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Growth in number of businesses slowing down in last decade
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A worker moves a gas pipe at the Karangawen project in Demak, Central Java, on March 23. (ANTARA FOTO/Yusuf Nugroho)
I
ndonesia today has 26.7 million registered businesses across all sectors excluding agriculture, a 17.6 percent increase from 22.7 million entities in 2006, a preliminary report of the 2016 economic census shows.
However, growth in the number of registered business entities has slowed down considerably over the past decades.
According to data from past economic censuses, there were 9.3 million businesses entities in 1986, which then climbed by 7.1 million to 16.4 million in 1996. The number grew by 6.3 million to 22.7 million units in 2006. Growth of four million over the last decade is 59.7 percent lower than the average growth.
"There were an additional four million business entities in the past ten years […] The closer one gets to eastern Indonesia, the higher the business unit growth," Central Statistics Agency (BPS) head Suryamin said in Jakarta on Friday.
He explained that Maluku and Papua recorded the highest growth rate at 51.7 percent in the last ten years, to half a million business units. However Java still dominated, with 16.2 million business units, an 11.9 percent increase from 14.5 million units counted in 2006.
BPS has produced economic census reports since 1986 to gain a better understanding of the country's economic landscape. The reports provide people with data on the number of business units as well as their types, productivity, manpower, revenue and costs. (ags)
