GOVT NEEDS TO DEVELOP YOUNG ENTREPRENEURS

By Andi Abdussalam

Jakarta, June 17 (Antara) -- The Indonesian government needs to develop the country's young entrepreneurs to help boost the nation's economic development and enhance the number of job opportunities.         "Some 57 million small businesses (UKM) in the country are run by young entrepreneurs. With such a large number, we estimate that they contribute at least Rp570 trillion to the country's economy," Hardini Puspasari, the head of the Autonomy Board for Business, Investment and Small Business Enterprises Affairs of the Indonesian Young Entrepreneurs Association (HIPMI) said on Wednesday.         Seeing the important role played by entrepreneurs, the government needs to develop young businessmen to raise the number of entrepreneurs in the country. Their numbers are very small as compared to Indonesia's population.         "The country's entrepreneurs account for only 1.8 percent of the total population. It is a relatively small figure. Ideally, it should be more than 2.0 percent. In Malaysia, Singapore, Taiwan and other neighboring countries, entrepreneurs account for about 8.0 percent of the population," General Chairman of HIPMI Bahlil Lahadalia said in a written statement recently.           Lahadalia argued that the low entrepreneur-population ratio in Indonesia was one of the reasons why Indonesia was unable to generate adequate employment opportunities for the increasing number of job seekers.          After all, UKMs run by young entrepreneurs have been able to absorb 97.2 percent of the country's total workforce so far.          Therefore, the association has called on the central and regional governments to provide its members with the best business facilities to help develop the skills of young entrepreneurs.          HIPMI has also urged the central government to provide special incentives to young Indonesian entrepreneurs who are keen to expand their businesses. These should be provided for businesses across several categories.          According to Hardini Puspasari, the categories could include entrepreneurs who expanded their businesses and absorbed several workers from their surroundings as well as businesspersons who developed a type of trade that increased the added value of domestic products.          These companies not only sell raw materials but also process them into semi-finished goods or finished products.          "The incentives could be in the form of exemption from income tax and value-added tax for a certain period of time, or in the form of financial support for new young entrepreneurs investing in their businesses," she stated.          Citing an example, she suggested that young businessmen can be offered guidance in preparing their tax reports so their investments could be realized comprehensively.          With assistance and incentives from the government, the contribution of UKMs, which is estimated to have amounted to Rp570 trillion so far, could be increased.          Puspasari further noted that the Rp570 trillion estimated contribution of UKMs exceeded the investment target of Rp519.5 trillion set by the Capital Investment Coordinating Board (BKPM).         She also affirmed that the figure was obtained by calculating the minimal working capital earned by the young entrepreneurs, which is some Rp10 million each.          "It has a significant impact on the circulation of money and investment," Puspasari pointed out.          Moreover, she asserted that the micro, small and medium enterprises (UMKM) were the backbone of the national and regional (ASEAN) economies. The UMKM sector is able to provide jobs to 97.2 percent of the country's total workforce.          Furthermore, to increase the number of new entrepreneurs, HIPMI also proposed to the government the issuance of a law on young entrepreneurs to help new businessmen carry out their endeavors and to increase the number of entrepreneurs in the country.          "HIPMI has initiated the drafting of a bill on beginner entrepreneurs," General Chairman of HIPMI Bahlil Lahadalia said.          In addition, Indonesian women's empowerment organization, Women for the World (WFTW), has expressed its willingness to create 5,000 Indonesian women entrepreneurs within five years.          "Our goal is to create 5,000 women entrepreneurs in five years. We aim to create 1,000 entrepreneurs in each province every year," Founder and President of WFTW Rosa Rai Djalal said on Monday.          She expressed hope that the effort can support the growth of the national economy. Increasing entrepreneurship, particularly by women, can improve the economic welfare of families without them having to leave their children or husband, she explained.          "Women who participate in entrepreneurship training must share their knowledge with two women in their community," Djalal said.          The multiplier system is expected to be able to accelerate the growth of women entrepreneurs, she added.          According to Djalal, entrepreneurship is the right profession for women because of their high flexibility in running businesses.          "Besides, entrepreneurship does not need any specific educational background. It can also be done without leaving the house. They can make money without leaving their children," she remarked.     ***3*** (T.A014/INE) EDITED BY INE (H-YH) (T.A014/A/BESSR/A/Yosep) 17-06-2015 23:17: