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Jakarta Post

Indonesia enterprises growing by up to 6 million a decade

  • Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Thu, December 10, 2015   /  04:39 pm
Indonesia enterprises growing by up to 6 million a decade Economic sensus: The central statistic agency (BPS) is going to run the Economic Census 2016 from May 1 to 31 next year to record the exact amount of companies in Indonesia. (Illustration: antaranews.com)

Economic sensus: The central statistic agency (BPS) is going to run the Economic Census 2016 from May 1 to 31 next year to record the exact amount of companies in Indonesia. (Illustration: antaranews.com)

Indonesia potentially added an additional 4 to 6 million business enterprises over the last decade, from 2006 to 2016, bringing the total number of enterprises running in the country to between 26 and 29 million according to the Central Statistics Agency (BPS).

BPS deputy head for distribution and service statistics Sasmito Hadi Wibowo said the agency would run the Economic Census 2016 from May 1 to 31 next year to record the exact amount of companies running in Indonesia. The 2016 census will be the fourth one that the agency has run.

In the first census, in 1986, there were 9.3 million enterprises. In the 1996 census, that figure had risen to 16.4 million, and reached 22.7 million in 2006.

"We expect to record 26 to 29 million enterprises in the 2016 census, mostly from the trade and services sectors," Sasmito said on Thursday.

In the last census, trade and manufacturing companies dominated Indonesian businesses, accounting for 44 percent of the total. Consultancy companies followed accounting for 17 percent, then equipment companies, 10 percent, power utilities companies, 9 percent, and shipping companies accounting for 6 percent.

BPS head Suryamin explained the goal of the census was to collect and present a database of all economic activity in Indonesia, as the basis of policy formulation and future development planning.

"The census will map the strength of enterprises in all economic sectors except for the agriculture sector," he said.

A total of 17 sectors will be targeted in the 2016 census, including mining, manufacturing, supply, gas, electricity, water, waste-water management, recycling and construction.
 

Main obstacle


Indonesian Chamber of Commerce and Industry (Kadin) vice chairman Nita Yudi said Indonesia had a very few businesspeople due to its unsupportive policy environment and general climate for business, particularly in terms of access to financing.

She argued that the high interest incurred by working loans was a key obstacle for the expansion of the business workforce. The government's KUR (business loans) program, she said, with a 9 percent interest rate was still very high compared to other countries in the region.

"Thailand asks 2.2 percent interest for similar loans. How can we compete if the government is not pro-business enough?" she said.

She expects the results of the economic census to provide a comprehensive overview of the business sector and a basis for more pro-business measures.

"The economic census is expected to give us comprehensive picture of business sectors that the government can refer to in policymaking to support business in the future, and in turn increase the number of businesspeople as a driver of the growth," Nita said. (ags)

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