Indonesian ministry rebrands UMKM 'actors' as 'entrepreneurs'

Indonesia's Ministry of Micro, Small, and Medium Enterprises (UMKM) has officially changed the terminology used for UMKM business owners, replacing the word 'pelaku' (which can connote perpetrator or actor) with 'pengusaha' (entrepreneur). This rebranding aims to eliminate negative associations and foster a more positive and motivating environment for those operating at the micro, small, and medium enterprise level.

Berry Fauzy, Head of the Micro Business Supply Chain Division at the Ministry of UMKM, announced the policy change, stating that the term 'pelaku usaha' (business actor) often carried negative connotations. "Therefore, to encourage UMKM entrepreneurs, we have changed it to 'pengusaha'," Fauzy explained during a business meeting in Tanjung Selor, North Kalimantan. The ministry intends to instill a paradigm shift, positioning UMKM businesses not as a fallback option due to a lack of other employment opportunities, but as a proud and chosen path for entrepreneurship.

"We want UMKM to be not just a compulsion, but a choice of business. Because some feel being in UMKM is out of compulsion. In fact, UMKM is a choice to do business," Fauzy elaborated. By using the term 'pengusaha,' the ministry hopes to boost the entrepreneurial spirit among owners of micro, small, and medium businesses. This new terminology will be disseminated nationwide.

In addition to the name change, the ministry is committed to integrating local UMKM businesses into industrial supply chains. During the same event, Berry Fauzy witnessed the signing of an agreement between the North Kalimantan Provincial Government and two major companies. This collaboration aims to ensure that local UMKM play a significant role in the region's industrial supply chains. Governor Zainal A Paliwang emphasized that industrial growth in the province must provide tangible benefits to the local community, stating, "We must encourage North Kalimantan UMKM not just to be spectators in their own home, but to be main players in the industrial supply chain."