In a bid to stimulate the emergence of new entrepreneurs in the country and increase the number of small- and medium- sized industrial firms outside the island of Java, the government promises to provide such firms with better access to financing.

Industry Minister M.S. Hidayat said on Tuesday in Jakarta that his ministry would cooperate with large-scale companies to help small- and medium- sized enterprises (SMEs) through a venture capital scheme.

“The venture capital scheme is very good and has been proven in developed countries to help generate small industrial firms. Venture capitalists can also benefit from this cooperation as they do it according to business norms,” he told reporters after the signing of a memorandum of understanding between the ministry and the Indonesian Indigenous Entrepreneurs’ Association (Hippi).

Hidayat said 10 large-scale entre...