Regulation and Legal Basis

Oct 13, 2025 by talynt.org 21 views

Introduction

The Industry and Trade Business License (SIUP) is a crucial document that enables various entities, including companies, cooperatives, partnerships, and individuals, to conduct business activities in the field of trade. In this context, this study aims to analyze the regulation and legal basis for granting an industry and trade business license in Medan in accordance with Regional Regulation No. 9 of 2014, as well as identifying the procedures and obstacles faced in the process from the perspective of state administrative law.

Regulation and Legal Basis

The legal basis governing the giving of SIUP in the city of Medan includes several important regulations. The 1945 Constitution of the Republic of Indonesia serves as the main reference, followed by Law Number 12 of 2011 relating to the formation of laws and regulations. In addition, the Decree of Industry No. 289/MPP/KEP/10/2001 provides standard guidelines in giving SIUP. In particular, Medan City Regional Regulation No. 9 of 2014 concerning Implementation of Industry and Trade Business is an operational basis in SIUP regulation.

The 1945 Constitution of the Republic of Indonesia is the foundation of the country's legal system, and it provides the framework for the regulation of business activities. Law Number 12 of 2011, on the other hand, provides a more detailed framework for the formation of laws and regulations, including those related to business licensing. The Decree of Industry No. 289/MPP/KEP/10/2001 provides specific guidelines for the granting of SIUP, while Medan City Regional Regulation No. 9 of 2014 provides a more detailed operational basis for the regulation of industry and trade business in the city.

Procedure for Granting a Permit

The SIUP procedure consists of three categories: small, medium, and large SIUP. For the small and medium trade SIUP, the document was signed by the Head of the Level II Regional Trade Office on behalf of the Minister. Conversely, the SIUP for large companies is signed by the Head of the Regional Trading Regional Office Level I. The process of submitting this permit begins with a written application to the mayor, accompanied by the specified conditions.

The procedure for granting a permit is a critical aspect of the SIUP regulation. The three categories of SIUP (small, medium, and large) reflect the different levels of business activity and the corresponding requirements for the permit. The signature of the Head of the Level II Regional Trade Office or the Head of the Regional Trading Regional Office Level I serves as a formal endorsement of the permit, indicating that the business has met the necessary requirements.

Obstacles in the Process of Granting a Permit

Although there is a clear legal framework, the implementation of the granting of business licenses in the city of Medan faces a number of obstacles. One of them is the management process that is often considered complicated, which can take a long time and drain the cost. Disadvantages in the Standard Operating Procedure (SOP) are a serious problem, because without a clear guide, both entrepreneurs and supervisors are often confused in carrying out their duties.

In addition, inadequate capacity of permit supervision apparatus adds difficulties in the permit granting process. The lack of socialization regarding legislation also contributes to the low legal awareness of the community. All of these factors make law enforcement in the field of industry and trade business licensing become difficult to carry out effectively.

The management process is a critical aspect of the SIUP regulation, and any complications or inefficiencies can lead to delays and increased costs. The lack of a clear SOP can also lead to confusion and difficulties in carrying out duties, both for entrepreneurs and supervisors. The inadequate capacity of permit supervision apparatus and the lack of socialization regarding legislation are also significant obstacles that need to be addressed.

Analysis from the Perspective of State Administrative Law

From the perspective of state administrative law, the procedure for granting a business permit must pay attention to the principles of law in force, including transparency, accountability, and legal certainty. The process that is complicated and inefficient reflects the existence of an incomplete between existing legal norms and practice in the field. Good law enforcement requires support from all parties, including the government in providing facilities and training for apparatus that oversees business licenses.

The importance of socialization regarding regulations also cannot be underestimated. The community needs to be given a better understanding of the processes and conditions needed to get SIUP. Thus, law enforcement and licensing implementation can run more smoothly, and the rights of the community and entrepreneurs can be guaranteed.

The principles of transparency, accountability, and legal certainty are essential in the context of state administrative law. The complicated and inefficient process of granting a business permit reflects a lack of alignment between existing legal norms and practice in the field. Good law enforcement requires support from all parties, including the government in providing facilities and training for apparatus that oversees business licenses.

Conclusion

In conclusion, the granting of an industry and trade business license in Medan City is a complex process that requires careful consideration of the legal framework and the principles of state administrative law. The procedure for granting a permit must pay attention to the principles of law in force, including transparency, accountability, and legal certainty. The process that is complicated and inefficient reflects the existence of an incomplete between existing legal norms and practice in the field.

To increase the effectiveness of the granting of industrial and trade business licenses in the city of Medan, there is a need for collaborative efforts between the government, the community, and the private sector. Clear SOP implementation, training for apparatus, as well as broader socialization of regulations will be very helpful in creating a conducive business climate.

The granting of a business license is not only a formality, but is also an integral part of sustainable economic development in an area. With the right improvement steps, Medan City can be an example for other regions in terms of effective and efficient business regulation.

Recommendations

Based on the analysis of the regulation and legal basis for granting an industry and trade business license in Medan in accordance with Regional Regulation No. 9 of 2014, the following recommendations are made:

Simplify the procedure for granting a permit: The procedure for granting a permit should be simplified to reduce the complexity and inefficiency of the process.
Provide clear SOP: A clear SOP should be provided to guide entrepreneurs and supervisors in carrying out their duties.
Increase the capacity of permit supervision apparatus: The capacity of permit supervision apparatus should be increased to improve the efficiency of the permit granting process.
Improve socialization regarding regulations: Socialization regarding regulations should be improved to increase the legal awareness of the community.
Collaborate with the government, the community, and the private sector: Collaborative efforts between the government, the community, and the private sector are necessary to create a conducive business climate.

By implementing these recommendations, the granting of an industry and trade business license in Medan City can be made more effective and efficient, and the rights of the community and entrepreneurs can be guaranteed.

Q: What is the Industry and Trade Business License (SIUP)?

A: The Industry and Trade Business License (SIUP) is a crucial document that enables various entities, including companies, cooperatives, partnerships, and individuals, to conduct business activities in the field of trade.

Q: What are the requirements for obtaining a SIUP?

A: The requirements for obtaining a SIUP include a written application to the mayor, accompanied by the specified conditions, such as a business plan, financial statements, and other supporting documents.

Q: What are the different categories of SIUP?

A: The SIUP procedure consists of three categories: small, medium, and large SIUP. The category of SIUP depends on the level of business activity and the corresponding requirements for the permit.

Q: Who signs the SIUP document?

A: The SIUP document is signed by the Head of the Level II Regional Trade Office or the Head of the Regional Trading Regional Office Level I, depending on the category of SIUP.

Q: What are the obstacles in the process of granting a permit?

A: The obstacles in the process of granting a permit include a complicated management process, inadequate capacity of permit supervision apparatus, and lack of socialization regarding legislation.

Q: What is the importance of socialization regarding regulations?

A: Socialization regarding regulations is essential to increase the legal awareness of the community and to ensure that entrepreneurs and supervisors understand the processes and conditions needed to get SIUP.

Q: What are the principles of law in force that must be considered in the procedure for granting a business permit?

A: The principles of law in force that must be considered in the procedure for granting a business permit include transparency, accountability, and legal certainty.

Q: What is the role of the government in providing facilities and training for apparatus that oversees business licenses?

A: The government has a crucial role in providing facilities and training for apparatus that oversees business licenses to ensure that the permit granting process is efficient and effective.

Q: What are the recommendations for improving the procedure for granting a permit?

A: The recommendations for improving the procedure for granting a permit include simplifying the procedure, providing clear SOP, increasing the capacity of permit supervision apparatus, improving socialization regarding regulations, and collaborating with the government, the community, and the private sector.

Q: What are the benefits of implementing these recommendations?

A: The benefits of implementing these recommendations include creating a conducive business climate, increasing the effectiveness of the granting of industrial and trade business licenses, and ensuring that the rights of the community and entrepreneurs are guaranteed.

Q: What is the significance of the granting of a business license in sustainable economic development?

A: The granting of a business license is an integral part of sustainable economic development in an area, and it is essential to create a conducive business climate that supports economic growth and development.

Q: What are the next steps for implementing these recommendations?

A: The next steps for implementing these recommendations include conducting a thorough analysis of the current procedure for granting a permit, identifying areas for improvement, and developing a plan for implementing the necessary changes.

Q: Who should be involved in the implementation of these recommendations?

A: The implementation of these recommendations should involve the government, the community, and the private sector, as well as other stakeholders who have a vested interest in creating a conducive business climate.

Q: What are the expected outcomes of implementing these recommendations?

A: The expected outcomes of implementing these recommendations include a more efficient and effective permit granting process, increased economic growth and development, and a more conducive business climate that supports entrepreneurship and innovation.