SME and Entrepreneurship Policy in Indonesia 2018

Main abbreviations

 

ABDSI	Association of Business Development Services Indonesia
AiBI	Association of Indonesian Business Incubators
APEC	Asia-Pacific Economic Co-operation
AEC	ASEAN Economic Community
ASEAN	Association of South-East Asian Nations
BAPPENAS	Badan Perencanaan Pembangunan Nasional (Ministry of National Development Planning/National Development Planning Agency)
BDS	Business Development Services
BIK	Biro Informasi Kredit (Public credit bureau)
BPPT	Badan Pengkajian Penerapan Teknologi (Agency for the Assessment and Application of Technology)
BPS	Badan Pusat Statistik (Indonesian Central Bureau of Statistics)
BEKRAF	Badan Ekonomi Kreatif (Creative Economy Agency)
BEP	Beginner Entrepreneur Programme (Program Bantuan Dana Bagi Pengembangan Wirausaha Pemula)
BKPM	Badan Koordinasi Penanaman Modal (Indonesia Investment Co-ordinating Board)
BPKP	Badan Pengawasan Keuangan dan Pembangunan (Finance and Development Supervisory Agency)
BRI	Bank Rakyat Indonesia (People’s Bank of Indonesia)
CCCs	Commercial Credit Circuits
CERNE	Reference Centre for Support of New Ventures (Brazil)
CGCs	Credit Guarantee Companies
CPNE	Coaching Programme for New Exporter
GDP	Gross Domestic Product
GEM	Global Entrepreneurship Monitor
IBT	Inkubasi Bisnis Teknologi (Technology and Business Incubator)
IDX	Indonesia Stock Exchange
IMK	Survei Industri Mikro dan Kecil (BPS Survey of Micro and Small Enterprises)
IPO	Initial Public Offering
IPR	Intellectual Property Rights
IUMK	Micro and Small Business License Programme
IWAPI	Indonesian Women’s Business Association
KADIN	Kamar Dagang dan Industri (Indonesia Chamber of Commerce and Industry)
KKU/KKN-PP	Business Lecture Programme
KUR	Kredit Usaha Rakyat (People’s Business Credit Programme)
KURBE	KUR Financing for Export-Oriented SMEs Programme
LAKU-PANDAI	Inclusive Finance Framework (under the responsibility of OJK)
LKPP	Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (Government Goods and Services Procurement Agency)
LGUs	Local Government Units
LPDB	Lembaga Pengelola Dana Bergulir (Revolving Fund Management Agency)
MCA	Millennium Challenge Account (Indonesia Procurement Modernisation Project)
M-CORE	Micro-enterprise Competitiveness Rating for Enhancement (Malaysia)
MKU	Youth Entrepreneurship Apprenticeship Programme
MNEs	Multinational Enterprises
NCs	Negosyo Centres (Philippines)
NPLs	Non-Performing Loans
NSDC	National SME Development Council (Malaysia)
OECD	Organisation for Economic Co-operation and Development
OJK	Otoritas Jasa Keuanga (Financial Services Authority)
PELAKU	Centres for Education, Consumer Services and Financial Access (under the responsibility of OJK)
PKBL	Partnership Programme with Small Business
PLUT-KUMKM	Pusat Layanan Usaha Terpadu Koperasi & UMKM (Integrated Business Services Centres for Co-operatives and SMEs)
PMR	Product Market Regulations
PPBT-PT	Perusahaan Pemula Berbasis Teknologi – Perguran Tinggi (University-based business incubator)
PPP	Purchasing Power Parity
SCORE	SME Competitiveness Rating for Enhancement (Malaysia)
SDBS	Structural and Demography Business Statistics (OECD)
SEBRAE	Brazilian Micro and Small Enterprise Agency
SKP	Sentra Kewirausahaan Pemuda (Youth Entrepreneurship Centres)
SME Corp. Malaysia	SME Agency (Malaysia)
SMEs	Small and Medium-sized Enterprises
SMI	Industry-based Small and Medium-sized Enterprises
SOEs	State-Owned Enterprises
STRI	Service Trade Restrictiveness Index (OECD)
SYB	Start Your Business Programme (ILO)
TEA	Total Early-stage Entrepreneurship Activity (GEM database)
TNP2K	Tim Nasional Percepatan Penanggualangan Kemiskinan (National Task Force for the Acceleration of Poverty Reduction)
VET	Vocational and Educational Training
WBES	World Bank Enterprise Survey
WMP	Wirausaha Muda Pemula (Young Entrepreneur Programme)
WPSMEE	Working Party on SMEs and Entrepreneurship

Basic statistics of Indonesia

Land, people and electoral cycle

Population
	Indonesia	OECD average		Indonesia	OECD average
Population (million) (2017)	264.0		Population density per km2 (2017)	145.725	37.73
Under 15 (%)	27.4	18.0	Life expectancy (years, 2015)	69.1	80.4
Over 65 (%)	5.3	16.8	Men	67.0	77.7
Latest 5-year (2013-2017) average population growth (%)	1.3	0.6	Women	71.2	83.1
			Population of largest metropolitan areas (million people, 2018)
			Jakarta	10.86
			Surabaya	2.95
			Bandung	2.47
			Latest general elections	April 2014
Economy
Gross Domestic Product (GDP) (volume, 2017)			Value added shares of GDP (%, 2017)
In current prices (trillion IDR)	13 589		Primary sector (including mining)	21.5	2.5
In current prices (billion USD)	1 016		Industry including construction	33.1	26.9
Latest 5-year (2013-2017) average GDP growth (%)	5.1	2.1	Services	45.4	70.6
Per capita (000 USD PPP)	11.7	42.2
General government
Revenue (% of GDP, 2016)	15.3	39.1	Government net borrowing (% of GDP, 2016)	2.4	1.6
Expenditure (% of GDP, 2016)	17.7	40.7	Net government interest payments (% of revenue, 2016)	6.64	4.62
External accounts
Exchange rate (IDR per USD, 2017, average)	13 381.5		Main merchandise exports (balance-of-payments basis) (% of total, 2016)
Value in USD of 1 million IDR (2017 FX rate)	7 473.0		Mineral products	21%
Value in USD of 1 billion IDR (2017 FX rate)	74 730.0		Animal and vegetable products	13%
PPP for GDP (national currency for USD, 2017)	4 190.5		Machines	12%
Exports of goods and services (% of GDP, 2017)	20.4	27.9	Main merchandise imports (balance-of-payments basis) (% of total, 2016)
Imports of goods and services (% of GDP, 2017)	19.2	27.3	Machines	27%
Current account balance (% of GDP, 2017)	-1.7	0.4	Mineral products	14%
			Chemical products	10%
Labour market, skills and innovation
Employment rate for 15-64 year olds (%, 2017)	66.1	67.8	Unemployment rate (age 15 and over, %, 2017)	5.6	5.9
Men	80.0	75.5	Youth (age 15-24, %, 2017)	17.8	11.9
Women	52.1	60.1	Tertiary educational attainment 25-64 year olds (%, 2015)	9.8	35.7
Participation rate for 15-64 year olds (%, 2017)	70.0	72.1	Gross domestic expenditure on Research and Development (R&D) (% of GDP, 2013)	0.1	2.3
Men	84.8	80.2
Women	55.1	64