REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Young Entrepreneurs Association (HIPMI) has called on the central and regional governments to provide its members with the best business facilities, according to a HIPMI executive.

"About 57 million small businesses (UKM) in the country are run by young entrepreneurs. With such a large number, we estimate that they contribute some Rp570 trillion to the country's economy," Hardini Puspasari, the head of HIPMI's Autonomy Board for business, investment and small business enterprises affairs, stated here on Wednesday.

Puspasari noted that the Rp570 trillion estimated contribution by the UKM exceeded the investment target of Rp519.5 trillion set by the Capital Investment Coordinating Board (BKPM). She affirmed that the estimated figure of Rp570 trillion was obtained by calculating the minimal working capital owned by each of the young entrepreneurs, or about Rp10 million each.

"It has a significant impact on the circulation of money and investment," noted Puspasari.

Moreover, she affirmed that the micro, small, and medium enterprises (UMKM) are the backbone of the national and regional (ASEAN) economies. The UMKM sector is able to provide jobs to 97.2 percent of the country's total workforce.

Therefore, HIPMI has urged the central government to provide special incentives to the young Indonesian entrepreneurs who are keen to expand their businesses. The incentives should be provided for businesses across several categories.

She explained that the categories could include entrepreneurs who expanded their businesses and absorbed several workers in their surroundings, and businesspersons who developed a type of business that increased the added value of the domestic products.

Those companies not only sell raw materials but also process them into semi-finished goods or finished products.

"The incentives could be in the form of income tax and value-added tax exemption for a certain period of time or in the form of financing support for new young entrepreneurs who are investing in their businesses," she stated.

She cited as an example the guidance offered to young businessmen in preparing their tax reports, so that their investments could be realized comprehensively.

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