JAKARTA, Indonesia, Nov. 5, 2021 /PRNewswire/ — The startup scene, particularly in Indonesia, is now seen as a major factor in the road to economic recovery, due to the successful collaboration between startups and the government through the Ministry of Communications and Informatics.
The Indonesian government has been aggressive in promoting the startup scene with various program catering different stages of startups, from early-stage ideation to business matchmaking with industry stakeholder, mainly in vital sectors such as agribusiness and SMEs.
Agriculture, for example, has become the growing sector with a significant increase in export of nearly 10% during the challenging period of 2020’s first semester. Another promising sector is small and medium enterprises (SMEs), which will be an essential driver of the national economic. Currently, there are over 62 million SMEs, or equivalent to one SME for every five Indonesians. Therefore, the use technology and automation will be a vital movement to help them escalate the business.
Booming tech industry
Just last year, 52 startups in Indonesia were able to raise US$1.9 billion, according to the Indonesian Venture Capital and Startup Association (Amvesindo) and the rise in agriculture and SMEs has driven more startup industries to scale up. Logistics and supply chain, for example, have seen increased interest from investors, with a huge chunk of resources and funds have been pouring in technology-centered markets such as AgrITech, EdTech, and SaaS.
This is because the tech industry in the region is booming. Southeast Asia already has around 400 million internet users. This year, it is expected that around 80% of the region’s population (aged 15 and above) will be classified as digital consumers, according to a report by Facebook and Bain & Company.
This bodes well for investors and venture capitalists in the tech industry, such as those who have bases in technology hubs such as Singapore. Investing in tech companies now can put them ahead, as in Indonesia alone, the information and communications technology (ICT) sector is expected to lead economic growth, with a potential growth of 9.8 to 10.3 percent in 2022, according to a Fiscal Policy Agency (BKF) projection.
“We have also seen a direct impact on people and communities from the tremendous growth of tech and startup sectors. An example is the growth of tech-powered logistics and delivery services that have proved invaluable to everyone during this pandemic,” said Semual Abrijani Pangerapan, Director General for Informatics Applications, Ministry of Communications and Informatics.
Government startup support
Indonesian government has continued to launch programs and initiatives aimed at cultivating the startup scene. The Ministry of Communications and Informatics is intent on bridging the gap between investors and startup founders by developing programs such as the on-going Joint Exhibition & Junction of Startup Landscape in Indonesia or JEJALA ID.
JEJALA ID is a four-month networking event which spans multiple regions all over the world. The program was designed to not only help startup founders secure funding, but also for investors and venture capitalists to understand the Indonesian market and how to best share their resources to help grow the entire industry.
The JEJALA ID has already started its pre-event roadshow, kicking off last October 29 for Japan investors and successfully attracting over 25 Japanese investors in the roadshow
The next leg of the pre-event roadshow is slated to happen on November 12, 2021, focusing on investors from Singapore. The next JEJALA ID’s pre-event roadshow will be attended by Semual Abrijani Pangerapan as well as notable business personalities, including Pamitra Wineka (CEO of Tanihub) and Adrian Gilrandy (CEO of PTS.sc)
The Singapore pre-event roadshow Zoom webinar will happen at 10AM-11AM Singapore time. For more information about JEJALA ID and to register, please visit https://jejala.id
About the Ministry of Communications and Informatics
The Ministry of Communications and Informatics is the official government agency of Indonesia tasked with formulating and implementing national policies in the field of communication and informatics. It is also responsible for accelerating the distribution of information technology and digital infrastructure so that the public can have efficient access to up-to-date telecommunications and internet networks.
SOURCE Ministry of Communication and Informatics of Republic of Indonesia