Complicated and time-consuming regulations remain the number one hurdle for foreign investors in Indonesia, choking essential support for its ever-growing startup ecosystem, a Google insider said.
Sebastian Trzcinski-Clement, Google's head of developer relations and startup ecosystem in Asia, Africa and the Middle East, said that despite an effort from the government to improve the business climate in recent years, Indonesia remains known as a difficult place to invest for foreign individuals or companies.
The lengthy process to set up a business is another obstacle that foreign investors must deal with. Trzcinski-Clement said it takes around 40 days for a foreign company to establish itself in Indonesia, and suggested the process could and should be as fast and easy as mobile banking, which is already widely used in Indonesia.
"In Indonesia, you can already open an account online as you have mobile banking, why not make it as easy as possible for creating a startup?" Trzcinski-Clement said.
Besides simplifying regulations, investing in education to create better talents will also be crucial in the growing ecosystem as strong talent is the foundation of a successful startup.
In his capacity as a Google team member, Trzcinski-Clement also gives his insights on startup trends in Indonesia and Southeast Asia region in the next few years.
Education technology, or edutech, will be one of the most popular and growing sectors in the coming years, particularly in Indonesia.
The edutech market is expanding rapidly as more and more Indonesians look for accessible quality education online.
(source: The Jakarta Globe)