INDONESIA ENTREPRENEURSHIP CONDITION

Entrepreneurship is the most famous word that we always heard in the recent time. Increasing of young population in 2030 and internet users also become masive among the people, It makes Indonesia become a country who has big potential to increase its level of entrepreneurship. The government of Indonesia has been proven its commitment to support the spirit of entrepreneurial by established Gerakan Kewirausahaan Nasional (GKN) on February 2, 2011. The objective of this movement is to decrease unemployment and poverty in Indonesia. I tell you, the unemployment rate among educated workers generated by high school and college graduates are still high. The majority of young people in Indonesia are still not interested to become entrepreneurs, due to the lack of a national education system to provide soft-skill knowledge, the culture in society and the parents do not wish their children to do business after they graduated from schools or universities.

Based on data from the Ministry of Education and National Culture, interest in graduate education institutions for entrepreneurship is very low, which is for high school graduates (22.63 %) and higher education (6.14 %). While those who had elementary and junior high schools have the autonomy to try it yourself (32.46 %). There is a tendency for young high school education (61.87 %) and graduate (83.20 %) choose to become workers or employees than to be entrepreneurs. This means that the higher a person’s education level, the lower the self-reliance and motivation to become entrepreneurs. Indonesia currently has approximately 3,707,205 or 1.56 % of the total population of entrepreneurs in Indonesia. Ideally, to achieve progress and national walfare, it takes at least as much as 2 % of entrepreneurs of the population. As an illustration of the economic progress of countries like Singapore, Malaysia, Thailand, South Korea and the United States is determined by the number of entrepreneurs  from 2.1 % up to 11.5 % of the country’s population[1].

As we see the current condition, that the level of entrepreneurs in Indonesia is still far away from the ideal. The basic needs regarding to boost the spirit of entrepreneurship and to generate new entrepreuners in Indonesia are full support from the government, education and motivation from all related parties. Here I will explain what things that have taken in order to increase the spirit of entrepreneurship in Indonesia:

The first is Support From The Government. As signed the agreement for ACFTA and AFTA by the government. Indonesia has a big challange to compete with other countries in Southeast Asia. Even on the paper, Indonesia is the biggest economic in this area. Still, we do not have many entrepreneurs to prop the economics on the whole. Without fully support from the government such as simplify to facilitate licensing to build a new business, simplify to get business capital and also minimize the illegal levies, it will be hard to compete in ASEAN and to generate new entrepreneurs in this country.

Secondly is Education. As I mentioned before, the education system in Indonesia does not support and encourage the students to be an entrepreneurships. The system of national education is still focus to prepare its alumunus to be a worker not entrepreneur. It is proven by high amount of of unemployment and low of entrepreneurs from graduates of Indonesia. The system has to be changed to the better system. That encourage entrepreneurial spirit by give the students softskills in the entrepreneurship, give them capability and knowledge how to build a business and challange them to change their mind after graduation. Entreprenerial education is not only responsibility of universities or school, it is also responsibility of all parties. So, I think, the students also have to gain the knowledge of entrepreneurship from business forums. Nowadays, so many entrepreuneurship forum in offline or online places. Those kind of forums will give huge impact in order to increase the knowledge and awareness of spirit of entrepreneurships and will encourage young people to be entrepreneurs.

And the last is Motivation. The motivation has to be clear. Actually, some of graduates/young people in Indonesia has huge potential to be entrepreneurs. However, the main problem is they do not have enough motivation to start their own business. The motivation activities can be conducted by provide them opportunities to show their idea in the businee competition, sharing knowledge by success entrepreneurship in this country to the  young people via seminar and training, and many more. Those events can be managed by universities, government and other parties, in order to give and to boost the spirit of entrepreneurship and then they will do their business immediately.

As a conclusion, Indonesia is the biggest economic country in the Southeast Asia, moreover Indonesia has big opportunity in ACFTA and AFTA agreement. The challange of the Indonesia Government  is to support the young people to build their own business in order to prop the economic to compete with other countries in this world. The things that  Indonesia has to do  is to fully support by the government by simplify to facilitate licensing to build a new business, simplify to get business capital and also minimize the illegal levies, without it, we will be hard to compete in ASEAN and to generate new entrepreneurs in this country. Make the appropriate education system, focus to give skill in entrepreneurships and the last is always spread motivation for Indonesian young people to start their own business, it has to be supported by all related parties. 

 

[1] http://www.spiritgkn.com/index.php?pilih=hal&id=8 

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