GLOBAL ENTREPRENEURSHIP MONITOR

[GEM] - INDONESIA
The Global Entrepreneurship Monitor, GEM, is the largest international research initiative
that analyzes the propensity of the adult population of a country to participate in
entrepreneurial activities and the conditions that enhance these entrepreneurship initiatives.
Indonesia joined GEM in 2013 to build research capacity on entrepreneurship in order to
provide policymakers with a stronger empirical foundation on which to build and monitor
entrepreneurship and job creation .
Adult Population Survey 2013

GEM research activities explore

entrepreneurship profile and the social,
cultural and political context of
entrepreneurial activities. The
entrepreneurship profile looks at the
attitudes, activity and aspirations of adult
population from Adult Population Survey
(4,500 sampe size of Indonesian adults
who are 18-64 years old). The social,
cultural and political context of
entrepreneurial activities especially
innovation and entrepreneurship
framework are explored through National
Expert Surveys from 36 experts in 9
aspects of entrepreneurship framework.

Perceived Opportunities (%)

46.68

Perceived Capabilities (%)

62.01

Fear of Failure (%)

41.28

Entrepreneurship as a Good Career Choice (%)

70.83

Nascent Entrepreneurship Rate (%)

5.7

Owner-Managers in New Businesses Rate (%)

13.23

Owner-Managers in Established Businesses (%)

21.2

- Male Established Business (%)

21.64

- Female Established Business (%)

20.75

Total Early-stage Entrepreneurial Activity Rate (%)

25.52

- Necessity-Driven TEA Rate (%)

6.49

- Improvement-Driven Rate (%)

43.68

Entrepreneurial Activity Rate (%)

45.32

Indonesia has a high entrepreneurial activity rate (45.32%) and most of Indonesian adults perceive entrepreneurship is a good career choice (70.83%). Almost half of Indonesian adults think they have opportunities to
start business in the next 6 months (46.68%) and they perceive that they have capabilities to start up a business (62%). However, most of the businesses are micro or small-scale business with the average number of
employees of 1.91.
The involvement of Total Early-Stage Entrepreneurship
Male
Age
bracket

Female

Freq

Percentage

Freq

Percentage

18-24

72

12,6%

61

11,4%

25-34

185

32,3%

185

34,6%

35-44

170

29,7%

178

33,3%

45-54

102

17,8%

73

13,7%

55-64

44

7,7%

37

6,9%

Total

573

100,0%

534

100,0%

40,0%
35,0%
30,0%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
18-24

25-34
35-44
45-54
Male (%)
Female (%)

55-64

GLOBAL ENTREPRENEURSHIP MONITOR

[GEM] - INDONESIA
1

National Expert Survey 2013

9
1 Finance
2a Nat. Policy General Policy

2b Nat. Policy Regulation

3 Government Programs
4a Education Prim. & Second.

7b

4
3,5
3
2,5
2
1,5
1
0,5
0

2a

2b

4b Education Post-School
5 R&D Transfer
6 Commercial Infrastructure

7a

4a

7a Internal Market Dynamics

7b Internal Market Openness
8 Physical Infrastructure
9 Cultural and Social Norms

4b
5
Indonesia

Asia

From the Innovation and Entrepreneurship Framework (surveyed through GEM National Expert
Survey) and compared to the average Asian countries, Indonesia shows similar performances in
nine pillars of Innovation and Entrepreneurship framework. Also, the Indonesian post-school education and the openness of internal market pillars have been assessed better compared to the average Asian performance. Nevertheless, government regulation and R&D transfer in Indonesia are
considered to be lower than the average Asian.

INDONESIA - General Characteristics

Indonesia GEM Team:

Centre of Excellence for SME Development
Institute for Research & Community Service
Parahyangan Catholic University [UNPAR]
Jl. Ciumbuleuit 94 Bandung 40141
INDONESIA

Contact person: Catharina Badra Nawangpalupi, PhD.

Phone: +62 22 203 2700
Fax: +62 22 203 1110 / 203 2700
E-mail: katrin@unpar.ac.id

Population (x 1000)

238518.8 (in 2010)

Area (x 1000 km2)

1811570

Density (person/km2)

131.664 (in 2010)

GDP per Capita (PPP)

5,100 USD

Global Happiness Index

5.348 (76/156)

Human Development Index

0.629 (121/187)

Global Competitiveness Index

4.53 (38/148)

Global Innovation Index

31.95 (85/142)

Ease of Doing Business Index

120/189

Classification phase of Economic

Efficiency-Driven
Economies