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Indonesia's Young Entrepreneurs Association
Published on March 27, 2006

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As with most other nations, the Indonesian elite comprises of an interchangeable cast of businessmen and politicians. Whilst in the past, military men would also occupy a privileged position however, this group is slowly losing prominence. By comparison with the military, civilian networks in Indonesia have been less influential. However one group that can be set apart from the rest is HIPMI. Short for Young Indonesian Entrepreneurs Association, former HIPMI members include Muhammad Lutfi, Abu Rizal Bakrie, Fahmi Idris (Current Minister of Tourism) and Agung Laksono.

Yussuf Kalla, the current Vice President of Indonesia and his brother in law are also closely associated to HIPMI. The organisation, whose members are below 40 years of age, was established in 1972 and has existed in Indonesia for more than 33 years. The organisation has produced leading figures in such positions like ministers/state officials, state members and Chairmen of the House of Representatives (DPR / Dewan Perwakilan Rakyat), coordinators of politicals parties and excellent entrepreneurs by national as well as international standards.

The current chairman whose career is speculated to be just as successful as his predecessors, is Sandiaga Uno. Sandiaga took over from former chairman, Muhammad Lutfi, as the latter is now the chief of the Investment Coordination Board. Sandiaga or more affectionately known as Sandy is at the young tender age of 36. He has built his professional career in several local and multinational companies after which he set up PT Saratoga Investama Sedaya (SIS) with Edwin Soeryadjaya, a member of the wealthy Soryadjaya family. SIS specialized in private equity and direct investment. Sandy was well equipped to lead this company as he had experience in Summa Bank (a bank owned by the Soeryadjaya family), as a finance and accounting officer. In addition to his current employment portfolio some of which are active, Sandy heads HIPMI.

HIPMI’s network spans across Indonesia with members numbering on the estimated figure of 75,000 people. These people are spread out over 30 provinces and 228 regencies across Indonesia.

Under Sandi’s leadership, HIPMI has prepared various programmes that focus on the vision and mission to develop small and medium scaled businesses that are able to compete on the regional as well as international market in order to face global competition and free trade. Sandi and the HIPMI board members are working together to achieve these targets. Moreover, under HIPMI’s central organisation chart, Sandi is backed by leading figures such as Solihin Kalla, chairman of HIPMI Combined Trade Department – son of vice president Yusuf Kalla - and Erick Thohir, the 5th HIPMI chairman. Erick Thohir, together with Muhammad Lutfi, set up the Mahaka group. This group is a growing media conglomerate within Indonesia that publishes daily newspapers such as Republika.

All the powerful figures mentioned above, apart from Lutfi, are high-ranking officials in the Golkar Party, which is part of the ‘New Order’ regime that became President Soeharto’s political machinery. At that period, all prominent organisations were under the control of businessmen. The people that were to assume strategically important positions must have passed the pro-‘New Order’ screening.

A similar situation exists for HIPMI. It is no surprise that people regard HIPMI’s members to come from families that are connected to state officials or prominent businessmen under the ‘New Order’ regime. HIPMI secured projects from the government due to their extensive links within the government.

Muhammad Lutfi, a former member of HIPMI, is characterized as young, successful, smart, and trendy. He is seen to be always friendly to the people around him. Although he is only thirty years old, as a former HIPMI chairman, he has emerged as an important figure after being appointed to head BKPM, the Capital Investment Coordinating Board. Moreover, he is closely connected with President Susilo Bambang Yudhoyono (SBY).

One therefore, has to wonder where Sandi is set to go after his tenure as HIPMI chairman. Sandy has outlined his goals for HIPMI. “As the Chairman of HIPMI, I have prioritised several targets, including support young entrepreneurs, especially those within HIPMI, to emerge as the cluster of middle-class entrepreneurs.”

Indonesia is in a constant state of change but some things still seem to weather the storm. Political parties such as Golkar have had to reinvent themselves, organizations like HIPMI however, are made of sterner stuff. It still retains its mystique as the organization that produces young dynamic leaders. Looking at the current chairman, HIPMI is still a force that moulds the future icons of Indonesia.

Convenient acanthus while.