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Most Indonesian businesses have no dedicated building
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A worker sorts shoes produced by a home industry in Ciomas of Bogor regency, West Java, on June 12. The Central Statistics Agency (BPS) says 70 percent of Indonesia's businesses operate without a special building. (Antara/Yulius Satria Wijaya)
T
he Central Statistics Agency (BPS) has urged the government to improve the productivity and competitiveness of domestic businesses, 70 percent of which have no dedicated buildings for their activities.
BPS head Suryamin said on Friday that only 7.8 million of the 26.7 million businesses registered in the 2016 economic census had special buildings for their operations. Many of the remaining 18.9 million businesses are run out of residential properties or on the streets.
"The challenge Indonesia is facing is quite large in the era of open competition, since more than 70 percent of businesses do not occupy a building specifically for their business activities. Productivity and business competitiveness need to be improved," Suryamin said.
Suryamin did not elaborate on how having a dedicated building could increase a business’s productivity and competitiveness.
According to BPS’s latest economic census, Indonesia has 26.7 million business entities, excluding agriculture, as of 2016, a 17.6 percent increase over the 22.7 million business units counted in 2006.
"There was an increase of four million businesses in the past 10 years," Suryamin said.
Java still dominates the business sector with 16.2 million entities, but the eastern regions of Maluku and Papua recorded the fastest growth in business registration over the past decade and are home to 500,000 entities today.
