State universities open doors to small enterprises

JAKARTA (JP): Indonesia's leading state universities have agreed to open their doors to small enterprises, offering a range of assistance from management training to consultation.

The new deal is yet another major breakthrough by Minister of Education and Culture Wardiman Djojonegoro in his campaign to promote the "link and match" concept between education and the working world.

Wardiman signed the agreement with Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya at his office yesterday.

The meeting was attended by the rectors of the universities enlisted, including the University of Indonesia (Jakarta), the Bogor Agriculture Institute, the University of North Sumatra (Medan) and the Gadjah Mada University (Yogyakarta).

Under the scheme, the universities will attempt to fulfill the various needs of small-scale entrepreneurs. This includes providing guidance, advice, education and training in a number of sectors, as well as provision of advice on management and business consulting.

In a speech at the signing ceremony, Subiakto said the program is expected to bolster the government's drive to create more competitive medium-scale enterprises nationwide.

Need

Indonesia is expected to need more medium-sized businesses in the coming years because that type of enterprise can generate a greater number of employment opportunities and support the export drive.

There are currently 32 million business classified as small- scale enterprises and only 31,000 medium-scale enterprises.

Subiakto said he hoped the universities would not simply conduct research for the small-scale enterprises, but would also advise and counsel them so that they can expand their operations and grow into medium-scale firms. "What we want is real help, not just something abstract."

Wardiman said the program also is expected to bring the universities closer to meeting the needs of society. "This is a chance to apply the link and match concept."

Under the program, the government will be issuing vouchers to small-scale enterprises, entitling them to assistance from designated universities.

Subiakto explained that his office will finance the project with funds taken from its annual project budget.

He refused to divulge the amount earmarked for the project by his office.

He said that certain criteria need to be imposed on the kind of enterprises qualified to join the program. Among the specifications will be the value added amount they generate, the number of jobs they provide and their business potential, including in exports. (yns)