The Business Law Community (BLC) of the Faculty of Law, Universitas Gadjah Mada (FH UGM), in collaboration with RRI Pro 2 Jogja, organized a legal education broadcast titled “MSMEs Moving Up: Legal Businesses, Expanding Opportunities” as part of the Community Service Grant program of the UGM Center for Legal Consultation and Assistance (Pusat Konsultasi dan Bantuan Hukum/PKBH). This initiative was conducted to enhance public legal literacy, particularly among Micro, Small, and Medium Enterprises (MSMEs) in the Special Region of Yogyakarta, regarding the importance of business legality in promoting business sustainability and competitiveness.
The program featured two speakers: FH UGM Master’s alumnus Skolastika Probo Citaningrum, S.H., LL.M., and FH UGM student Afanin Fariq Fajriya. The initiative was motivated by the rapid growth of MSMEs in Yogyakarta, which has not been fully accompanied by adequate understanding of business legality. According to data from the Regional Development Planning and Research Agency of Yogyakarta, the number of MSMEs in the region has increased significantly in recent years, particularly in the culinary, creative economy, trade, and service sectors. However, many MSMEs still operate at the micro level and face challenges in achieving sustainable business growth.
The broadcast discussed various issues commonly encountered by MSME actors, including limited understanding of the Business Identification Number (Nomor Induk Berusaha/NIB), halal certification, Intellectual Property Rights (IPR) protection, as well as access to financing and export opportunities. In addition, the speakers explained the transformation of the business legalization system through the Online Single Submission (OSS) mechanism, which is designed to simplify the process of obtaining business legality quickly, easily, and free of charge.
The program also highlighted several real-life case studies demonstrating the risks of operating without proper business legality. One example involved a frozen food business owner in Sampit who received criminal sanctions due to the absence of distribution permits and compliant product labeling. Another case discussed an MSME cassava chip producer in Malang that failed to export products to Malaysia because it lacked a Business Identification Number. These cases illustrated that business legality functions not only as an administrative requirement, but also as a form of legal protection and a gateway to broader market access.
Through this initiative, the public gained a deeper understanding that business legality provides strategic benefits for the sustainability of MSMEs. Legal status offers legal protection for business owners, increases consumer trust, facilitates access to financing from financial institutions, and opens opportunities for partnerships with various stakeholders. Furthermore, legality enables MSMEs to access government programs, including business mentoring, financial assistance, and market development facilitation.
The interactive discussion during the broadcast reflected the high level of public enthusiasm regarding business legality issues. Many MSME actors raised questions concerning the process of obtaining a Business Identification Number, trademark protection, as well as halal certification and distribution permit procedures. This demonstrated the continuing need for business law education, particularly amid the rapid growth of the creative economy and digital transformation.
This legal education initiative is also highly relevant to the achievement of the Sustainable Development Goals (SDGs). First, it supports SDG 8: Decent Work and Economic Growth by strengthening MSME capacity to grow sustainably and create decent employment opportunities. Second, the program contributes to SDG 9: Industry, Innovation, and Infrastructure by encouraging MSMEs to transition toward more modern, legal, and digitally based business systems. Third, the initiative aligns with SDG 16: Peace, Justice, and Strong Institutions through efforts to enhance legal awareness, legal certainty, and public access to inclusive regulatory systems.
Beyond providing education to the public, this activity is expected to strengthen synergy among universities, government institutions, public media, and MSME communities in creating a healthy and sustainable business ecosystem. As a public broadcasting institution, RRI Pro 2 Jogja plays a strategic role in disseminating educational information that is easily accessible to the wider community. Meanwhile, through BLC, FH UGM seeks to deliver academic-based community service programs that are practical and responsive to societal needs.
Through this broadcast, it is hoped that MSME actors in Yogyakarta will increasingly understand that business legality is not merely an administrative obligation, but rather a crucial foundation for enhancing business competitiveness, expanding market access, and strengthening legal protection. With greater awareness of business legality, MSMEs are expected to grow sustainably and become one of the key pillars of regional and national economic development.
Author: Maytri Gestart Ignatius (BLC)
