Minister targets one million new entrepreneurs for advanced Indonesia

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Cooperatives and Small, Medium Enterprises (SMEs) Minister Teten Masduki targets the addition of one million new entrepreneurs to increase the ratio of the nation’s entrepreneurship under the government’s efforts to prepare Indonesia to become developed.

“We know that all institutions predict that in 2045, Indonesia will rank among the top four countries in the world economy. One of the requirements to become a developed country is to increase entrepreneurship,” he stated at a press conference after the Coordinating Ministerial Meeting on National Entrepreneurship Development in Jakarta on Thursday.

To become a developed country, the entrepreneurship ratio needs to be in the range of 12 to 14 percent, while currently, the entrepreneurship ratio in Indonesia is only at 3.48 percent and is targeted to reach 3.95 percent in 2024.

Masduki later highlighted the target to create 600 thousand new entrepreneurs at the regional level, with help from the local government, and 400 thousand new entrepreneurs under the ministry’s assistance.

Several approaches will be adopted to increase the number of entrepreneurs, specifically business incubation by providing continuous assistance to Micro, Small, and Medium Enterprises (MSMEs), he remarked.

“It will no longer be temporary training. We will incubate the MSMEs owners until they are ready to compete,” Masduki remarked.

The incubation approach is also intended to connect with the financing support, such as through the People’s Business Credit (KUR) Program, which stipulates that 30 percent of the bank loans must be given to MSMEs.

In addition to financing, MSMEs’ access to the market is encouraged by regulations that require government procurement to buy 40 percent of the MSMEs’ products.

Furthermore, his ministry is aiming to increase Indonesia’s ranking in the Global Entrepreneurship Index (GEI), from currently being at the 75th position to climb up to 60th out of the 137 countries.

If the target is achieved, then it will be easier for investors to invest in Indonesia and create more job opportunities.

“Later, Indonesian MSMEs will attract more investors,” he added.

Meanwhile, Deputy for Entrepreneurship at the Ministry of Cooperatives and SME, Siti Azizah, remarked that the general public has become the target of the government’s efforts to increase the number of entrepreneurs.

“The first step is to make members of the public as prospective entrepreneurs and then increase the level to become beginner entrepreneurs and thereafter encourage them to become advanced entrepreneurs, who are ready to export produced goods,” Azizah noted.

Source: Antara News