To be the “disruptor” rather than getting disrupted in the current outlook is perhaps the way of life to ensure a sustainable and resilient economy. This ideology has been put for by Indonesia – a youthful nation that set its tone for rapid digital transformation and startup incubation provider is poised to become the next Silicon Valley of South East Asia. So how exactly did Indonesia get started in this sector? Let’s find out more.
Indonesia’s President Joko Widodo is one of the key reasons behind the boom in the start up scene. The government has been directed to render assistance to startups and make transactions seamless for qualified companies to receive bank loans at a lower interest rate. This strategy has placed the car into self-driving mode and propels Indonesia’s digital economy from a initial valuation of $40 billion dollar in 2019 to a whooping projection of $133 billion in 2025. With a total tally of 2,193 startups as of 2020 including four unicorns (valuation>1 billion) and one decacorn (valuation>10billion), the Indonesia startup scene is currently ranked number five in the world just behind the United States, India, United Kingdom and Canada.
With greater exposure and increasing demands to digital products, it has created a circular economy cycle for start-ups to plant their root, nourish their ideas, harvest products and deliver them to the masses in Indonesia.
Hunger for technology
Indonesia’s population of 260 million people makes them the 4th largest in the world, 60% of whom are under 40. The youthful population are generally more technologically-savvy and can be leveraged to meet the target mobile penetration rate of 78% in year 2020. With greater exposure and increasing demands to digital products, it has created a circular economy cycle for start-ups to plant their root, nourish their ideas, harvest products and deliver them to the masses in Indonesia. An example of such is GoJek, a startup first established in Indonesia in 2009 as a call center to connect consumers to courier delivery and two-wheeled ride-hailing services.
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A career in the gig economy seems to be go-to career choice for most young graduates. Having a appraisal system skewed towards performance-based model, lively open-concept offices and free treats at company’s pantry greatly appeal to the workforce of tomorrow. Putting the perks aside, companies should look up to Indonesia’s aggressive digital transformation model and up-skill consistently to stay ahead of the game.