Former Minister: Indonesia Needs 14% Entrepreneur Population to Become Developed Country

TEMPO.CO, Jakarta - Indonesia requires at least 13 to 14 percent of entrepreneurs to be elevated as a developed country, said former Minister of Manpower Abdul Latief.

"We currently have approximately 3 percent of entrepreneurs from the total population, and even then, roughly 65 percent of them are small-scale entrepreneurs," he said in a written statement on Tuesday, June 10, 2025.

According to the founder of the Indonesian Young Entrepreneurs Association (Hipmi), the quantity and quality of entrepreneurs in Indonesia are still limited, with middle-class society encompassing 17 percent of the population.

Indonesia, Abdul said, is in a seriously unbalanced structural position, as middle-class citizens should have reached 55 percent of the population. 

"The general public and business community are in a fragile structure and condition," he said.

Abdul also urged the government to evaluate the business development program, including micro, small, and medium enterprises (MSMEs).

"The MSMEs format is still far from successful," the former minister said, urging the government to review the MSMEs development.

He suggested that the development of medium and small entrepreneurs should be separated, as the current applicable format cannot enhance medium-scale businesses as they are degraded.

"The development of medium-scale entrepreneurs must have a specific format, commonly known as affirmative action/program," he said.

Abdul Latief also recommended that business development programs should focus only on the scale and type of business. Because small-scale businesses have broad coverage and consist of three common groups, namely small-scale industries; home industries; and cottage industries.

Previously, Deputy Minister of Manpower Immanuel Ebenezer Gerungan claimed that the government had been implementing concrete steps to address the high number of informal workers in the country.

"As of February 2025, more than 59 percent of Indonesian workers remain in the informal sector. This is not just a figure; it's a signal that we need real and systemic change," he said on June 5, as quoted from Antara.

Noel outlined three main strategies to accelerate the transition of informal sector workers to the formal sector. First, creating formal jobs based on green economy and industrial digitalization. Second, enhancing the skills of workers through vocational training and industrial apprenticeships.

The third and final strategy is to strengthen job placement services through the system digitalization of the SIAPKerja platform. "We are taking these steps to strengthen Indonesia's labor system to prepare it to face technological developments and changes in the future," said Ebenezer.

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