Indonesia eyes entrepreneur ratio of 4% by 2024

Indonesia is facing the challenge of increasing the number of entrepreneurs in the country. According to Minister of Cooperatives and SMEs Teten Masduki, the number of entrepreneurs in Indonesia is low compared to neighbouring countries such as Thailand (4.26%), Malaysia (4.74%), and Singapore (8.76%), Kompas reported. While the target for this year's entrepreneur ratio is 3.55%, Masduki said it is currently only at 3.47%. By 2024, Indonesia targets to grow the number to 4%. 

Quoting Masduki, Kompas explained that entrepreneurship is "a strategic choice for Millennials" and can potentially boost Indonesia's economy. Aside from the high level of independence, Masduki added that Millennials are also dynamic. Hence, it seeks to capture this potential in them in an effort to increase the entrepreneurship numbers in the country. 

According to Masduki, the government is currently drafting a Presidential Regulation on the Development of National Entrepreneurship as well as a derivative of the Job Creation Law, which will focus on grooming new entrepreneurs. He added that this regulation is expected to target established, young entrepreneurs with innovation, technology, and sustainability, and to open doors to a variety of job opportunities. 

Citing statistics from the Central Statistics Agency, Kompas reported that the COVID-19 pandemic has increased the number of informal workers by 2.62% to 1.18 million compared to two years ago. To support the increased entrepreneurship, the Ministry of Cooperatives and SMEs has also encouraged entrepreneurs to transform digitally through ways such as improving the quality of employees and developing SME integrated clusters.

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