Jakarta. The Small and Medium Enterprises (SME) Ministry has achieved an entrepreneurship ratio of 3.35 percent among Indonesia's 149 million workforce at the end of President Joko "Jokowi" Widodo's tenure, doubling the percentage compared to when he first took office. However, this still falls short of the 4 percent target set for 2024.

At the start of Jokowi's administration in 2014, the entrepreneurship ratio was around 1.65 percent. Since then, it has increased, with the ratio recorded at 3.21 percent in 2019. The Covid-19 pandemic caused a sharp decline to 2.93 percent, but the ratio rebounded to 3.04 percent in 2023.

Siti Azizah, Deputy for Entrepreneurship at the Ministry, said that President Jokowi has mandated three key focuses for developing entrepreneurship in Indonesia: National Entrepreneurship Development (PKN), the digital transformation of SMEs, and the establishment of a single database for cooperatives and SMEs.

“To become an advanced nation, the minimum entrepreneurship ratio must reach 4 percent. We hope that new entrepreneurs emerge by design rather than by accident, with solid business plans to foster growth and create new economies,” Siti Azizah said on Tuesday.

In line with President Jokowi's directives, several policies and programs have been implemented to foster entrepreneurship. There are five phases of innovation aimed at developing entrepreneurship in Indonesia from 2020 to 2024.

The first phase, which began in 2019, focused on overcoming challenges. During the early leadership of SMEs Minister Teten Masduki, the entrepreneurship ratio stood at 3.21 percent, with a positive growth rate of 1.71 percent.

The second phase, described as navigating difficult situations, occurred during the Covid-19 pandemic in 2020, which severely impacted the business sector and caused the entrepreneurship ratio to drop to 2.93 percent, with business growth falling by 7.16 percent.

The third phase (2020-2021), labeled as adapting crisis into innovation, saw the ministry restructure and establish a new department focused on promoting national entrepreneurship.

Siti Azizah referred to the fourth phase (2021-2023) as a reset, aiming to restore hope. During this time, regulations were strengthened through Presidential Regulation No. 2 of 2022 on National Entrepreneurship Development (PKN) 2021-2024.

In this phase, various initiatives aimed at designing entrepreneurs began to be implemented, such as Entrepreneur Hubs, Entrepreneur Development programs, Business Incubation, and the Entrepreneur Financial Fiesta (EFF). The EFF program seeks alternative financing options beyond traditional bank loans, including Securities Crowdfunding (SCF) and venture capital. Meanwhile, the Entrepreneur Hub (EHub) is designed to help businesses expand their networks.

“As a result, by the end of the Reset Phase, the entrepreneurship ratio reached 3.04 percent, with a significant increase in positive business growth of 9.31 percent,” Siti Azizah noted.

The fifth phase focuses on sustainability, aiming to propel entrepreneurs and startups onto the global stage (2024). The Ministry has initiated support for the Startup Go Global program, intended to create competitive startups that thrive not only in domestic markets but also in international arenas. This includes facilitating selected Indonesian startups to learn about development in Australia, South Korea, Japan, and the Netherlands.

“The entrepreneurship ratio achievement at the final phase of this administration stands at 3.35 percent, with positive business growth at 2.05 percent,” Siti Azizah concluded.