ENTREPRENEURSHIP IN INDONESIA

"... At this rate of unemployment has reached 45.2 million. Of this amount,

about 2.65 million people unemployed educated college graduates. ... "
www.mail-archive.com/ msg00090.html

"... The open unemployment rate, 65.71% can be said that the educated unemployed educated ...
www.jurnalindonesia.com/Current/04TinjauKhusus1.htm

"Data Sakernas last four years (CBS 1997-2000) showed that the number of unemployed graduates of all levels of education increased from 4 million in 1997 to 6 million in 2000. Number of unemployed high school graduates increased from 2.1 million in 1997 to 2.5 million people in 2000. The increase in the number of unemployed was also the case in college, not less than 250 thousand unemployed graduates every year, 120 thousand graduates of Diploma III, and 60 thousand graduate diploma I and II. " www.pdk.go.id / serba_serbi / Strategic / chapter-II.htm

Ah, I scare you with the numbers above? No, no, do not you think I meant. I just want you to see the facts. So we face in education. Each year just to produce the educated unemployed?

I just wanted you sit and think for a moment and reflect on "The future is what you want?" What is after you pass your mortgage Diploma everywhere and become the servants and settled there permanently until his retirement next? Then complain directly over your life because what you bring home to your wife and children never meet the need of your life, even the most basic though. Or do you immediately rise your degree and follow those who have been successful "without a degree." Building a world of dreams and your future where you want to be? Build your own efforts, initiated, grow, expand and mewariskannya to your grandchildren. Yes, it all depends on you!

.... Currently, the number of SMEs in Indonesia reached 99.99 percent of the total labor productivity, and contribute to GDP by 59%. "

www.sme center.com/ccom/news/news-01-250700-01.htm

... ... .. Of the total workforce productive, and contributing to GDP amounted to 59.36 percent. UKM Indonesia is also a major contribution ... ..

www.kompas.com/business/news/0007/25/24.htm

See ya! How small businesses, selling nasi padang, chicken balls just off the street traders, street vendors, operators tempeh, chicken sellers real-real cuts to give them something meaningful to the state.

The top of the crisis in 1998 - 2000, contributor to Gross Domestic Product SME on the (GDP) reached 60% more. Data dikementrian Cooperatives and SMEs SME konntribusi mention of Wealth GDP in 2003 was 56.44% and is predicted to rise in 2004 to 57.11%. While the contribution to the eksporpun expected to increase from 21% to 25%. In other words, SMEs are still reliable as a motor of the economy.

Unfortunately, this hope seems contrary to the attention of the government. Because every year the government budget allocated to the SME sector, only 6 - 7% - the rest just mengerojok to big business. Though the business giants, the conglomerate that runs a lot of money but some people kekantong they rushed out of the country.

... Henderson Death increasingly difficult for government efforts to investigate Rp 2.6 trillion
state losses due to misuse of the BLBI ...
www.polarhome.com/pipermail/nusantara/2003-February/000834.html

... CPC investigation showed that the potential loss of the country reached Rp 138 trillion due BLBI funds ...
www.geocities.com/faaktor/News-Doc/20000828-Rbs.html

and during the period 1996-1997 was estimated capital flight
U.S. $ 80 billion in foreign exchange have been abducted to foreign countries
www.geocities.com / ypenebar / globalization / Swasono-Sritua.html

Total private sector debt as of September Indonesia
In 2000 recorded 68.2 billion U.S. dollars.
www.kompas.com/kompas-cetak/0308/06/finansial/474903.htm

SME On the Crisis - Late 1997 Until Present

The crisis that occurred in Indonesia since the middle of 1997 until now has not shown signs of ending. This crisis has also resulted in changing the economic position of the perpetrator. Business bankruptcy because of large one at that imported raw materials increased drastically, the cost of installment debt rose as a result of the rupiah against the dollar is declining and fluctuating. The banking sector also slumped aggravate the industrial sector of the capital. Many companies are no longer able to continue because of high interest rates. In contrast to most SMEs are to survive, and even tended to increase.

Recent data from the Ministry of Cooperatives and Small and Medium Enterprises (Menekop & MCP) shows that in 2000, there were about 38.99 million Small to average sales per year less than Rp.1 billion, or approximately 99.85% of number of companies in Indonesia. In the same year, there were 55,061 companies from the category of Medium, with an average annual income of more than Rp.1 billion but less than Rp.50 billion, or about 0.14% of total units.

The large increase in population each year to its own problems for the provision of employment opportunities. Big business could not absorb all job seekers. Inability to create great business opportunities due to the great work it is generally business groups are relatively capital intensive, while labor-intensive SMEs realtif. Besides Big Business generally require workers with higher formal education and work experience that is enough, while some SMEs less educated workers.

Data from Menegkop & SMEs shows that in 2000, more than 66 million people work in Small Business, or approximately 99.44% of total employment in Indonesia. Meanwhile, in the form of contribution to GDP, SMEs accounted for 40% in 2000 compared to 38% in 1997.

The top of the crisis in 1998 - 2000, contributor to Gross Domestic Product SME on the (GDP) reached 60% more. Data dikementrian mention of Cooperatives and SMEs SME konntribusi terhdap GDP in 2003 is still in the range of 56.44% and is predicted to rise in 2004 to 57.11%. Meanwhile eksporpun konntribusinya the value expected to increase from 21% to 25%. In other words, SMEs are still reliable as a motor of the economy.

Unfortunately, this hope seems contrary to the attention of the government. Because every year the government budget allocated to the SME sector, only 6 - 7% - the rest just mengerojok to big business. Though the business giants, the konnglomerat much public money to run even the most rushed kekantong them abroad.

There are opportunities in Any

When the crisis hit Asia in the year 1997, many people predicted the region would collapse. What has happened to the fastest growing economies in the world that it suddenly became the most menggerikan place for investment. Many blame the crisis directly comment. Economists blame the economic policies. Financial and banking analysts blamed the weakness of financial systems and many other analysts who commented further.

Chinese character for crisis (see below) read wei-ji, and has two meaning "danger - danger" and "opportunity - opportunity."

Peak of the crisis that hit Indonesia causing panic and riots everywhere. Exorbitant prices rise, dollar craze, looting everywhere, the scarcity of food, a massive rush to the bank. And the situation is fairly long.

But, no! Apparently there is still a ray of hope among the ruins of destruction. Several small-pak tam still rigid. Even some of them even got a blessing because of the financial crisis, which overturn the battered rupiah to the policy gap. They are mostly small businesses who conduct business in the conventional, full of carefulness, discipline, did not sell the debt or to break the bank, so the crisis does not cause them to disintegrate immediately. They could still survive, so even if not free, and the pressure, they still have a chance to adjust and repair as necessary. They are also less dependent on imported raw materials. By doing so, they would not be too much impact soaring production costs.

Part of their livelihood and even increased, because the business is export oriented. By "support" the crisis, the price of their products is very competitive, and payments received in the form of dollars cause profits to be doubled.

Last question is: "What is the conclusion? How to determine the next course of action in a knisis this? "

With statements like that suggested above, there is no more appropriate conclusion is that a good small business is the answer to the most "fit" to resolve the crisis. Especially if its business is export oriented with local materials, then it would be the ideal solution for people of Indonesia to become a nation that is economically strong, not fragile in the face of monetary turmoil. Of course, if supported by policy and the education system the true and the government. The government is in fact the net from the elements of corruption.

Here is an excerpt about the author goes one small example of the success of Indonesia in the face of monetary crisis.

During the Asian financial crisis, it was found that Taiwan is not particularly affected. The reason: the economy is sustained by a large number of small and medium enterprises and factories in the countryside. The same thing happened in the U.S.. The number of jobs created by small and medium perusaahaan far exceeds that created by a company in the Fortune 500.

Called the "Japanese model" in which the economy depends only on a few large companies (keiretsu) proved less defensive. Countries that follow this model, such as Korea (chaebol), Indonesia, Thailand, Malaysia, and Singapore, all of them hit very hard during the crisis. In terms of the public, is very risky to put all eggs in one basket. In changing times, people have to put more of their eggs in one basket - to spread the risk. That principle is used by most insurance companies. When we observe, for a big storm, many of the giant tree uprooted and toppled or broken roots. However, only a small bent grass exposed to the wind. Now there is a tendency among large companies to break itself into an organization that consists of many small separate organizations.

For any kind of entrepreneur the situation there is always a chance. The suffering of one side sometimes it becomes an opportunity for other parties. Still remember when the rapes of ethnic Chinese? At that moment a sudden a lot of people selling pants "anti-rape." The speculators big profit dollars. There are even some fishing operators in the area to pray for the crisis had not passed since menangguk huge profits because most of the buyers abroad.

Now I would like to invite you to look behind the cultural history of our nation in the world of entrepreneurs.
Java Culture and Colonialism

In pre-colonial structure of government that is divided into two, agrarian, such as the Kingdom of Mataram, and secondly, is maritime, which represented the Sultanate of Aceh. The structure of this kind of show that the trade route between the agrarian and maritime government running smoothly, in which the government acts as a supplier of agricultural goods of basic needs. such as rice which is produced by the maritime kingdom, while the government's export-oriented maritime import spices.

The trade does not always mean more prosperity for the people the government level is high. Research shows that some historians. level of farmers' lives when it is a Java subsystem. So who benefited from the bustle of commerce - which in fact resulted in a gain of cash?

According Onghokham, the traders come from the era aristocrats, who held the monopoly rajalah. In the context of Javanese culture, the agrarian kratonsentris, it is not surprising, because the king not only become the monopoly of the trade, but also as owners tanah.Dengan itself, this condition did not cause the mobility of capital and commercial trust. Because at times, the king to take an arable soil (as long as is within the government). In addition, it should be noted that apparently was not a purely commercial habits of Javanese culture. Trade is a competition that is not appropriate to the context of Javanese culture, as "fail" value of harmony - harmony should be noted that the value is not interpreted as a lack of different opinions, but according to them, different opinion better kept and submitted. This is to keep order, although in his heart there is a difference of opinion. Trade is more a result of the interaction of the kings of immigrants.

It is clear that social and cultural environment archipelago in the pre-colonial does not support the emergence of an innovator, a new class in society, namely a strong middle class is funded - to assist in the provision of credit - which is not from among the political elite. In the next period, governments began to get acquainted with the people of Europe. Portuguese who came to the motive of spreading the Catholic faith along with the desire of Muslims to destroy the trade routes of Asia was formed only last a few decades in the archipelago and then back to East Timor until 1976. However, pedudukan Malacca by the Portuguese to bring large impact on trade. The enactment of monopolies resulting decline in international trade. Monopoly is made to cover high risk to be borne by the Portuguese.

After the Portuguese were forced back to the East, came to the Netherlands. Not different from the Portuguese, the Dutch are also implementing a monopoly system. Thus, the archipelago to be internal trade and stimulate international trade and no longer enjoyed. This is an economic blow to the archipelago, especially the kings of Java. But one thing should be noted that the Dutch and Portuguese monopolies previous indirect 'acceptable' political elite. For the Netherlands, Indonesia is not just a producer of raw materials.

Arief Budiman said that capitalism is not like English Dutch oriented industries, but the Netherlands is merkantilis. The Netherlands is the preferred primary commodities and the country towns and then sold on the world market. Socially, the loss of function seems to run Syahbandar and traders who had an important role in international trade.

Position of the broker is given at the Foreign East. This occurs after the year 1799 when VOC went bankrupt and all debt and its assets were taken over by the Dutch government. While VOC only act as a vassal, the Dutch Government to change the structure of Indonesian society into three groups that occupied the colonial government, the middle class is given to kelornpok Foreign East, is among the indigenous population occupied. This discriminatory policy was done deliberately to prevent the emergence of the middle class that are not purely derived from the political elite. With the ground to avoid nepotism and favoritisrne, the Netherlands and prohibit political elite to participate in trade activities. Thus, the elite has never had the political strength of the economy simultaneously. Dutch worried they will appear as 'borgouise' that drive change both politically and ekonorni Indonesia.

Fear in the Netherlands on Dutch borgouise class also looks at the events of the murder, and environmental restrictions on the Chinese people both at Batavia and elsewhere - the Chinese have a pass to go to a place that is not Chinatown. Conditions created by the Dutch to turn the establishment of a strong middle class. This situation has aggravated the situation to bring entrepreneurs.

Once for about two centuries rnenjalankan monopolies, the Dutch government finally opened Indonesia to various effects of international trade. This is equivalent to the growth of industry in the Netherlands. However, very little - even no - the trade effect is felt by the people of the archipelago. The reality orientation of Dutch policy on foreign investment to open only in the interests of Dutch industry itself. Dutch only made as a producer of raw materials as well as industrial products for the Dutch market - the quality is less good than the English or German industrial products. When depression struck the world, Dutch economic conditions worsened, especially since the Dutch impose tariffs to prevent dumping Japanese politics and the use of gold standard monetary system that has been disposed of England and the United States. With this depression, the collapse of primary commodity prices worsened since the Dutch currency appreciation.
Growing Business Entrepreneur of Indigenous

From the above history shows that in addition to Java-agrarian culture to great effect today, the colonial government also led the business climate in Indonesia is not able to bring the middle class is separate from the political elite and financially able to support the existence of entrepreneurs in the economy of Indonesia. However, the statement can not be justified as a tool of low economic growth rate. After 59 years of independence, it is not fair if we keep blaming the Netherlands.

After 1950, Indonesia began to plan the development of planned, as well as political policies needed to support the plan. From the social side, in fact does not change the structure of Indonesian society. Commutation of the role of indigenous peoples who occupied the Netherlands mengggantikan the top, while the sector remains dominated the Chinese economy.

At that time, the need for large funds like us realize that our political elite that they are too dominated bureaucracy without economic power. Strong indigenous entrepreneurs were difficult to find. Therefore, disusunlah policies aimed at developing indigenous business class is better known as Fort Program.

This program is an integral part of the Plan for Economy 1950-1957 urgency to encourage indigenous merchant class in order to compete with foreign importers. The government gave licenses to import only other indigenous entrepreneurs to limit imports of certain goods. With this import license, indigenous businessmen to import goods to the official exchange rate, so the black market exchange rate at that time, indigenous entrepreneurs can gain a large profit.

In the implementation shown that the indigenous people receive special treatment and was not from among the potential kewiraswastawan but from those who have a relationship with the elite poitik. Even worse, they did not establish the true import of the company, but buy a license to import and sell Chinese people who memiiki funding sources and network-intensive businesses. This collaboration is a company called Ali Baba-company, with Ali (indigenous entrepreneurs) to obtain a license while on duty Baba (China) to provide capital and business expertise. However, the program does not fall flat fort. because some employers are still strong pnibumi until now is a result of these programs, such as Soedarpo Sastrosatomo and Hasjim Ning.

Conceptually, the fort was not actually the program that is different from the Dutch colonial government. Preferential treatment given to the Chinese by the Dutch colonial government (by giving the position of the broker) is intended to prevent the emergence of indigenous bourgeois class, and prevent competition between Dutch companies themselves. By itself, the program will not successfully build a fortress strong basis for the emergence of a strong indigenous business class. At the time it was first launched, some circles are not actually agreed. Among others, Mr. Sjafruddin Prawinanegara the time he was Governor of Bank Indonesia.

Sjafruddin Prawiranegana stated that discriminatory policies against foreign investment and capital nonpribumi irrelevant because at that time, the conditions faced by the scarcity of domestic capital. If the time Indonesia excess capital, the expulsion of foreign capital and capital spay nonpribumi really make sense. Sjafruddin analysis ended at the conclusion that the construction of discriminatory policies of national operators will only produce that is not independent operators as well as causes of corruption in the bureaucracy.

Along with the idea of nationalism, economic development period, the reign of Sukarno and then nationalize foreign firms as part of the liberation of West Irian campaign in 1957. From here, the military obtained a strong economic base and the period of military conflict with political parties, Sukarno finally settled by decree on July 5, 1959, begins. It can be said as a military victory for the party-political parties (except that it is getting stronger PKI).

After the New Order regime in power, there is a tendency for the emergence of awareness of the political elite is stuck on a discriminatory recruitment policy. Even so, the military alliance and the bourgeoisie became increasingly powerful group (the military base acquired through the nationalization of the economy). This can be seen with the emergence of entrepreneurs who generally have a close relationship with the generals and the generals, not only from the natives, but a lot of that comes from the Chinese.
Would that be done to encourage the emergence of entrepreneurial leaders of Indonesia to boost economic growth? Learning from experience, especially with the discriminatory policies of foreign-nonpribumi separate indigenous people and capital will not be successful. Error Fortress program decision makers can still be understandable because at the beginning of freedom, of ideas "Indonesianisasi" still rampant, but now our priority is a more equitable economic growth.
It seems that the openness of all parties concerned with the political and economic decision making is not to be bargained again. Openness to foreign capital, especially need to remember that over the years, especially among the Chinese Indonesian entrepreneurs rely heavily on foreign capital. Mr Logic is presented. Sjafruddin Prawiranegara still very relevant. The condition of the scarcity of domestic capital should not be solved by foreign capital and drove nonpribumi. As an analog of this problem, we can look at the history of the rise of capitalism in Europe. In the 16-17 centuries, the Jewish businessman as the Chinese minority in Indonesia, which dominates the European economy. The rise of capitalism is dynamic in the Northern parts of Europe, particularly associated with the receipt of the national bourgeoisie on the integration of Jews into the capital from the national capital. Meanwhile in Southern Europe (Spain and Portugal) that discriminate Jewish businesses showed more backward economy.
Openness is more important regarding the tender process projects are underway. Until now, these processes are still running in the dark in the sense of a closed tender for certain parties. In addition, the government should have better pay attention to human aspects of our investment. Until now, the provision of experts is still very poor condition that causes underdevelopment of technology and knowledge management Indonesian businessmen.
In this case, taking the initiative by the government in the economy looked very necessary to encourage a better business climate as well as the memeratakan unbalanced distribution of income for many years. It should be noted that during this time, the efficiency of government enterprises is still not terbenahi. The weak state apparatus causes of the problems of corruption, abuse of authority and the low economic efficiency