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Indonesia Fosters Digital Start-Up Growth

Minister Johnny G. Plate of Indonesia’s Communication and Information stated that digital start-up players must focus on three aspects of governance to avoid difficulties and achieve economic sustainability. The government is also arranging assistance to ensure the continued growth and development of the digital start-up ecosystem.

Business principles or products and services, financing schemes, and management are the three aspects. If these three aspects are not managed properly, then the company will experience problems, according to Minister Johny. He added that applying business principles is the key to long-term business sustainability in all sectors and that when a company runs into problems, the simplest solution is to lay off or reduce employees.

In fact, the principle of employees is no longer an asset but capital for a business. That’s why the issue of layoff is so sensitive now and is related to the start-up bubble.

– Johnny G. Plate, Minister Communication and Information

The government, in collaboration with telecommunications companies, is actively constructing digital infrastructure at the upstream or upstream level. This is done to help people optimise their digital space.

Minister Johny emphasised the importance of digital start-ups in the digital ecosystem. The opportunities for the digital economy will be well developed with the development of digital infrastructure. Product and service aspects should be prioritised, and the company should be able to generate backup financings, such as venture capital, sponsorship, and management.

“Where are digital start-ups located? In digital downstream. Now when we build ICT infrastructure by trying to build our digital downstream. When the potential of our digital economy is so great, this is where good governance is needed,” he furthered. “The government will handle the regulations, but it is up to the founders to determine whether the services and products produced are relevant or not.”

If the products and services are satisfactory, the company can obtain additional funding, including from venture capital and the sponsor, as well as from its management. These three factors can deal with the emergence of many start-ups.

Furthermore, Indonesia currently holds the sixth spot on the global list of countries with the most digital start-up businesses. As a result, the government is working toward the goal of developing an ecosystem that simplifies the process of increasing investment so that it can better support the growth of its digital ecosystem.

Minister Johnny emphasised that the discussion of digital start-ups is primarily related to technology companies and when talking about technology companies, the government needs to mobilise them by building innovation and creativity in Indonesian children.

He also highlighted the importance of assisting digital start-up founders with idea generation. They have innovative ideas and a technological mindset, but they are not businessmen. What founders require is technology, funding, and management assistance to grow and develop, thus the government’s term scale-up will accompany and foster digital start-ups with the potential to grow.

According to the Minister of Communication and Information, when capital ventures enter digital start-ups, product and assistance selection may be as important as ever. The scaling is simple, but the levelling is complex. The start-up companies will grow until the large financing backup is truly entered, and then the large category will emerge.

Minister Johnny asked all the industry sectors to assist the growth of digital start-up ideas, especially those from among the millennials as well as the formation of a national digital ecosystem because the market for digital goods and services in Indonesia is huge.


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