Light-Touch Regulation to Optimize the Startup and MSME Ecosystem in Indonesia

Startup is a newly business entity based on digital technology which is currently a novel development to provide alternative solutions to problems and ease the burden of modern life. Almost the same as Micro, small, and emerging businesses (MSME) in Indonesia experience problems in terms of access to capital. Apart from that, the complexity of business licensing procedures, regulations and unclear institutions that regulate startup and MSMEs in Indonesia fail even before they develop. This research aims to restore regulations in Indonesia in the field of startup and MSMEs. The research method employed is normative legal research with a statute- and conceptual-based approach. From the study's findings, it can be concluded that the Light Touch Regulation in the field of startup and MSMEs is expected to improve the start-up and MSMEs ecosystem, such as ease of business trials, legal protection for new entrepreneurs, access to financing, or protection of intellectual property as has been proven implemented by several countries such as America, Japan, Germany, Swiss, South Korean, etc.