The Ministry of Law and Human Rights has officially launched an online registration service for social enterprises under the General Legal Administration System (AHU Online).
This initiative provides a formal platform for social enterprises, ensuring that they are properly documented and recognized within Indonesia’s legal framework.
Minister of Law and Human Rights, Supratman Andi Agtas, emphasized that the launch of this registration service is a significant milestone in fostering a fair and sustainable economy. It aligns with the government’s commitment to creating quality jobs and supporting entrepreneurial ventures.
“This initiative demonstrates the government’s serious support for social enterprises, which prioritize not only profit but also addressing social and environmental issues for the benefit of society,” stated Supratman during a press conference in Jakarta, as reported by Antara News.
Framework for Social Entreprises
The General Legal Administration System, developed by the Directorate General of General Legal Administration within the Ministry of Law, aims to simplify the management of legal entities for social entrepreneurs.
This system facilitates everything from business establishment to the reporting and measurement of social impact, providing a comprehensive framework for social enterprises.
In addition to streamlining legal processes, the system is designed to enhance the credibility and integrity of social entrepreneurship, making it more appealing to investors both domestically and internationally.
Minister of Law Supratman Andi Agtas has encouraged social enterprises to register through the Online General Legal Administration System.
“I hope that social entrepreneurs recognize this platform as an opportunity to grow and contribute to the achievement of the 17 UN Sustainable Development Goals (SDGs),” stated Supratman at a press conference during the inauguration of the Social Enterprise Registration Service in Jakarta on Wednesday, November 14, 2024.
Supratman emphasized that social enterprises are distinct from other business entities in that they are required to align with at least one of the SDGs—such as poverty alleviation, hunger reduction, or improving health outcomes.
“Social enterprises are expected to reinvest a minimum of 51% of their profits into initiatives that support sustainable development goals,” he added.
The introduction of this registration service underscores the government’s recognition of social enterprises in Indonesia and its commitment to fostering a strong and supportive ecosystem for their continued development.
Supratman highlighted the importance of cross-sectoral collaboration among various stakeholders, including the government, private sector, civil society, and donor organizations, to build an environment conducive to the growth of social enterprises.
“Through collaboration, we can provide more robust support for social enterprises, enabling them to deliver tangible and sustainable social impact,” said Supratman.
He also expressed hope that registration in the system would open up additional funding opportunities and strategic partnerships for social entrepreneurs, further enhancing their capacity to drive positive change.
Incentives for Social Enterprises
In a bid to accelerate the registration process within the General Legal Administration, the government has announced plans to offer incentives and facilities to social enterprises that successfully register through the Online General Legal Administration System.
“We aim to provide incentives and facilities to MSMEs (micro, small, and medium enterprises) as a form of appreciation for their role in advancing the implementation and achievement of the Sustainable Development Goals (SDGs),” said Cahyo Rahadian Muzhar, Director General of the General Legal Administration at The Ministry of Law and Human Rights, during a press conference on Wednesday, November 14, 2024, as quoted from AntaraNews.com.
Looking ahead, the Directorate General of General Legal Administration plans to continue developing regulations and offering additional support to social entrepreneurship.
Muzhar noted that there is increasing global interest from investors seeking to direct their capital toward businesses that address social challenges, whether through reinvestment into the business itself or through social impact activities.
“One example of this is hiring people with disabilities, which qualifies as part of a social enterprise,” he explained.
With the official launch of the registration service by The Ministry of Law and Human Rights, entrepreneurs now have the opportunity to register their social enterprises through the Online General Legal Administration System.
“Through this registration, we aim to position social enterprises as key drivers of sustainable development in Indonesia, addressing various social and environmental challenges while delivering significant benefits for future generations,” he stated.
The inauguration of the Social Enterprise Registration Service also paves the way for the government to continue refining regulations and offering further support for social entrepreneurship.
This will involve ongoing feedback and collaboration from business owners, social institutions, and community organizations.
