HIPMI Pushes for UMKM Regulations in BUMN Projects

The Indonesian Young Entrepreneurs Association (Himpunan Pengusaha Muda Indonesia - “HIPMI”) has proposed that the government issue regulations on the transformation of State-Owned Enterprises (“BUMN”). The aim is to enable micro-, small-, and medium-scale enterprises (“UMKM”), particularly young entrepreneurs, to participate in strategic agendas.

“The government must issue regulations requiring the allocation of BUMN projects to UMKM, especially in strategic sectors such as energy and digital,” said Anthony Leong, Chairman of the HIPMI Central Executive Board (“BPP”) for BUMN Synergy and Regionally-Owned Enterprises (“BUMD”), to Hukumonline.

Another suggestion is to provide incentives for BUMN that seriously develop partnerships with young entrepreneurs. This could encourage BUMN to be more proactive in involving UMKM.

Anthony continued that both parties could collaborate through the BUMN-HIPMI Matching Fund initiative, a joint funding scheme to invest in technology-based startups managed by young entrepreneurs. “This could strengthen the entrepreneurial ecosystem,” he said.