VZCZCXRO6644
OO RUEHJS
DE RUEHJA #0045 0131042
ZNR UUUUU ZZH
O 131042Z JAN 10
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4273
INFO RUEHJS/AMCONSUL SURABAYA PRIORITY 2614
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS JAKARTA 000045 
 
SIPDIS 
 
DEPT FOR EAP/MTS, EEB/CBA 
DEPT FOR S/P GBEHRMAN 
DEPT FOR S/SRMC PANDITH 
DEPT PASS TO USTR KELHERS; BWEISEL 
 
E.O. 12958: N/A 
TAGS: ECON EAID PGOV SOCI ID
SUBJECT: ENTREPRENEURSHIP KEY TO TACKLING UNEMPLOYMENT IN 
INDONESIA 
 
¶1. (U) SUMMARY:  Indonesian Minister for Cooperatives and 
Small and Medium Enterprises Syarifuddin Hasan welcomed 
President Obama,s upcoming Global Entrepreneurship Summit 
and the opportunity to increase cooperation with the U.S. to 
expand entrepreneurship in Indonesia.  Hasan advised that he 
is focused on creating jobs by encouraging entrepreneurship 
and expanding access to microfinance.  Hasan said he hopes to 
facilitate over USD 10 billion in microfinance loans over the 
next five years and his ministry is working to simplify small 
loan applications and lower microfinance interest rates.  END 
SUMMARY 
 
¶2.  (U) In a meeting on January 12, Ambassador Hume shared 
with Minister Hasan information about the upcoming Global 
Entrepreneurship Summit and the planned visit to Indonesia of 
U.S. NGO Endeavor, which works to develop a culture of 
entrepreneurship.  He explained how both are opportunities to 
expand our partnership.  Hasan said he welcomed cooperation 
with the U.S. to spur entrepreneurship and to expand access 
to credit.  He expressed interest in Indonesia hosting a 
possible follow-up event to President Obama,s Global 
Entrepreneurship Summit.  He flagged building entrepreneurial 
capacity as a development priority for Indonesia and said he 
looked forward to expanding cooperation with the U.S. to 
achieve this goal. 
 
¶3. (U) Minister Hasan expressed his concern about the lack of 
jobs available to recent college graduates in Indonesia.  In 
Jakarta alone, there are over 73,000 jobless among recent 
graduates. The ministry is focusing its efforts on providing 
technical and financial assistance to 1,500 recent graduates 
in Jakarta, Bali, Central Java, Jambi, and North Sumatra to 
start small businesses.  The ministry will provide additional 
support to successful small enterprises after a review period. 
 
¶4. (U) Minister Hasan described his ministry,s efforts to 
improve access to microfinance loans.  Ministry programs are 
helping to provide loans up to USD 500 at an interest rate of 
14 percent.  The ministry plans to deliver approximately USD 
2 billion annually in microfinance loans over the next five 
years.  Additionally, loan application constraints including 
collateral and credit history checks will be lifted for these 
loans for the next five years.  The ministry,s goal over the 
next five years is to reduce the unemployment rate to 5 
percent (from the current rate of just under 8 percent and 
the poverty rate to 8 or 9 percent (from the current rate of 
just over 14 percent). 
HUME