The Indonesian Government Has Realized That Entrepreneurial Activities Increase Economy Efficiency

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The Indonesian government has realized that entrepreneurial activities increase economy

efficiency. Small and medium enterprises (SME) play a dynamic role in Indonesian economy.
The number of Indonesian SMEs was 42.4 millions and they contribute to 56.7% of GDP,
account 19,4% of total export, and employ 79 millions of work force. There is a strong tradition
of women’s entrepreneurship in Indonesia, particularly in micro and small enterprises. In
Indonesia, women are less likely than men to be owners. Despite their small numbers, women
entrepreneurs in Indonesia have a good reputation.

There are many government efforts to introduce new technology for SMEs development.
However, secessionist movements and the low level of security in the provincial regions, as well
as relatively unstable political policies, form some of challenges for entrepreneurs. Additional
problems include the lack of reliable legal recourse in contract disputes, corruption,
weaknesses in the banking system. The confidence of investors remains low, and in order to
achieve future growth, internal reform will be essential to build up confidence of international
donors and investors.

 Indonesia's garment industry is dominated by entrepreneurs of Chinese descent and the Japer
industry by pribumi (Indonesian Malays); in rattan furniture, the two are reasonably equally
mixed. About 75 percent of the entrepreneurs in garments and rattan furniture have some
university education; less than half of those in the more traditional, skill based Jepara industry
do.

 WOMEN ENTREPRENEUR AND INDONESIAN-YOUNG-ENTREPRENEUR

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