09/03/2025
NATHAN INDONESIA FOUNDATION: BUILDING A THRIVING ENTREPRENEURIAL ECOSYSTEM IN DEVELOPING REGIONS
Indonesia faces a significant challenge with youth unemployment, ranking among the highest in the region (World Bank, 2020). Data from the 2019 National Labor Force Survey (Sakernas) indicates that young people constitute a third of the nation’s unemployed population. Furthermore, they are often associated with precarious jobs, low wages, minimal experience, and unfavorable working conditions. Experts predict that youth unemployment will rise faster than that of adults due to higher rates of job losses in younger demographics.
With Indonesia set to experience a demographic dividend in the next 5–10 years, the nation has a critical opportunity to strengthen its economy. Fostering youth entrepreneurship is one promising approach to reducing unemployment while laying the foundation for long-term economic resilience.
Interest in entrepreneurship among Indonesian youth is high (U-Report Indonesia, 2019). However, many obstacles hinder their participation in the entrepreneurial ecosystem. According to Bappenas (2020), young people struggle with limited entrepreneurial skills, education, experience, financial resources, networks, and family support. Additionally, they face challenges such as insufficient business incubators, limited access to growth opportunities, and inadequate policy support at various government levels (UNDP, 2020). Regional disparities further exacerbate the issue—many provinces outside Java report youth entrepreneurship rates of less than 1%, potentially slowing economic development in these areas.
The global and national commitment to youth empowerment through employment and decent work is reflected in initiatives aligned with the Sustainable Development Goals (SDGs). Programs like the Youth Entrepreneurship Initiative aim to drive long-term progress. UNDP Indonesia and Citi Foundation have introduced a framework to assess the youth entrepreneurship ecosystem based on five pillars: Talent, Culture, Capital, Density, and Regulation. However, the framework has been developed by inadequately represented the participation of youth from Indonesia’s eastern and western provinces, like the West Nusa Tenggara Province.
In response, Nathan Indonesia Foundation is spearheading an initiative to foster an inclusive youth entrepreneurship ecosystem, beginning in West Nusa Tenggara. Nathan Indonesia Foundation, partnering with Hamzanwadi University and HIPMI, is launching a youth-led program in West Nusa Tenggara. The first cohort of 30 students will receive training, networking, and access to capital, fostering entrepreneurship to drive economic growth, job creation, and poverty reduction in developing regions.