research demographics

Quantitative Demographics

Gender Distribution
MSMEs
Startup
Total Owners Interviewed:
300
Total Owners Interviewed:
24
Highest Education Attainment
MSMEs
Startup
Total Owners Interviewed:
297
Total Owners Interviewed:
24
Owner's Age
MSMEs
Startup
Total Owners Interviewed:
294
Total Owners Interviewed:
23
Marital status
MSMEs
Startup
Total Owners Interviewed:
299
Total Owners Interviewed:
23
Number of Dependent(s)
MSMEs
Startup
Total Owners Interviewed:
202
Total Owners Interviewed:
22

Qualitative Demographics

Education
Total Owners Interviewed:
12
Gender
Total Owners Interviewed:
12
SEC
Total Owners Interviewed:
12
Industry
Total Owners Interviewed:
12
Size
Total Owners Interviewed:
12
Age
Total Owners Interviewed:
12

Codesign Demographics

Name
No
organisation
position
category
Priority Area 1: How might we support MSMEs to develop strong and up-to-date market and industry knowledge?
1
Olansons Girsang
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Industry Development Division
Government Institution
2
Adhitya Pratama Yudhasaput
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Small and Medium Enterprise Infrastructure Division
Government Institution
3
Suhono Harso Supangkat
Think20 (T20)
Head of Small and Medium Enterprise Infrastructure Division
Think Tank
4
Sigit Purwanto
Institute for Innovation and Entrepreneurship Development (LPIK-ITB)
Head of Monitoring and Evaluation Division
Think Tank
5
Aufa Doarest
World Bank
Private Sector Specialist
International Organization
6
Timothy Astandu
Populix
CEO
Industry
7
Alam Medina
Governor’s Team for the Acceleration of Development (TGUPP)
Policy Analyst
Government Institution
8
Manael Sudarman
Jakarta Experience Board
Business Director
Government Institution
9
Zidny Ilman
Gojek
Public Policy & Government Relations Jr. Manager
Industry
Priority Area 2: How might we make digitally-empowered growth affordable for MSMEs?
10
Presthysa Nagitha Lestari
Gojek
Vice President, Public Policy and Government Relations
Industry
11
Tauhid Ahmad
INDEF
Executive Director
Think Tank
12
Puji
Bank DKI
SME Division
Financial Institution
13
Teddy Trilaksono
Universitas Prasetya Mulya
Faculty Member
Educational Institution
14
Frida Elizabeth
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Creative and Digital Industry Division
Government Institution
15
Emana Fasianti
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Creative and Digital Industry Division
Government Institution
Priority Area 3: How might we build the tech talent reservoir to meet the evolving industry demand?
16
Andy Sulasikin
Jakarta Smart City
Government Institution
17
Tendy Gunawan
International Labor Organization
National Program Officer
International Organization
18
Erika Dianasari Go
Alpha JWC
Partner
Financial Institution
19
William Hendradjaja
Skilvul / Impact Byte
Co-founder & Chief of Business
Educational Institution
20
Nursida Yaru
Tokopedia
Senior Public Policy and Government Relations Associate
Industry
Gender Distribution
Total Owners Interviewed:
20
Category Distribution
Total Owners Interviewed:
20
smartchange 2022
MSME ecosystem

Measure the effectiveness of MSME entrepreneurship development programs

Policies Involved

Renovation
Ministry of Cooperatives and MSMEs Regulation No. 24 of 2015 on the Norms, Standards, Procedures and Criteria of Entrepreneurship Incubator Development
Governor of DKI Jakarta Regulation No. 2 of 2020 on Integrated Entrepreneurship Development
Innovation
Ministry of Cooperatives and MSMEs Regulation on MSME Business Training

Challenge

There is no shortage of MSME development programs in Indonesia, especially in the capital city of Jakarta. These often take the form of business incubators, structured programs that provide early-stage enterprises with the support and services they need but find it difficult to access, such as networking opportunities and exposure to financing1. Other MSME development programs are business training run by corporations, financial institutions or the government, each set up with their own goals and objectives, while others offer resources and support exclusively for MSMEs in specific sectors. However, without diagnostic data on their effectiveness on supporting MSMEs, their impact risks being suboptimal.

Current Policy

There are several policies concerning MSME development programs given the myriad of programs that are currently available2. Before the issuance of the Government Regulation No. 7 of 2021 on the Ease, Protection and Empowerment of MSMEs (GR 7/2021), business incubators were regulated by the the Presidential Regulation No. 27 of 2013 on the Development of Entrepreneurship Incubator and its implementing regulation, the Ministry of Cooperatives and MSMEs Regulation No. 24 of 2015 on the Norms, Standards, Procedures and Criteria of Entrepreneurship Incubator Development. While the newly issued GR 7/2021 had introduced changes to the implementation of business incubators - such as the process of curating and ranking of incubators - not all of the changes pertaining to incubator development are included in the recently issued ministerial regulation3 4.

In the private sector, business training run by civil society organizations and large enterprises tend to be untracked and short-lived. They often do not use standardized curriculums and are often set up to meet the organizations’ own organizational goals. GR 7/2021 now mandates these organizations to inform and convey their plans, implementation, and outcomes to the Minister for Cooperatives and MSMEs5. Such a requirement is important because it can help the government to estimate each program’s impact on the growth and performance of MSMEs in a systematic way.

At the regional level, the Governor of DKI Jakarta Regulation No. 2 of 2020 on Integrated Entrepreneurship Development, which facilitates the flagship region-wide Jakpreneur program in DKI Jakarta, includes provisions on program monitoring and evaluation. Monitoring and evaluation are necessary to identify whether the program is successful in meeting their objectives, but at this time, there are little known indicators used to measure program success beyond the number of sign-ups.

Action

MSME development programs must set success metrics, not only to understand how well they are performing, but also to identify whether there are gaps between the program they are delivering and the needs of MSMEs. First, categorizing the variations in MSME development program designs can allow policymakers to design key performance indicators (KPIs) that account for their differences. Second, developing metrics and milestones to identify success beyond sign-up numbers for business incubators and Jakpreneur will improve the value that the programs bring to its participants. Lastly, to ensure that the success measurement data on these programs can be easily accessed by relevant stakeholders, a digital platform can be set up to allow data input, and a dedicated team assigned to process the data.

In addition to the revision of existing regulations, the Ministry of Cooperatives and MSMEs may consider creating a separate operational regulation to encourage the business world and civil society organizations across the country to measure the impact of the myriad of business training they are currently running for MSMEs across the country. Such regulation should understand the priorities of the stakeholders involved and avoid becoming a red tape that disincentivizes them from running the programs.

action points
parties involved
Categorize variations in MSME development program designs
Ministry of Cooperatives and MSMEs
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
MSME development programs
Develop metrics and milestones to measure program effectiveness
Ministry of Cooperatives and MSMEs
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
MSME development programs
MSMEs
Develop platform for mandatory data input amongst beneficiaries
Ministry of Cooperatives and MSMEs
Ministry of Communications and Informatics
Office of Communication, Informatics, and Statistics DKI Jakarta
Statistics Indonesia (BPS)
Assign dedicated team to process data
Ministry of Cooperatives and MSMEs
Provincial Government of DKI Jakarta
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
Statistics Indonesia (BPS)

Indicator of Success

Development of data collection board & platform
Development of program metrics and milestones
Data completeness
Data uptodate-ness
previous
Synchronize MSME classification
next
Improve MSMEs’ access to market and innovation data
  1. According to the Minister of Cooperatives and MSMEs Regulation No. 3 of 2021 as the Implementing Regulation of GR 7/2021, incubators can be run by national or regional governments, education institutions, formal or informal enterprises, and civil society.
  2. For ease of understanding, the term ‘MSME development programs’ encompass business incubators, business training by civil society organizations and large enterprises, and government-run programs, such as Jakpreneur.
  3. GR 7/2021, Article 134.
  4. Minister of Cooperatives and MSMEs Regulation No. 3 of 2021 as the Implementing Regulation of GR 7/2021 was issued to implement parts of GR 7/2021, such as Articles 9(3), 50(4), 92(3), 97(3) and 135(4).
  5. GR 7/2021, Article 97.

For many entrepreneurs, the decision to turn into innovations depends on the ease to adopt technology, trained workforces, and multiple sources of finance. Yet, navigating the complex regulation is a major challenge for most lay business people. To expedite the economic recovery post-pandemic recession, the stakeholders in the ecosystem are urged to formulate the right policy to simplify such challenges.

— Kariem El-Ali, Senior Policy Advisor
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