JAKARTA: Indonesian young entrepreneurs see that the biggest challenge in developing middle class businesses is less supportive policy, hampering them in getting bank's loan.
Indonesian Association of Young Entrepreneurs (Hipmi) views that middle class businesses have not get access to easy financing because their assets are considered small for collaterals, said Chairperson Erwin Aksa.
What Indonesian businesses need now is the role of economic catalysts in regional areas. So far, the government has been acting as the catalyst but private investors are also required in developing regional areas.
“There should be assurance from the catalyst, so the banks in no doubt will give loans,” said Erwin in his visit to daily Bisnis Indonesia’s office today.
The catalyst, he added, is the one that can give certainty on sustainable business, which is expected not to stop abruptly.
Hipmi will conduct a national meeting next week and Erwin’s 3-year tenure will end as the meeting appoints new leader. (t04/ags)