Indonesia’s Cooperatives and Small, Medium Enterprises Minister Teten Masduki informed that the ratio of entrepreneurs to the Indonesian population is currently at three percent. In a developed country, the percentage of entrepreneurs should at least be four percent. To achieve this end, the government has started to intensify support for new entrepreneurs that are emerging in various parts of the country. One of the efforts that the government has undertaken to provide support to MSMEs to maintain product quality, manage their business, and open new markets at the global level has been the incubation program. The incubation program is being realized through the formation of an ecosystem that encourages MSMEs to become more competitive through productive funding and assistance.
The Ministry of Cooperatives and SMEs, as the leading sector in incubator development, has issued Government Regulation No. 7 of 2021 on cooperatives and MSMEs’ convenience, protection, and empowerment. The regulation mandates regional governments at the level of provinces and districts or cities to immediately form incubator institutions. The ministry has demonstrated its commitment to forming incubator institutions through cooperation with 32 incubator institutions, divided into two activities. At least 10 incubator institutions have synergized to incubate 100 startups while 22 other incubators have synergized to develop their incubator institution. MSMEs that participate in the incubation program not only receive materials and assistance, but also several conveniences from the government. The ministry is supporting the incubation program, which has been in progress from 2020 until 2023.The incubation program has become a part of the ecosystem that supports the digital transformation of MSMEs in Indonesia to maximize national digital economy potential.
One of the institutions involved in the incubator program is Bank Syariah Indonesia (BSI), which, in January 2023, unveiled the 2023 BSI Entrepreneur Talent program.The program's winners get access to several facilities such as financing, market, and information. The 2023 BSI Entrepreneur Talent is aiming to involve 7,500 participants from more than 20 major cities in Indonesia.