Indonesia needs entrepreneurs by design, not by accident, said Minister of Cooperatives and SMEs Teten Masduki.
According to him, the Ministry of Cooperatives has decided that it is important to nurture new entrepreneurs from universities who are always ready to compete in the domestic and global markets.
University-based entrepreneurship requires students to be innovative and creative.
“We no longer want to produce the same kind of entrepreneurs like those selling meatballs, chips, or handicrafts. Reproducing the same types won’t grow the economy; it will only add competitors. Let’s not kill off established investors by adding new ones from the educated class,” he said during Entrepreneur Hub Goes to Campus at Universitas Gadjah Mada (UGM) on Tuesday (Sep. 10).
Minister Masduki explained that the ministry has studied several successful cooperative and SME models from South Korea, Japan, Australia, and the Netherlands.
He emphasized that in today’s era of global competition, new entrepreneurs must be developed by design.
Minister Masduki noted that of the 64.2 million MSMEs in Indonesia, most are entrepreneurs by accident rather than design. They often operate without conducting market or potential research.
“Many open businesses simply because they are not absorbed into formal employment,” he added.
As a result, these MSME entrepreneurs tend to be unproductive, lack access to technology, and face difficulties obtaining financing. The ministry hopes to produce trained and educated entrepreneurs, mainly from university graduates.
“University graduates are more adaptable. Especially when, in the future, some countries develop their new entrepreneurs through university-based research, incubated by campus incubators, and connected to financial resources. Research-based entrepreneurs will give rise to a new economy and be highly competitive,” he said.
Minister Masduki is confident that by fostering entrepreneurship among educated individuals, Indonesia will produce more innovative and resilient entrepreneurs ready to compete in the global market.
“We need entrepreneurs full of innovation and creativity,” he stressed.
However, the minister admitted that not all universities have curricula that support young people in becoming entrepreneurs. A survey even showed that 72% of young people aspire to be entrepreneurs rather than employees.
“Some universities have already shifted their mindset. They no longer require a thesis but instead, ask for a business plan from the start of their studies. Upon graduating, these students become businesspeople,” Minister Masduki said to an audience of 600 students.
UGM Vice-Rector for Student Affairs, Community Service, and Alumni Dr. Arie Sujito mentioned that the collaboration between UGM and the Ministry of Cooperatives aims to shape empowered entrepreneurs and create an inclusive ecosystem.
“This cannot be steered by the ministry alone; we need collaboration,” Dr. Sujito emphasized.
According to the vice-rector, Indonesia must prepare to welcome its demographic bonus, with students expected to be the driving force of entrepreneurship.
“Entrepreneurship is not just a career path but an opportunity for empowerment. It should also be an arena for character building, empowerment, and expressing creativity and innovation. Sustainability is crucial,” Dr. Sujito concluded.
Author: Agung Nugroho
Photographer: Firsto
Post-editor: Afif