Innovative Startup Accelerates Indonesia To Become A Developed Country, Minister Teten: Needs Collaboration

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said that the creation of quality start-ups could accelerate Indonesia to become a developed country.

"Therefore, this is a priority for the government to encourage Indonesia's digital economic potential towards developed countries in 2045. So it is important to collaborate and synergize between ministries/agencies (K/L) in realizing this," said Minister Teten in a press release, Saturday, August 12.

Minister Teten emphasized that currently the government is pushing the entrepreneurship ratio to reach 3.95 percent in 2024. His party is also actively collaborating with all parties, K/L, private incubators, and campuses in creating new startups.

Entrepreneur Hub is prepared in producing innovative and technological entrepreneurs and new start-ups.

"We are lucky, currently in Indonesia there are 2,600 start-ups and the sixth largest in the world. Indonesia has the best embryos to develop to produce start-ups to quality entrepreneurs," he said.

Kemenkop UKM together with the Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) held the Road To Indonesia Startup Ecosystem Summit 2023. The event is part of a series of National MSME Day celebrations which will take place on 10-13 August 2023.

The opening of the Road To Indonesia Startup Ecosystem Summit 2023 (ISES 2023) was attended by Coordinating Minister for SMEs Teten Masduki, Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno, Minister of Trade (Mendag) Zulkifli Hasan, Minister of Communication and Information Budi Arie Setiadi, and Mayor of Surakarta Gibran Rakabuming Raka.

Teten continued, one of the drivers of the birth of quality start-ups is to connect it to venture capital. He said South Korea (South Korea) and Japan had opened up opportunities for cooperation with Indonesia in the development of start-ups.

"We also open the door. I am optimistic that the import and downstream substitution policies can be a great opportunity for business actors, including start-ups. Therefore, we have connected potential start-ups with foreign investors," he said.

For this reason, he continued, campus incubators must be able to produce innovation and technology-based entrepreneurs. Moreover, currently Indonesia has been invaded by foreign products whose prices are below standard, making it difficult for domestic business actors to compete.

"In fact, the national economy of 53 percent is driven by household consumption. If our local expenditure production continues to be strengthened, the domestic economy is also strong. So, quality MSME products must be protected and prepared," he added.

Menkop UKM Teten does not deny that the main problem of start-up business growth is in terms of financing. Therefore, his party continues to promote to banks to implement credit scoring, so that these startup business actors are no longer twisted about collateral when they are going to access financing.

"This financing must have innovation. It turns out that in 145 countries credit scoring has been applied. So, it is not an asset that is used as collateral, but a digital track record regarding business health which is an assessment," he said.

In the future, said Teten, his party will continue to coordinate with the Financial Services Authority (OJK) and Bank Indonesia (BI) regarding the above. "So, what must be encouraged is banking innovation which is still old," he said.

On the same occasion, Coordinating Minister for Maritime Affairs and Investment (Menkomarves) Luhut Binsar Pandjaitan gave support and appreciation in the efforts of the Kemenkop UKM which continues to encourage the birth of quality MSMEs and start-ups.

Luhut said that the existence of start-ups must be supported by the government. President Joko Widodo (Jokowi) also pays great attention to efforts to develop start-ups so that in the future they can develop into unicorns, even decacorns. So, this starts with support from the capital side and market access.

"It is necessary to collaborate with all elements of society. Commitment to follow up in building a start-up ecosystem in Indonesia. Indonesia, which occupies the sixth largest position in the number of startups, is something we need to be proud of," he said.