Thu, 10-17-2013 08:27 WIB
Government Creates the Agency of Youth Entrepreneurship Capital
By : the Information Desk
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Following up the mandate of Law Number 40 of 2009 (Undang-Undang Nomor 40 Tahun 2009) for the Youth, and also to encourage young generation to be reliable entrepreneur and to be the generation who creates job, government designed a financing system for Beginning Young Entrepreneur through the creation of Youth Entrepreneurship Capital Agency or LPKP.

The creation of LPKP was written in Government Regulations Number 60 of 2013 signed by President Susilo Bambang Yudhoyono (SBY) in September 12, 2013, and regulated on the same day by Minister of Law and Human Rights Amir Syamsudin.

The Government Regulations mentioned that LPKP is capital facilitating agency in order to support the development of youth entrepreneurship, located in the country’s capital of the Republic of Indonesia. “LPKP is functioned to facilitate capital access for Beginner Youth Entrepreneur to star running theirs business,” the sound of Article 3 of the Government Regulations.

The duties of LPKP are: a. To do coordination and synchronization of capital fund activities for Beginner Young Entrepreneur; b. To do data collection of capital fund sources; c. To facilitate capital distribution for Beginner Young Entrepreneur; d. To suggest the Beginner Young Entrepreneur to obtain capital from Capital Agency; and e. To provide the manual of technical assistant in financial management field.

Organizational Structure

In the Government Regulations, it is explained that the organization of LPKP consists of: a. Director; and b. Executor.

In Director Structure, President SBY acts as the Founder, Vice President as the Chairman, and Minister of Youth and Sports Affairs has double roles as the Secretary and member. As for the members of directors, there are 6 Ministers who work in ex officio.

“Directors have duties to give direction and coaching to the executors,” it is written in Article 7 of Government Regulations Number 60 of 2013.

Meanwhile the executors are the working unit of Echelon I in Ministry of Youth and Sport Affairs who in charge in Youth Entrepreneurship Affairs and helped by 3 (three) working groups at the most, and each working group has 5 (five) members at the most.

“The member of working group is from government and professional elements which determined by the Head of Executor,” as written in Article 10 Verse (4,5) of Government Regulations Number 60 of 2013.

In order to support the implementation of duties, LPKP is helped by a secretariat in ex officio and it is executed by the working unit that in charge in youth entrepreneurship in Ministry of Youth and Sport Affairs.

According to this Government Regulations, the Local Government may create Local LPKP. At province level, it may be created by Governor, and at County/City level may be created by Head of County/ Mayor.

“The needed fund for the implementation of LPKP’s duties will be charged to National Budget through Ministry of Youth and Sport Affairs’ budget, meanwhile the fund for duty implementation of LPKP in province, county/city will be charged to each Local Budget,” as written in Article 21 of the Government Regulations.

Besides the functions and duties that has been mentioned, in this Government Regulations, it is affirmed that LPKP undertake the institution capacity strengthening function for Young Beginner Entrepreneurs.