“Overcoming Business License Issues for Indonesian Entrepreneurs: Insights from Gita Wirjawan”

Jakarta –

Per capita income in Indonesia has considerable potential to increase, one of which is through entrepreneurship. However, this will be difficult to achieve if the business license is difficult to issue.

Entrepreneur Gita Wirjawan explained several things that hindered the issuance of business licenses. First, the bureaucratic factor. Second, the money supply factor.

“There is a lot of money circulating around the world. If I count the money circulating in the United States, Europe, Canada, Mexico, New Zealand, Japan, South Korea, it is approximately US$ 100 trillion. As an illustration, this is 100 times Indonesia’s income,” he said at The Founders Fest event at The Kasablanka, South Jakarta, Saturday (6/5/2023).

The former Minister of Trade also compared the business licenses issued by China and Indonesia. In China, business permits are issued 9-10 per 1,000 people, while in Indonesia only 0.3 per 1,000 people. According to him, this is hampering the growth of per capita income in Indonesia.

To get around this, he advises entrepreneurs to get funding from abroad. To get it, entrepreneurs can borrow from abroad and bring in foreign investors.

“But now is not a wise time to borrow given the fact that interest rates have been raised. In the United States in 11 months the interest rate has increased by 2,000%. 11 months ago, the interest rate was 0.25%, now it is 5%, the increase is 4 .75%,” he said.

This, he continued, caused the economic system of the United States and developed countries in Europe to experience an extraordinary shock. Coupled with the bankruptcy of Silicon Valley Bank (SVB) to First Republic Bank, venture capitalists are very careful about providing capital for business ventures.

However, he believes that in the future there will be many business sectors in Indonesia that can develop. Some of the ones that are growing rapidly are the marketplace, the financial services sector, and the aviation or aviation sector.

“Undoubtedly in the future, similar things will be adopted, felt, embraced by other sectors, including agriculture, animal husbandry, property, health, education, energy and others,” he concluded.

(fdl/fdl)