Indonesian Trainees in Japanese SMEs, Capital Accumulation and Micro-Small Business Development in Indonesia: A Preliminary Study

Abstract

Indonesia is one of the world important suppliers of young trainees in Japan. We present a preliminary study’s result on Indonesian trainees in Japanese SMEs and their potential to develop micro-small business in Indonesia. This paper utilizes three step approaches. First, an online survey of potency of Indonesian trainees in Japan has been conducting since October 2007 followed up by a Japan-wide Entrepreneurship and Banking Trainings (PWEP). Second, web-based business start-ups consultation forums for Indonesian trainees have been conducted since January 2008 followed up by networking creation with Bank of Indonesia. Third, a key performance indicator of business proposed and money invested was developed. We report three main findings: first, over 70% of Indonesian trainees were working at manufacturing-based Japanese SMEs and might acquire a necessary human capital in developing micro-small manufacturing-based business start-ups. In addition, more than 60% of them could save their income at least 25-40% of their total monthly income, suggested that capital foundation required for business creation might then be compromised. Second, the structural constraint of unmonitored Indonesian trainees might cause problems in which—after having cultural distress while working in Japan and less conducive condition in managing their capital after returning to Indonesia—the potential to become an law-breaking overstay workers is considerably high and might cause a more sophisticated problem in the future. Third, the importance of directing step for Indonesian trainees who are interested in creating businesses and key performance indicators for measuring its achievement are acknowledged.Indonesian trainees, Japanese SMEs, PWEP, capital accumulation, key performance indicator, compliance meter