Coordinating Minister for Human Development of the Republic of Indonesia, Dr. Abdul Muhaimin Iskandar, stated that the government is currently facing the persistent challenge of high poverty rates.
In response, the government is seeking innovative approaches to significantly reduce the number of people living in poverty.
Minister Iskandar reported that 24.06 million people in Indonesia, or 8.57% of the population, live in poverty.
Meanwhile, 3.17 million people, or 1.13%, are considered to be living in extreme poverty.
He added that the unemployment rate stands at 7.28 million people, or 4.76% of the national workforce.
“There are more than 7 million unemployed,” said Minister Iskandar during a seminar titled Strategies for Empowering MSMEs through Inclusive Investment, organized by the Student Representative Council of the UGM Faculty of Economics and Business (FEB UGM) on Thursday (May 8) at the UGM Innovation and Creativity Hub (GIK UGM).
He explained that the government is exploring new ways of working and developing new strategies, patterns, and adaptations to address the nation’s complex social and economic issues.
“We need new creative approaches that can function in this era of technological advancement and artificial intelligence,” he said.
In his presentation, Minister Iskandar elaborated on the community empowerment model, which has traditionally been carried out by non-governmental organizations (NGOs), the government, and the private sector, an approach he believes can be synchronized.
While the government’s previous efforts largely focused on providing social assistance, the current strategy seeks greater engagement through empowerment initiatives in collaboration with various stakeholders.
“A successful government can collaborate with many parties. A successful society builds its economic ecosystem,” the UGM graduate added.
Addressing the students, Minister Iskandar encouraged them to contribute innovative ideas for economic empowerment.
He also invited continued collaboration to explore new methods of empowering communities by addressing pressing social challenges.
“I hope UGM continues to generate constructive ideas and models of development,” he concluded.
Sabiq Muhammad Ghazi, Chair of the Student Representative Council (BPM) FEB UGM, presented a Student Aspiration document to Minister Iskandar.
The document outlines student-generated proposals to improve efficiency, business incubation, risk management, and the digital transformation of MSMEs, grounded in Pancasila-based economic principles.
Author: Leony
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photographer: Donnie