Boediono prods banks to lend more to young businessmen

Indonesian Vice President Boediono said entrepreneurs have a crucial role in development.

Boediono said Indonesia said banks should tap the business potential of young entrepreneus.

“Banks should go upstream,” he pointed out.

Boediono said Indonesian lenders should not only lend to well-designed business plans from big corporations but should also look at raw projects envisioned by Indonesia’s youth.

The issue was important since entrepreneurs had a strategic role in providing employment and propelling the country’s economic growth.

Boediono also said it was imperative for university rectors and school principals to construct curricula that nurture entrepreneurship. He also promised an environment in the state bureaucracy more conducive to the prosperity of future entrepreneurs.

“I will improve the infrastructure, provide incentives and ease the issue of business permits for new entrepreneurs who are just starting out.”

Indonesia has a dearth of entrepreneurs. According to the World Bank’s 2008 entrepreneurship survey, entrepreneurs in Indonesia only account for 1.6% of its total population, a dismal figure compared to Malaysia’s 4% or Singapore’s 7.2%.