**Jakarta** – The Ministry of Cooperatives and SMEs (KemenKopUKM) is partnering with various stakeholders and collaborators to raise the entrepreneurship ratio to 3.95 percent by 2024—aiming to produce entrepreneurs who are capable, innovative, and competitive in the global arena—including through the Entrepreneur Hub platform.

The Ministry of Cooperatives and SMEs initiated the Entrepreneur Hub platform in collaboration with the DKI Jakarta Provincial Agency for Industry, Trade, Cooperatives, and SMEs; the Tangan Di Atas community; and various higher education institutions—including Bina Nusantara University, State University of Jakarta, Mercu Buana University, Podomoro University, and Trisakti University—as well as private sector entities such as BTPN, PVG, and Rumah Zakat Indonesia.

Minister of Cooperatives and SMEs Teten Masduki stated that Indonesia needs to cultivate capable entrepreneurs; although the number of MSMEs is substantial—reaching 64 million—the majority still operate at the micro-enterprise or subsistence economy level.

“What truly needs to be cultivated is the desire to become an entrepreneur. In developed nations, the entrepreneurship ratio reaches 10 to 12 percent. Indonesia must be capable of producing highly educated young people who enter the business world—encouraging youth and educated individuals to engage in business—so that our entrepreneurs can compete on the global stage,” said Minister of Cooperatives and SMEs Teten Masduki during the ‘Entrepreneur HUB Jakarta’ event, themed ‘Developing an Entrepreneurship Ecosystem to Realize Established Entrepreneurs and Innovative, Sustainable Businesses,’ in Jakarta on Wednesday (April 5).

Furthermore, according to Teten, the Ministry of Cooperatives and SMEs has set an ambitious target of creating one million new entrepreneurs by 2024 as part of the journey toward becoming a developed nation. However, there remain several areas requiring attention and hard work to propel Indonesia to developed-nation status.

“We have also been fostering the development of an entrepreneurial ecosystem—specifically, one that is digitally connected—to make it easier for MSMEs to access financing. MSMEs are also being linked to industrial supply chains, serving as suppliers of raw material components and finished goods. This ensures that MSMEs are not marginalized but remain integrated into industrial supply chains and become part of the industrialization process,” said Minister Teten.

He noted that currently, only about 7 percent of MSMEs are integrated into industrial supply chains. Therefore, it is necessary to foster the ecosystem through the establishment of “KUR Clusters.” Connecting these businesses to supply chains via digital ecosystems will make it easier for banks to grant loans.

“This includes encouraging the consolidation of small businesses into cooperatives. It is difficult for micro-enterprises to scale up if they operate in isolation; joining a cooperative facilitates their growth and development. Government procurement, with 40 percent allocated to MSME products, also forms part of the ecosystem that ensures MSMEs have a captive market,” he said.

According to the Minister of Cooperatives and SMEs, financing remains a major issue due to the significant credit gap; bank lending to MSMEs stands at only around 21 percent, even though MSMEs generate 90 percent of jobs. “This needs to be addressed. Banks are wary of MSME business risks due to high Non-Performing Loan (NPL) rates. We can create an ecosystem to minimize this financing gap,” he said.

The Minister of Cooperatives and SMEs added that the Ministry continues to encourage MSMEs to go digital; MSMEs facing asset-related challenges will be matched with major initiatives that facilitate financing through credit scoring. It is hoped that an ecosystem will be fostered through the establishment of business incubators across various regions and university campuses.

“We hope that this Entrepreneur Hub will remain practical, innovative, and sustainable, while also increasing the number and role of stakeholders in entrepreneurship development—ultimately raising Indonesia’s entrepreneurship ratio,” said Minister Teten.

On the same occasion, Siti Azizah, Deputy for Entrepreneurship at the Ministry of Cooperatives and SMEs (KemenKopUKM), explained that the Entrepreneur Hub represents a synergy among various parties that has successfully curated 100 competent MSME players; these individuals were nominated by the DKI Jakarta Provincial Industry, Trade, Cooperatives and SMEs Agency, the Tangan Di Atas community, and five universities.

This activity will span three months, commencing with a kick-off event from April 4 to 6, 2023. The kick-off agenda includes training and mentoring for participants, who will be equipped with material across 11 continuous modules; these modules will be delivered in five main sessions on a phased basis. The event is fully supported by BTPN, PVG, and Rumah Zakat Indonesia.

Regarding the matchmaking forum, Azizah stated that participants met with successful entrepreneurial partners to build a business ecosystem, enabling them to learn or establish collaborations aimed at business development.




“This forum will also facilitate the onboarding of participants’ products onto digital partner platforms—such as PaDi UMKM, SOE platforms, startups, and e-commerce sites—as well as the LKPP e-catalog,” said Azizah.

Next is the “Meet the Investor” forum, where participants will be introduced to potential investors and deliver pitches with the aim of securing financing support or long-term investment.

Azizah detailed that each session would be facilitated by the relevant stakeholders. These include the Session I training facilitated by the Ministry of Cooperatives and SMEs, the Session II training facilitated by Podomoro University, the Session III training facilitated by Mercu Buana University, and the Matchmaking Forum facilitated by the Assistant Deputy for Information Technology Development and Business Incubation (PTIIU).

Next are the Session IV training facilitated by the DKI Jakarta Industry, Trade, and Cooperatives & SMEs Agency; the final mentoring forum facilitated by Trisakti University; and Session VII—incorporating a “Meet the Investor” event—facilitated by the Assistant Deputy for Financing under the Deputy for Entrepreneurship.

“Entrepreneur HUB Jakarta is part of the broader Entrepreneur Hub program series. This program is a flagship initiative of the Deputy for Entrepreneurship, primarily aimed at fostering young Indonesian entrepreneurs through the development of regional business ecosystems,” he said.

This is being carried out in accordance with the mandate of Presidential Regulation Number 2 of 2022 concerning National Entrepreneurship Development, as well as an effort to achieve the national entrepreneurship growth target of 3.95 percent by 2024.

South Jakarta Deputy Mayor Edi Sumantri commended the Ministry of Cooperatives and SMEs for initiating the Entrepreneur Hub, which he considers highly beneficial for MSME players, particularly regarding business development through investment.

“This aligns with the DKI Jakarta Provincial Government’s efforts to foster integrated entrepreneurship through JakPreneur—Jakarta’s entrepreneurship development platform—by facilitating registration, training, mentoring, licensing, marketing, financial reporting, and access to capital,” said Edi.

Currently, DKI Jakarta, through JakPreneur, has supported 300,000 MSME members. Moving forward, the JakPreneur program is expected to synergize with Central Government initiatives—specifically those led by the Ministry of Cooperatives and SMEs (KemenKopUKM)—including the Entrepreneur Hub, which involves 100 MSMEs.

**Jakarta, 5 April 2023**

**Public Relations of the Ministry of Cooperatives and SMEs**

Source: https://kemenkopukm.go.id/read/kemenkopukm-berupaya-lahirkan-wirausaha-andal-melalui-entrepreneur-hub