A new report provides recommendations to amplify the potential of youth entrepreneurship in Indonesia
June 23, 2022
Jakarta, June 23, 2022 – The youth in Indonesia, many of whom are unemployed due to the COVID-19 pandemic, are faced with inequality challenges to access technology and knowledge including financial literacy, according to a new report on entrepreneurship launched last February by UNDP, Citi Foundation, and the Islamic Development Bank (IsDB).
The report, which was commissioned through the Youth Co:Lab initiative co-led by UNDP and Citi Foundation, recommends tighter integration between stakeholders within the ecosystem, as well as encouraging investments in young people's financial literacy and the inclusion of formal entrepreneurship education, among other things.
Latest reports showed that young people have borne the brunt of the COVID-19 pandemic. According the 2021 National Labour Force Survey, 56.1 percent of young entrepreneurs who operate alone reported a decline in their earnings between February and August 2020. According to a UNDP poll conducted in 2020, 79 percent of young entrepreneurs in Indonesia reported that the pandemic had a negative impact on their firm.
Entitled “The State of the Ecosystem for Youth Entrepreneurship in Indonesia”, the report was launched at the closing of the Youth for SDGs Summit 2022, attended by more than 200 youth across Indonesia. The launch event also featured a presentation of the study’s findings from IsDB and research partners, the Local Enablers and the SMERU Research Institute.
“UNDP believes that the youths hold the key to our future recovery and growth, therefore we are committed to fostering young entrepreneurs, especially in Indonesia. The study that we are launching today confirmed a number of challenges facing our young entrepreneurs. But we must look at these hindrances as opportunities for progress.” said UNDP Indonesia Resident Representative, Norimasa Shimomura.
The report analyses the ecosystem at the national and regional levels, including case studies from Maluku, East Kalimantan, and West Sumatra provinces, and provides recommendations to strengthen the ecosystem.
Resident Representative of IsDB Group Regional Hub Indonesia, echoed the message as he said, “Entrepreneurship does not only help young people acquire economic independence but allows them to drive job generation and well-being among their peers and communities. As of 2020, roughly twenty percent of employed youth were entrepreneurs in Indonesia. Accordingly, to amplify the potential of youth entrepreneurship, it is crucial to understand the strengths and challenges youth-led businesses and aspiring entrepreneurs face. Additionally, the evidence generated through the report aims to help guide the mainstreaming of IsDB’s Youth Development Strategy through operations and projects at the country level and to identify entry points for strengthening the youth entrepreneurship ecosystem in Indonesia.”
Separately, Country Head of Corporate Affairs Citi Indonesia, Puni A. Anjungsari also expressed Citi Indonesia’s support and commitment to further develop youth entrepreneurship ecosystem in Indonesia. She stated, “This report showed us how youth entrepreneurship ecosystem development in Indonesia reflects the strength, creativity, and resilience of its youth, especially amidst the COVID-19 pandemic. However, it also showed where we can still create significant leaps of improvement on the ecosystem. In line with our global commitment in improving youth’s employability and economic opportunity through the Pathways to Progress initiative, we sincerely hope that this report can be a reference and insight to key development stakeholders and youth entrepreneurs across the country so that they can be more aware of the strengths and weaknesses of the entrepreneurship ecosystem in their region. Therefore, it can help to develop youths around them along the way.”
Findings of the report also confirm widely held views that entrepreneurship has the potential to cut youth unemployment while also promoting inclusive economic growth and long-term development.
“The State of the Ecosystem for Youth Entrepreneurship in Indonesia research report” is available via UNDP Indonesia’s website on this link.
***
UNDP The United Nations Development Program (UNDP) is the leading United Nations organization working to end the injustices of poverty, inequality, and climate change. Working with an extensive network of experts and partners in 170 countries, we help countries build integrated and sustainable solutions for people and the planet. Learn more at www.undp.org or follow us at @UNDPIndonesia.
IsDB The Islamic Development Bank is a multilateral development bank (MDB), working to improve the lives of those we serve by promoting social and economic development in 57 Member Countries and Communities Outreach in Non-Member Countries, delivering impact at scale. Learn more at isdb.org or follow @isdb_group.
Citi Foundation The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. The Citi Foundation invests in efforts that increase financial inclusion, catalyze job opportunities for youth and reimagine approaches to building economically vibrant communities. The Citi Foundation’s “More than Philanthropy” approach leverages the enormous expertise of Citi and its people to fulfil its mission and drive thought leadership and innovation. Learn more at citigroup.com/citi/foundation or follow @Citi.
***
MEDIA CONTACT
Tomi Soetjipto, UNDP Indonesia Communication Specialist, suryo.tomi@undp.org
Muhammad Didi Hardiana, Head of Innovative Financing Lab, muhammad.hardiana@undp.org
Audiva Navisha, Executive Assistant, IsDB Regional Hub Indonesia, aunavisha@isdb.org
Puni A. Anjungsari, Country Head of Corporate Affairs, Citi Indonesia, corporateaffairs.indonesia@citi.com