Recently President Joko Widodo launched an industry roadmap called “Making Indonesia 4.0” that focus to create a high-tech startup and take advantage of automation for manufacturing industry, but Indonesia should not forget the fact that Indonesian economy rely mainly on a myriad of micro-entrepreneurship and small businesses. Micro-entrepreneurship have a big impact to Indonesian economy especially for welfare and labor stage because there are a lot of Micro-entrepreneurship in Indonesia. There are still many people think that Micro-entrepreneurship does not appear as lucrative when compared to households that rely only on salaried employment. But in reality Micro-entrepreneurship is very helpful for the livelihood and welfare for the family especially for the poor one.
There are still many barrier for running this micro-entrepreneurship such as business permit that difficult to get and costly process. I agree that Indonesia should make more aggressive step and strategy to support micro-entrepreneurship for the future. Micro-entrepreneurship have a strategic role in overcoming the problems of poverty and unemployment, because Micro-entrepreneurship can create employment opportunities that are large enough to greatly help efforts to increase income and reduce unemployment. Micro-entrepreneurship and small businesses employed about half of Indonesia workforce. Micro-entrepreneurship were employing 105 million and small businesses were employing 5.6 million. Based on chamber of commerce Indonesia’s (KADIN) records, the contribution of the Micro-entrepreneurship sector to gross domestic product (GDP) increased from 57.
84 percent to 60.34 percent in the last five years. Uptake of labor in this sector also increased from 96.99 percent to 97.22 percent in the same period. So, Micro-entrepreneurship and small businesses have a big contribution to Indonesian economy, that’s why Indonesia should be more concern to expand Micro-entrepreneurship.It cannot be denied that Indonesia has many Micro-entrepreneurship spread throughout Indonesia.
In 2013, The number of micro-enterprises – companies in Indonesia were 57.2 million and for small businesses there were 654.000, this number show that Indonesia in general exhibit strong entrepreneurial intentions, but numerous hold them back. For example in 2016, 7 head of cooperation from South and West Sulawesi were arrested because they corrupt the donation that should be given for Micro-entrepreneurship in that area. Chief of Kasi Penkum, Salahuddin said “Total state losses for this case reached Rp300 billion”. Not only the corruption, Micro-entrepreneurship have another barrier such as administrative service that difficult to get, long and costly process. So micro-entrepreneurship who are mostly poor and have low education levels can’t afford the cost Micro-entrepreneurship end up not registering the businesses or run them without permits. Industry roadmap called “Making Indonesia 4.
0″ aims to create 1,000 high-tech startup that will become medium and large firm. But Micro-entrepreneurship need to branch out too and utilize the technology. President Joko Widodo (Jokowi) advised Micro-entrepreneurs to adapt to the industrial revolution 4.0. Jokowi said that entrepreneurs must immediately adjust and do not depend on selling directly, but there are also online or online selling systems that can also be used.
Jokowi said “Selling online can be via Facebook, Instagram, and many more, please use social media, do the promotion and items can be promoted from Youtube,” micro entrepreneurship must be able to adjust them self to the current development especially development of technology so micro entrepreneurship can compete in the market with medium or large firm too.
