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INDONESIA ’ S GOVERNMENT INCREASES COLLABORATION WITH START-UPS , FOCUSING ON AGRITECH AND SUPPLY CHAIN FOR SMES
The start-up scene , particularly in Indonesia , is now seen as a major factor in the road to economic recovery , due to the successful collaboration between start-ups and the government through the Ministry of Communications and Informatics .
The Indonesian government has been aggressive in promoting the start-up scene with various programmes catering to different stages of start-ups , from early-stage ideation to business matchmaking with industry stakeholders , 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 economy . Currently , there are over 62 million SMEs , or equivalent to one SME for every five Indonesians . Therefore , the use of technology and automation will be a vital movement to help them escalate the business .
Booming tech industry
Just last year , 52 start-ups in Indonesia were able to raise US $ 1.9 billion , according to the Indonesian Venture Capital and Start-up Association ( Amvesindo ) and the rise in agriculture and SMEs has driven more start-up industries to scale up . Logistics and supply chain , for example , have seen increased interest from investors , while a huge chunk of resources and funds have been pouring into technology-centred markets such as AgrITech , EdTech and SaaS .
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CURRENTLY , THERE ARE OVER 62 MILLION SMES , OR EQUIVALENT TO ONE SME FOR EVERY FIVE INDONESIANS .
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“ We have also seen a direct impact on people and communities from the tremendous growth of tech and start-up sectors . An example is the growth of techpowered 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 .
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 potential growth of 9.8 % to 10.3 % in 2022 , according to a Fiscal Policy Agency ( BKF ) projection . �
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