The Role of the Medan City Government in Promoting Investment to Support the Development of Coffee Shop Micro, Small and Medium Enterprises (MSMEs)

Abstract

This paper examines the role of the Medan City Government in promoting regional investment to support the growth of coffee shop micro, small, and medium enterprises (MSMEs) as part of the creative economy subsector. The study is motivated by the rapid expansion of coffee shop businesses in Medan, which has not been matched by adequate regulatory support and investment facilitation. The research addresses the legal framework governing regional investment, the functional role of local government, and the key obstacles and remedial measures in implementation. It employs a normative and empirical juridical approach, using primary data from interviews and secondary data drawn from legislation and scholarly literature. The findings indicate that, although relevant legal bases and supporting programs are in place, implementation remains uneven and suboptimal. Limited outreach, weak inter-agency coordination, and the absence of a sector-specific approach constitute the principal constraints. Accordingly, strengthening institutional synergy, improving the quality of business assistance, and adopting sector-based policy design are necessary to foster an inclusive investment climate for coffee shop MSMEs.

keywords : coffee shop, regional investment, public policy, local government’s role, MSME’s