Indonesian government through its Ministry of Cooperations and SME recently announced that they’re soon to launch a regulation on entrepreneurship and technology incubator development for SMEs (yes, that includes tech startups). This regulation has been processed for quite some time in conjunction with ASIAN Economic Society program effective in 2015.
As quoted from Kontan, ministry’s representative I Wayan Dipta claims that the regulation will be publicly launched this March, “we’re still waiting the green light from president”, Dipta added. Wayan Dipta also stated that this regulation is crucial in order to legitimise all entities involved in business and technology incubators for Indonesian SMEs, he added “currently we don’t have anything to further regulate this practice”.
The government sees entrepreneurship and technology incubators as mediators who provides business mentorship, access to technology, access to market, as well as capital funding. This regulation is needed in order for the government to oversee and protect local SMEs in preparation for the ASIAN free market.
Aside from incubators owned by private companies, since 2010 the government also partners with four universities to establish entrepreneurship incubator program for its students. Bandung Institute of Technology for manufacturing, Bogor Institute of Agriculture for agroindustry, Brawijaya University for agro-business and Surabaya Institute of Technology for creative technology.
Indonesian Chamber of Commerce through its representative Budyarto Linggowiyono stated that such regulation is crucial as a framework for entrepreneurship and technology incubators. “These incubators must be constrained with targets and benchmarks”, Linggowiyono added. Linggowiyono also expresses his concerns for Indonesia’s lack of export-value technology products.
