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Original Research

SEEKING THE IDEAL FORM OF SOLE PROPRIETORSHIP IN BUSINESS ACTIVITIES IN INDONESIA

MUHAMMAD PURBAJA 1, BUDI SANTOSO 2, and SITI MALIKHATUN B 3.

Vol 18, No 11 ( 2023 )   |  DOI: 10.5281/zenodo.10205647   |   Author Affiliation: Doctoral Law Program, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang 1; Doctoral Law Program, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang 2,3.   |   Licensing: CC 4.0   |   Pg no: 1134-1150   |   Published on: 25-11-2023

Abstract

Muhammad Purbaja. 2022. Dissertation of the Doctoral Study Program in Law, Diponegoro University, Semarang. Looking for the ideal form of sole proprietorship in business activities in Indonesia. The purpose of this study is to analyze: 1) How is the dynamics of individual business forms (Sole proprietorship) made the choice of many business actors in carrying out their business activities, especially from the aspects of advantages and disadvantages of choosing individual business forms in Indonesia?, 2) Are existing regulations capable enough to regulate and accommodate various basic characteristics of individual business entities compared to other business forms?, 3) What is the ideal arrangement of an individual business entity in Indonesia? The research method used is empirical juridical with a statutory approach, concept approach, and case studies. The results show that: 1) The emergence of Indonesian entrepreneurs can be the starting point for the movement of the Indonesian economy in a better direction. People's mindset about entrepreneurship gradually began to grow. Emerging jobs will certainly absorb labor. Indonesia is a country with a high population. Entrepreneurship in labor-intensive sectors is what is needed in Indonesia so that people's welfare can increase and can reduce unemployment and be able to increase the growth rate and economic welfare in Indonesia. 2) Establishment of an Individual Company is allowed to establish an individual company other than the individual company that is already owned. This establishment can only be done after a certain period of time after the establishment or ratification of the previous individual company legal entity. The minimum authorized capital of the company is handed over to the founders or shareholders as stated in the company's deed of establishment. When it comes to the form of a business entity, the agreement between the founders is the initial form of an association. The association then became the initial form of various forms of business entities. 3) Law Number 11 of 2020 concerning Job Creation (hereinafter referred to as the Job Creation Law) in which one of the clusters amends and adds provisions in the Law on PT. The Job Creation Law is expected to increase new jobs and increase domestic and foreign investment in Indonesia by streamlining statutory provisions.


Keywords

Legal, Business, Individual, Business.