"We hope this collaboration would foster new entrepreneurs in small and medium industries from the lower classes of society, especially the beneficiaries of social assistance (programs)," Social Affairs Minister Agus Gumiwang Kartasasmita noted in Jakarta on Friday.
The collaboration was carried out through the signing of a memorandum of understanding between the industry and social affairs ministries concerning the growth of new entrepreneurs in small and medium industries for beneficiaries of Family Hope Program (PKH) and other beneficiaries in the field of social welfare.
The Ministry of Social Affairs has offered various programs in the field of social protection, especially for the poor and vulnerable, including the Family Hope Program (PKH) and Non-Cash/Literary Food Aid.
According to the Central Statistics Agency (BPS), both programs have had a significant impact on reducing poverty in Indonesia.
Kartasasmita noted that the Ministry of Social Affairs had integrated these social protection programs with social empowerment programs, such as the Joint Business Group (KUBE) program and Productive Economic Business (UEP).
"We also provide education, mentoring, and motivational encouragement among beneficiaries of assistance, especially PKH, through the Family Capability Improvement Program (P2K2) carried out by 39 thousand educated human resources throughout Indonesia," he revealed.
The positive outcomes of these efforts is apparent from the increase in the number of PKH beneficiaries, who have graduated independently. In 2017, the number of beneficiary families (KPM) reached 230,351, or 2.3 percent of the total KPM. In 2018, the number increased to 621,789 families, or 6.2 percent of the total KPM.
"In 2019, we are targeting as many as 800 thousand KPM independent graduations," the social affairs minister stated.
Minister of Industry Airlangga Hartarto believes the collaboration is strategic since one of the objectives of the Ministry of Industry was to create new entrepreneurs.
"There are groups of people, who are ready to graduate, and the Ministry of Industry offers a program to create new entrepreneurs, so there can be collaboration for this program," Airlangga added.
Reporting by Desi Purnamawati,Eliswan Azly
Editing by Suharto