A consolidated view of the government policies for Indonesia’s tech sector.
The twenty first century has seen Indonesia emerging as one of the tech giants of Southeast Asia, the fastest growing market that has established its place amongst emerging economies. With rapid growth, fundraises as big as GoJek’s $550 Mn in August 2016 and Tokopedia’s $147 Mn in April 2016, the entry of tech stalwarts like Jack Ma with Lazada’s acquisition, and a tremendous increase in the number of startups and SMEs, the country is gearing itself to compete head on with tech majors like the US, China, and India.
The nation is on the edge of an online revolution – fuelled by the rising mobile-first ecommerce, a younger middle class with a rise in spending capacities and the fact that it is one of Asia’s largest populations at 255 Mn. Ecommerce ventures like Matahari Mall and Qoo10 Indonesia are capitalising on these changing patterns and the potential of ecommerce in Indonesia has already tempted many players including East Ventures, 500 Startups, Indosat, and Mountain Kejora Ventures, both foreign and local, to enter the market. On top of that, the country also witnessed the birth of its first unicorn last year, with GoJek rising to unprecedented heights.
More than 95% of the country’s businesses are startups or small enterprises. They now form an integral part of its development trajectory and are significant contributors towards the country’s rising GDP as well.
For a new venture to succeed, in a country where the number of potential entrepreneurs is rising by the day, the role of administrative bodies and government policies towards boosting the emerging tech sector and other financial institutions, becomes very crucial. If done right, it provides startups with that initial support that can ultimately lead towards bolstering their entrepreneurship journey right into becoming a billion-dollar unicorn.