Youth Entrepreneurship in Yogyakarta: Landscape, opportunity, and role of authority after COVID-19

On Sunday, 5th July 2020, we held our second Hebe Talks with Raudi Akmal (Wakil Ketua Komisi D DPRD Kabupaten Sleman Daerah Istimewa Yogyakarta) as our guest speaker.

In coherence with the previous Hebe Talks, the second Hebe Talks brought the topic about the opportunities that Yogyakarta region has to offer during and after the pandemic. Moreover, we also discussed the role of the authority who contributes to the development of economics condition.

Economics Condition in Yogyakarta

“More than 90% of UMKMs experience decrease in revenue during COVID-19 pandemic"

The context setting of the discussion is narrowed to the Indonesian region, particularly in Sleman. In Indonesia, 60% of its economy is contributed by UMKMs, while in Sleman, the majority (>50%) of UMKMs have revenue varying around 5 to 25 IDR Million per month before COVID-19. Overall, as the title says, even though most UMKMs' revenues diminish, there are still other sectors that have positive revenue growth. In fact, convection business is opening new job fields by means of shifting the production to mask and herbal products.

COVID-19 Impacts to Sleman Region

Almost all business sectors in Sleman, especially tourism, have to close because of COVID-19 impacts; 330+ hotels, 53+ tourism villages, 268+ traders, 1200+ tourism jeeps, and total closure of tourism destinations. Nonetheless, even if some sectors are impacted, there are others which become new windows of opportunity. For instance, outdoor and indoor hobbies-related business opportunity increases by 60%, health products by 90%, herbal food products by 200%, raw material by 300%, and frozen food by 500%.

What are the business opportunities in Yogyakarta?

“What sectors bring the biggest potential in Yogyakarta?”

In Sleman within Yogyakarta region, the potential is backed up by the number of tourists and students. More importantly, there are new professions that emerge because of the new business model such as digitalization and the existence of health products for example. The main priority for business to survive becomes stronger than the crisis itself as evidenced by the following five strategies that exist; workforce protection, customer engagement, operations shifting, supply chain stabilization, and financial stress testing. To support such strategies, 5 fundamental entrepreneurial characteristics are needed; functional humility, suspicious of predictors, openness to experimentation, comfort of uncertainty, and creativity.

What are Raudi Akmal's perceptions?

To succeed, young entrepreneurs in Yogyakarta need to consider investment, product innovation by virtue of research and development, digital marketing, and patience to grow the business. Collaboration between public sector and private sector is needed to help young entrepreneurs to be successful in the light of new economy. As such, Sleman Government has imposed the rules to help the development of business by young entrepreneurs that cover the following areas; digital marketing, online workshop, virtual promotion, partnership with academics, assistance for digital marketing, regular program by Disperindag (Department of Industry and Commerce), capital support, socialization and SOP implementation in accordance with new normal.