To achieve developed status, a nation should ideally have a minimum of 4% of its population involved in entrepreneurship. Regrettably, Indonesia’s current rate stands at 3.47%, which is comparatively low compared to neighboring countries such as Singapore (8.6%), Malaysia, and Thailand (above 4.5%). This poses a substantial obstacle for educational institutions in Indonesia, especially universities, as they strive to generate the graduates who adept at working in government or private sectors while possessing the necessary skills and mindset to pursue entrepreneurial endeavors.
On Monday, June 12, 2023, a special public lecture organized for entrepreneurship students was held the 6th-floor auditorium of the Freeport SBM ITB building. The event was made exceptional by the presence of Teten Masduki, the Minister of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia, as a special guest lecturer. The lecture began with a warm welcome from Prof. Dr. Ir. Jaka Sembiring M. Eng, Vice-Rector for Academic and Student Affairs at ITB, who explained the importance of this class as a platform for learning and discussing strategies to enhance and develop entrepreneurship within the academic framework. Moderated by Prof. Wawan Dhewanto, Ph.D., the Secretary of the Academic Senate at ITB, the event was highly interactive and enthusiastic.
Introduced as someone who never applied for a job but successfully created job opportunities, Teten delivered a lecture titled “Government Policies for Millennial Entrepreneurship Development.” Starting the lecture, Teten shared his experience from conducting a survey several years ago, which revealed that 72% of Indonesian youth aspire to become entrepreneurs. He emphasized that the desire has long existed, but concrete actions to realize these aspirations must now be taken. He highlighted universities’ crucial role in meeting Indonesia’s need to create 4 million entrepreneurs, ultimately driving the country towards advancement.
A staggering 99.9% of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia are driven primarily by circumstance or a lack of alternative options. Regrettably, most of these businesses remain entrenched in selling mainstream products sourced from other countries. This situation underscores the imperative for a shift in behavior, where Indonesia transforms into a producer within its borders. The time has come for Indonesia to transition from capitalization to industrialization, capitalizing on its abundant and diverse domestic resources while harnessing optimized technology. Additionally, given that 70% of Indonesia’s total population of 270 million falls within the productive age range, the current moment presents a timely opportunity to sustain and expand these endeavors on a larger and more enduring scale.
During his address, Teten Masduki emphasized the pivotal role the government has played, continues to play and will persist in playing to foster the growth of Indonesia’s MSME entrepreneurial ecosystem. Notable initiatives encompass facilitating market access, financing, and incubators and streamlining legal procedures and regulations, with plans for further enhancements. These endeavors aim to establish a symbiotic relationship between businesses and regulators, collaborating to realize Indonesia’s aspiration of surpassing the 4% threshold of population engagement in entrepreneurship. Such commitments underscore the government’s dedication to advancing the MSME sector and cultivating a conducive environment for entrepreneurs in Indonesia.
The time has come for Indonesia to rouse itself from its prolonged dormancy, embracing a “think globally, act locally” strategy to propel the Indonesian MSME sector towards greater prosperity, sophistication, and impact, thereby breaking free from the middle-income trap.
During the public lecture, several business students with revenues exceeding 10 million presented and showcased their products and services to the Minister. These students include Ghifalda Annisa Desomsoni – Nala Beauty Bar (semi-permanent makeup service), Aisyah Adlina Ghassani – Eatzy Indonesia (social entrepreneurship culinary business), Nathalie Maura Soetopo – Mealth (wellness service), Pujangga Reogavi – I-NewBee, and Yohanna Jesslyn – 4Pact (specializing in edible straws).
