JAKARTA - The candidate for the General Chair of the Indonesian Young Entrepreneurs Association (BPP HIPMI), Anthony Leong, introduced the idea of establishing a Youth Development Bank in the debate for the general chair of the BPP HIPMI.
Anthony assessed that HIPMI needs to encourage the emergence of new financial institutions that specifically focus on financing productive products for young people who want to build businesses.
"We will propose to the government to form a new bank that focuses on a new business financing scheme based on feasibility studies with strict curation by the government and business associations," he said in a statement, Monday, May 25.
According to Anthony, the Youth Development Bank concept is not only providing low-interest loans, but also building a financing system that truly supports the birth of new entrepreneurs in Indonesia.
He explained that the financing will be given based on business feasibility and business prospects, not solely based on assets or collateral owned by prospective entrepreneurs.
Anthony assessed that many young people have innovative and potential business ideas, but have difficulty developing due to the conventional financing system that is not friendly to startup business actors.
"What we are fighting for is not just cheap interest, but a guarantee of real access to financing for the birth of new young entrepreneurs," he said.
In the proposed scheme, the Youth Development Bank will apply a competitive interest of around 2 to 3 percent above the BI Rate to remain healthy in business while remaining affordable for young business actors.
Anthony also emphasized the importance of the curation process so that funding is targeted and given to businesses that have prospects and real economic impact.
He added that the process would involve the government and business associations to ensure the quality and sustainability of the funded business.
In addition, Anthony highlighted the still existing gap in access to capital between entrepreneurs in big cities and regions, because many young entrepreneurs in the regions have great potential, but have not received adequate financing support.
Through this idea, he hopes that HIPMI will be able to become a driving force for the birth of new economic centers in various regions as well as accelerating the regeneration of national entrepreneurs.
Anthony assessed that Indonesia needs more productive young entrepreneurs to face global economic challenges, demographic bonuses, and acceleration of economic digitization.
"If access to financing is only enjoyed by certain groups, then new entrepreneurs will be difficult to be born. In fact, Indonesia needs more young entrepreneurs to create jobs and strengthen the national economy," he said.
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