Economic recovery is one of the major issues of the Indonesian presidency at this year's Group-20 (G20) forum. To realise this, businesses from G20 member countries have established the Business-20 (B20) forum. In B20 activities, large businesses or corporations are expected to participate and partner with Micro, Small and Medium Enterprises (MSMEs) to create inclusive economic growth. This can also realise other priority issues in the G20 presidency, namely promoting economic and financial inclusion.

Not only that, MSME partnerships with large businesses are also important for improving the MSME class. Thus, the partnership between the two parties must continue to be developed with the principle of mutual benefit so that they can compete in the global market.

This is considering data from the Minister of Cooperatives and SMEs (Menkop UKM), Teten Masduki, which states that the participation of Indonesian MSMEs in the supply chain is still minimal. Currently, the participation of MSMEs in the global value chain is only 4.1% of the total number of business units. Indonesian MSMEs are still lagging behind in the global supply chain when compared to several other neighbouring countries such as Malaysia which has reached 46.2%, Thailand 29.6%, the Philippines 21.4%, and Vietnam 20.1%.

It is hoped that partnerships, which include transferring skills and technology to mentoring MSME products, can be improved immediately and large businesses can prioritise MSMEs in franchising, providing locations, and providing special rights to market goods and services.

Moreover, from the partnership, there are incentives that support MSMEs and large businesses such as reductions and regional levies, capital assistance and research to MSMEs and cooperatives, and vocational training.

Meanwhile, large businesses will also receive incentives to reduce regional taxes and levies, and super deduction tax for vocational assistance. The government will also provide easy financing for the supply chain of MSMEs and cooperatives through the People's Business Credit (KUR) and LPDB-KUKM.

To support partnerships between MSMEs and large businesses, President Joko Widodo (Jokowi) himself has conveyed several directions, namely ensuring that the partnership is sustainable and further expanded and institutionalised until a mutually beneficial relationship pattern is formed.

In addition, President Jokowi also hopes that MSMEs can continue to learn and improve management and product quality in accordance with market demands.

As for several other things that need to be done so that the partnership between MSMEs and large businesses runs conducively, among others, Dinah's will follow.

Complete Business Legality Documents
Legality is one aspect that is considered by large companies when they want to partner with MSMEs. Therefore, as an MSME actor, it is necessary to complete legal business legality documents such as:

• Business Licence, which can be processed online through the oss.go.id/portal page or it can also be a Trade Business Licence (SIUP) issued directly by the nearest Licensing Office where the business is located,
• Business Identification Number (NIB), which is also taken care of online through the oss.go.id/portal page, Taxpayer
• Identification Number (NPWP), which is taken care of at the nearest Tax Office where the business is located.

Improve Product Quality
Improving product quality is the main step that must be considered, especially for MSMEs that want to partner with large businesses.

When launching or selling a product or service, businesses must ensure that the business and its products provide a solution to a problem, the product is easy to use, the durability provided, and answer other important questions related to the function of the product or service.

This is because products that have substandard criteria are usually less able to compete with other products in the market. So make sure, as a business actor, you should have standard criteria when selling or offering your products to potential partners.

Register a Trademark with the DGKI
Once the quality of the product is assured, the next step is to register the trademark. This is a form of compliance with legality in doing business.

This is also one of the considerations for large businesses that will partner with MSMEs. Because they as investors will provide funds and ensure that the businesses they help are legally compliant.

To register a trademark, businesses can do so through the Directorate General of Intellectual Property (DJKI) through the page http://dgip.go.id by including personal data or company data, brand etiquette/label, and then making PNBP payments.

Determine the Type of Company to Partner with
After ensuring that your business already has good product quality and complete legality documents, the next thing to consider for MSMEs is to determine the type of company that will work together.

Form a partnership that supports the productivity of each party in the long run. By partnering with the right business partner, of course, the goals of cooperation are easier to achieve according to the target.

Especially for MSMEs, business cooperation is nothing but about achieving great profits and vision. Therefore, it is better to partner with other parties whose performance has been better than your business in a particular field.

Making a Partnership Agreement
Every collaborative relationship requires a contract or agreement to ensure that what has been agreed upon can run smoothly and conducively.

In general, a partnership agreement between two businesses or MSMEs contains starting from what products are offered, the rights and obligations of the parties, force majeure circumstances, to dispute resolution. Not only that, the partnership agreement also contains the period of the cooperation undertaken, whether it will be valid continuously or only apply for a certain period of time.

By making an agreement, it will indirectly prevent and minimise problems in the future, because usually the contract contains what sanctions will be imposed on parties who violate their obligations.

Therefore, the implementation of a business partnership relationship can run well and smoothly because this agreement is binding and guarantees all parties involved to perform their obligations and get their rights.

These are the things that need to be considered in establishing partnerships between MSMEs and large businesses so that they run conducively. Apart from being mutually beneficial, this partnership is also one of the efforts to be able to increase economic recovery after the Covid-19 pandemic.

Source: kontrakhukum.com