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Cablegate: Entrepreneurship Key to Tackling Unemployment In

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

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