Vice President Targets Capai Entrepreneurship Ratio 3.95 Percent In 2024

JAKARTA - Indonesian Vice President Maruf Amin targets to increase the entrepreneurship ratio by 3.95 percent by 2024.

Based on data from the Ministry of Cooperatives, it was noted that the number of MSMEs in Indonesia reached 64.2 million business units, but this figure has not been directly proportional to Indonesia's entrepreneurship ratio which is still low or has only reached 3.47 percent.

This figure lags far behind neighboring countries, such as Thailand which reached 4.2 percent, Malaysia 4.7 percent, and even Singapore which has reached 8.7 percent.

"We hope that by 2024 Indonesia will be able to increase the entrepreneurship ratio to 3.95 percent, increase financial access inclusion by 90 percent, create 30 million MSMEs that go digital and increase the contribution of MSME exors by 21.6 percent," said the Vice President in a press statement, Tuesday, December 27.

He explained that the biggest obstacle faced by MSMEs is still about the difficulty of getting access to financing and capital.

Not only that, he continued, the obstacles that are also faced are the difficulty of accessing markets, marketing and product promotions as well as access to raw materials or production tools.

"Therefore, I ask for an increase in capital assistance through the distribution of people's business loans (KUR) with a special KUR scheme based on business groups or clusters through the KUMKM revolving fund distribution agency (LPDB)," added Ma'ruf Amin.

He continued, cluster-based KUR financing is a solution for people's business units that have not been integrated by conventional banking services.

"For the distribution of community-based KUR or business groups that have collaborated with aggregator, offtaker and validater as guarantor, I advise that it be carried out with full responsibility, accountability and transparency so that the community enjoys the benefits and guaranteed security of its business," explained Ma'ruf Amin.

He also invited all business actors and stakeholders to develop entrepreneurship in the community.

"Entrepreneurship events need to be introduced from a young age by instilling innovative, creative and independent, honest, and never giving up on the education curriculum," he concluded.