This study analyzes the challenges of Indonesian MSMEs under Law No. 20 of 2008 concerning Micro, Small and Medium Enterprises in the era of AEC 2015-2020 and the readiness of MSMEs under Law No.11 of 2020 concerning Job Creation (the Omnibus Law) in facing the era of AEC 2025. It adopted a normative legal research and found that MSMEs faced many challenges in the AEC era under the MSMEs Law. However, the amendment of this Law by the Omnibus Law constitutes a better strategy to improve and develop the Indonesian MSMEs to be ready in facing the AEC 2025.
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