The Indonesia Investment Coordinating Board (BKPM) is seeking to accelerate the growth of Indonesia’s highly promising digital economy, which might be the future of the country’s economy amid depleting oil and gas resources, by encouraging more investors to invest in the sector. New investment for digital economy in Indonesia.
According to data from the BKPM, currently Indonesia has four startups with assets exceeding US$1 billion: online ride-hailing app Go-Jek, travel services provider Traveloka as well as online retailers Bukalapak and Tokopedia.
Startups with more than $1 billion in assets are commonly referred to as unicorns, using the mythical animal as a metaphor for these startups’ success in solving consumers’ problems while creating various economic multiplier effects along the way.
The BKPM data also recorded that the Indonesian digital economy had been growing impressively within the last five years, with $3 billion foreign direct investment realized in the sector during the period. Due to the amount of investment poured in to the sector, the BKPM has ranked digital economy at the top of Indonesia’s most promising investment sources. New investment for digital economy in Indonesia.
One way in which the BKPM strives to help the Indonesian digital economy move faster is by encouraging the sector to remain minimally regulated by the government, as it currently is, because minimum regulation could help spur innovations in the sector.
The BKPM, meanwhile, attributed the success of our local digital economy to the high chunk of young digital natives entering their productive ages, plus the country’s growing middle-class with their enhanced access to resources and assets to start their own businesses.
Europe, for instance, has only produced four unicorns so far. Indonesia is advantageous in this sector owing to the fact that it is one of the four most populous countries — China is on top of the list followed by India and the United States. The three countries’ digital economies are also thriving thanks to their big populations. New investment for digital economy in Indonesia is something which will reap benefit in the future.
(source: The Jakarta Post)