Having a business has been trending among young people for the past several years, which eventually led to an increasing number of millennial entrepreneurs. Ririn Kadariyah, President Director of Government Investment Center (PIP), stated that now 17% of PIP financing debtors are at the age of 20 to 29.
On the other hand, the surge of new businesses, especially Micro, Small and Medium Enterprises (MSMEs), has a pivotal role in resurrecting and growing Indonesia’s economy post-pandemic, according to Bahlil Lahadalia, the Minister of Investment/Chairman of BKPM. He added that the number of young Indonesians who opted to be an entrepreneur needs to be pushed to 12% ideally. The Ministry of Investment/BKPM continuously facilitates investors and encourages them to join forces with local entrepreneurs and MSMEs. However, MSMEs have an essential role towards economic inclusivity, which ultimately leads to evenly distributed economic growth as well as forging a competitive and productive business environment.
Bahlil Lahadalia presses the importance of turning informal MSMEs become formal, thus granting more accessible funding and maximum government incentives. Based on Law No 11/2020 on Job Creation, MSMEs can enjoy a simpler permit process, access free certificate, and lower procedural fees. With only an ID card (KTP) and business certificate from neighborhood-level officials (RT), business owners can receive a Business Registration Number (NIB) through Online Single Submission (OSS). The NIB will ease the process on submitting business license registration, Indonesian National Standards (SNI) label application, and halal certification request. In addition, article 92 of The Job Creation Law grants simplified tax administration for MSMEs to apply for financing from the central government. Bahlil Lahadalia claims that the restoration of Indonesia’s economy starts from consumption. He adds that when MSMEs is optimized, it can provide demand, steady income, and at least 120 million job opportunities.
One company that helps create jobs is Hypefast. They’re a local e-commerce aggregator that has already teamed up with more than 25 local brands. Launched in January 2020, they claim to be the pioneer of the House of Brands business model in Southeast Asia. Its Founder and CEO, Achmad Alkatiri, explained that the idea of Hypefast came from the founders’ experience with local e-commerce brands as well as a tight grasp of the various obstacles that those brands are facing. The company is determined to develop an e-commerce-based ecosystem together with local brands.
To facilitate young Indonesian entrepreneurs, The Ministry of Investment/BKPM provides simple and practical access for MSMEs to apply for funding from banks in the form of business loans through the Online Single Submission Risk-Based Approach (OSS-RBA). The system is deemed more transparent and provides faster permit management, which is hoped to help increase investment numbers and value.