with legal certainty. The government also exempts business owners from the obligation to pay any fees or fines.
Before, only a district office letter existed that allowed business owners to have certain businesses in specific locations. “As a result, we could only reach the businesses that stood out for trainings and assistance. With Ijus Melon, all business owners have equal opportunity,” Litani said.
Thriving businesses
Litani added that Ijus Melon helped small local businesses in Semarang to thrive through development assistance programs. An online database helps to distribute development funds to the appropriate businesses. The result is expected to be effective.
Semarang Mayor Hendrar Prihadi said that MSME development had increased significantly since the Ijus Melon program was launched. Revenues from MSMEs totaled only Rp 300 billion (US$22.49 million) in 2015, which skyrocketed to Rp 700 billion in 2016.
The Ijus Melon program, combined with marketing mediums such as the MSME galleries and a variety of local, regional and national exhibitions, is hoped to strengthen product development at local MSMEs. Through the breakthrough of the lightning-fast permit processing, the wheels of the people’s economy will turn faster.