The government has officially issued Presidential Regulation No. 38 of 2026 on National Entrepreneurship Development. This regulation serves as a common guideline for ministries/agencies, local governments, and all stakeholders in efforts to boost the national entrepreneurship rate, which has so far remained relatively low compared to neighboring countries.
Ambitious Goals Through 2045
This Presidential Regulation establishes the National Entrepreneurship Roadmap (PKN) as the blueprint for the development of entrepreneurship in Indonesia through 2045. Through this roadmap, the government aims to increase Indonesia’s entrepreneurship rate from 3.6 percent in 2029 to 8 percent in 2045 — in line with the targets of the 2025–2045 National Long-Term Development Plan (RPJPN).
Riza Damanik, Deputy for Entrepreneurship at the Ministry of Micro, Small, and Medium Enterprises, emphasized that the paradigm of entrepreneurship development is now shifting. Entrepreneurship development is no longer viewed solely as an effort to increase the number of entrepreneurs, but rather as a strategy to strengthen the foundation of the national economy through the emergence of resilient, innovative entrepreneurs who are capable of growing, advancing, and becoming part of the national industrial value chain.
Six Priority Groups of Entrepreneurs
To maximize the impact of the policy, Presidential Regulation No. 38 of 2026 focuses specifically on certain entrepreneurial groups deemed strategic for national development. These groups include:
Social entrepreneurs — businesspeople whose business models are focused on solving social and environmental problems.
Technology entrepreneurs — business owners whose ventures are based on digital innovation and technology.
Women Entrepreneurs — Promoting Women’s Participation and Economic Empowerment.
Youth Entrepreneurship — targeting the younger generation as the driving force behind the renewal of the business community.
Rural entrepreneurship—strengthening the economy based on rural potential and resources.
Creative economy-based entrepreneurship — promoting the creative industries sector as a driver of economic value-added.
Classification Based on the Stage of Business Maturity
In addition to prioritizing groups, Article 15 of this Presidential Regulation also classifies national entrepreneurship development programs in stages according to the level of maturity of business actors, namely prospective entrepreneurs, early-stage entrepreneurs, and established entrepreneurs. This categorization is intended to ensure that empowerment programs provided by the government and stakeholders are more targeted and no longer uniform across all stages of business development.
Coordination Mechanisms and Integrated Data
This Presidential Regulation also requires all ministries, agencies, and local governments to coordinate in submitting and updating entrepreneur profile data through the National Entrepreneurship Information System administered by the Minister of MSMEs. Pursuant to Articles 5 and 6, data updates are conducted twice a year—in July and December—in accordance with data standards and the principles of interoperability.
To ensure a coordinated implementation, this Presidential Regulation also mandates the establishment of a National Entrepreneurship Development Committee that will involve various stakeholders—ranging from the central and local governments, academia, the business sector, to community groups.
Implementing Regulations Are Still Needed
Although it provides a broad policy framework, Presidential Regulation No. 38 of 2026 does not yet specify in detail the procedures, operational mechanisms, or technical specifications for implementing the National Entrepreneurship Information System. This means that a number of implementing regulations are still needed to ensure that this policy can be effectively implemented on the ground.
With the issuance of this Presidential Regulation, the government hopes that the national entrepreneurial ecosystem can be developed in a more integrated and collaborative manner, so that entrepreneurs from various priority groups—particularly women, youth, and village-based entrepreneurs as well as those in the creative economy—will have a more focused path for growth toward the target of an 8 percent entrepreneurship rate by 2045.
