REPUBLIKA.CO.ID, JAKARTA -- Micro, small and medium scale businesses will face heavy challenges in 2014, an entrepreneur association executive said.

"They will face unfavorable business climate. Among constraints businesses will face include weakening rupiah exchange value, increasing inflation, gas price hike and high banks' lending rates," Andhika Anindyaguna, the chairman of the Indonesian Young Entrepreneurs Association, Jakarta branch, (HIPMI DKI), said.

He made the remarks when announcing on Monday the names of five candidates nominated to chair the HIPMI DKI for the 2014-2017 term of office.

The HIPMI DKI chairman said the tasks of the executives of the organization ahead were not easy. This was owing to the fact that most of its members were new young entrepreneurs. They will need support amid unfavorable economic conditions.

The five candidates nominated for HIPMI DKI chairmanship in the next term of office are Agus Pamungkas, Gernando Nainggolan, Iskandarsyah Ramadhandatau, Rishi Wahab, Yuke Yurike.

Andhika said whoever elected chairman must be able to open access to low-interest funds for the organization's members as the previous executives had done.

He said that during his three year leadership, HIPMI DKI focused on opening access to cheap funds, among others, by establishing cooperation with Bank DKI and Askrindo.

It also relaunched the HIPMI BPR smallholders' credit program after restructuring its management.

The HIPMI DKI chairman said business climate was the barometer of investment both in the beginning and at the end of the year.

The inflation rate recorded at 8 to 9 percent as a result of fuel price hikes and an increase in the gas price, will further burden young entrepreneurs.

He also expressed hope that the implementation of the legislative and presidential elections this year would not drive down the economic growth.

According to Andhika, the Jakarta governor has made a lot of breakthroughs, such efforts to overcome traffic woes by building a number of infrastructures and to ease the process of obtaining licenses.

On the occasion, he expressed hope that the new HIPMI DKI executives would also build business capacity and increase competitiveness in the face of free trade.

He said that HIPMI DKI now had 3000 members, most of whom were micro or small scale businessmen with weaknesses, among others in terms of capital and collateral.

In fact, there are 60 million small scale entrepreneurs in Indonesia who share the same problems with HIPMI members.

HIPMI has strong commitment to reducing the country's unemployment rate by providing training for members who wanted to become successful businessmen.

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