INDONESIAN GOVT ENCOURAGES YOUNG PEOPLE TO JOIN ENTREPRENEURSHIP by Fardah

    Jakarta, March 18, 2015 (Antara) - The Indonesian government is concerned that the number of entrepreneurs in Indonesia is only 1.65 percent of the country's population, compared to that in Singapore which is seven percent, and Malaysia as well as Thailand five percent respectively.

    Supported by state-owned Bank Mandiri, the government has launched a National Entrepreneurship Movement (GKN), expected to be a strategic move to boost entrepreneurship in the country, since 2011.

    "The movement is expected to increase the number of entrepreneurs to at least two percent," Cooperatives and SMEs Minister A.A.G.N. Puspayoga stated recently.

    To mark the Movement this year, more than one thousand people joined a series of activities organized in Makassar, South Sulawesi, on March 17, 2015.  
   A number of businessmen, university students, members of strategic groups, farmers, and fishermen participated in the GKN activities. 
   Some of them come from the islands surrounding Sulawesi, and most of them are fishermen.

   "The GKN in Makassar is organized at the Celebes Convention Center, Makassar, and has the participation of young entrepreneurs, and those interested in becoming entrepreneurs," Prakoso Budi Susetyo, the deputy-in-charge of human resource development of the Cooperatives and Small and Medium Enterprises (SMEs) Ministry, stated.

   Minister Puspayoga when officially flagging off the GKN activities in Makassar,  said the event was aimed at boosting the culture of entrepreneurship in the community.

   The GKN activities included an integrated training on Cooperatives Public Campaign attended by 450 people, a teleconference of entrepreneurship training attended by 400 participants, and a training on "Understanding Cooperatives for Apparatus" attended by 30 people.

   The minister stated that trainings are important to improve the capacity of human resources engaged in SMEs, so that they can upgrade their businesses from micro to small-scale businesses and later to medium-scale businesses.

   He also urged entrepreneurs to join cooperatives in order to establish cooperation and develop their businesses.

   Earlier, on March 12, 2015, President Joko Widodo (Jokowi) attended a Mandiri Entrepreneurship Award presentation ceremony at the Jakarta Convention Center (JCC).

    In his remarks, Jokowi urged the young people to capitalize on the huge market opportunity by starting their own businesses.

    "Outsiders can see a wider market opportunity in Indonesia, and therefore, the youth should take advantage of it to start their own businesses," the Head of State noted after presenting awards to young entrepreneurs.   
   The SME sector contributes significantly to the economy, absorbing more than 90 percent of the domestic workforce and accounting for more than 50 percent of national gross domestic product (GDP).

    Some 98 percent of our businessmen are categorized as small and medium entrepreneurs, who either do business on their own or join cooperatives.

    They need to be assisted in order to boost even development and prosperity.

    To further promote entrepreneurship culture, the Cooperatives and Small and Medium Enterprises (SMEs) Ministry will organize the Entrepreneurship Expo 2015 in Denpasar, Bali, on April 9-13, 2015.

    "The expo will display products of successful entrepreneurs who have been able to enhance their capabilities, and it is expected to inspire other entrepreneurs," the ministry's deputy-in-charge of human resources, Prakoso Budi Susetyo, noted recently.

    Their success is expected to inspire other entrepreneurs, students, and the public, in general, so that they could become entrepreneurs on their own.

    Since the launch of the National Entrepreneurship Movement (GKN) in 2011, the nation has been able to produce successful entrepreneurs.

    "Many of them have become successful, and we hope that they can share their knowledge with entrepreneur candidates," he stated.

    The ministry will promote entrepreneurship in universities across Indonesia and hopes that entrepreneurship will help to reduce the unemployment rate.

    The EY G20 Entrepreneurship Barometer 2013 in its report mentioned that the entrepreneurship culture is weak in Indonesia, primarily due to its poor performance on innovation-related metrics, rather than any lack of entrepreneurial spirit.

    However, the reality is that the majority of the country's entrepreneurs tend to operate in sectors - from retail, food and beverage, and hospitality to fishing, agriculture and mining - that don't require much technological innovation.

    The Indonesian economy is heavily reliant on these entrepreneurial businesses, which accounted for 57% of GDP in 2012.

     Given the obvious logistical challenges faced across the archipelago's thousands of islands, there is also an inherent difficulty for entrepreneurs in building sizeable national enterprises, which adds to the dominance of entrepreneurial businesses in the economy, the Barometer noted.

   Overall, according to the EY G20 Barometer,  Indonesian entrepreneurs face future challenges in maintaining the country's current rapid-growth.

   But the survey suggests that entrepreneurs in Indonesia are the most optimistic in the G20 about the progress that their country is making, particularly in terms of the regulatory environment, access to funding and the availability of coordinated support. ***3***
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