President Jokowi Supports HIPMI Goes to Campus

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 7 Maret 2018
Category: News
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President Jokowi attends the HIPMI National Executive Meeting in Tangerang, Banten, on Wednesday (7/3) (Photo by: Rahmat/Public Relations Division).

President Jokowi attends the HIPMI National Executive Meeting in Tangerang, Banten, on Wednesday (7/3) (Photo by: Rahmat/Public Relations Division).

President Joko “Jokowi” Widodo attended the National Executive Meeting (Rapimnas) of the Indonesian Young Entrepreneurs Association (HIPMI) in Tangerang, Banten, Wednesday (7/3). In his remarks, the President suggested how to raise a business from small- to medium-sized business, then from medium- to upper-sized business.

“I agree that we need new conglomerates in Indonesia who are from Small and Medium Enterprises (SMEs), particularly not only in Jakarta but more importantly from the regions, this is very important,” the President said while requesting the HIPMI members to formulate a law or regulation on Entrepreneurship.

On the occasion, the President also mentioned about HIPMI’s programs, such as ‘HIPMI goes to campus’ and ‘HIPMI goes to school’ that encourage both senior high/vocational schools and campus to not only concerned with politics but Indonesia’s economy as well.

“I am very supportive and in order to realize it, you can cooperate with the Ministry of Education and Culture and other related Ministries so that the move to further increase the number of entrepreneurs in our country can be materialized,” the President added.

When it comes to the Smallholder Business Credit (KUR), the President said that previously the credit interest rate was at 22 percent, but it has been lowered to 9 percent, and this year it has been targeted to reach 7 percent.

“Then not only the credit rate of only 7 percent but also we expect such figure can be utilized by entrepreneurs including what has been submitted earlier by the East Java General Chairman on boarding schools,” the President added.

Micro Endowments Banks and SMEs Taxes

Furthermore, the President said that now the Government has started to apply to build micro waqf (endowment) bank in some pesantren (Islamic boarding schools). He added that perhaps many who do not know that the administration fee for micro endowment bank is only 2 percent.

“The volume is not much yet, one micro waqf bank only has capital of approximately six to eight billion rupiahs. However, for a pesantren level that has a business community, I think it’s more than enough,” the President firmly said.

The President went on to explain that such bank will continue to be built in the pesantren so that the economy, as delivered by the East Java General Chairman, will grow further. “I think I will wait for inputs from HIPMI regarding the formulation of economic development in pesantren,” the President added.

Regarding the tax on SMEs amounted to one percent, the President said that this has been discussed three times, and Inshaa Allah by the end of this month, it will be reduced from one percent to 0.5 percent.

“I ask to be 0.25 percent, but the Minister of Finance insisted,” the President said while revealing the reason from the Minister of Finance that should the rate declines so far, it could affect the Government’s revenue.

Also attending the event were Speaker of the House of Representatives (DPR) Bambang Soesatyo, Speaker of the Regional Representatives Council (DPD) Oesman Sapta, Coordinating Minister for the Economy Darmin Nasution, Cabinet Secretary Pramono Anung, Minister of Trade Enggartiasto Lukita, Minister of Education Muhadjir Effendy, Governor of Banten Wahidin Halim, and HIPMI Chairman Bahlil Lahadilia. (DNS/RAH/EN) (MUR/MMB/YM/Naster).

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