American businesswoman, author and investor, Barbara Corcoran sold her real estate business in New York to National Realty Trust (NRT) for US$66 million in 2001.
She once said, “finding opportunity is a matter of believing it’s there.” At Seven Stones Indonesia, we think that’s a very positive sentiment and one that’s relevant in these challenging times, especially for Indonesia, so let’s look at one aspect of Indonesia’s future and recovery we believe is worth believing in.
Local news wires have recently been reporting on something published by the Cabinet Secretariat of The Republic of Indonesia where President Jokowi said, “as a region with the world’s fastest internet growth, ASEAN has enormous digital economic potentials. Amid the pandemic, the digital economy grew by US$100 billion in 2020. This could be a stepping stone for economic growth in our region,” adding that the Indonesian government has drawn up the Digital Indonesia Roadmap for 2021-2024, as a strategic guideline for Indonesia’s digital transformation.
And that transformation is happening as we speak.
Taste the Future
Nusa Bali reported on Jokowi’s speech to the ASEAN Business and Investment Summit recently, where he claimed that Indonesia has recorded 2,229 start-ups to date, the fifth-highest in the world. He went on to say investment in Indonesia’s digital future is something investors could actually “taste” and the potential value of the country’s digital economy could be as high as US$124 billion by 2025, that’s just four years from now.
Of these 2,229 start-ups, six are Unicorns, valued at US$1-billion and one is a Decacorn, which means it’s valued at US$10 billion. Jakarta Globe say the main driver of Indonesia’s tech revolution “is e-commerce, followed by transport and food delivery. The virtual classroom or the so-called ed-tech and health tech have particularly grown during the COVID-19 pandemic,” which Dr Rudy Salahuddin, Deputy for Coordination of the Digital Economy, Employment, and Micro, Small and Medium Enterprises, says has been “a blessing in disguise for the development of a digital economy.”
According to a report by Bloomberg, Gojek and Tokopedia are merging into GoTo. The company will be made up of Gojek’s ride-hailing operations, Tokopedia’s e-commerce business and a designated Fintech unit. Gojek’s and Tokopedia’s combined valuations on CB Insights would make GoTo the 12th highest-valued startup in the world, worth US$17 billion. This merger would create Indonesia’s presence among the World’s Top 20.
Recovering from the Pandemic
Dr Salahuddin went on to say, “the situation (COVID-19) has brought many benefits for us by promoting more innovation, increasing inclusiveness, and producing efficiencies. We all realise that the acceleration of digital transformation should be prioritised in our effort to recover from the COVID-19 pandemic.”
This digital revolution is more than start-ups, which Forbes defines as “young companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers. Start-ups are rooted in innovation, addressing the deficiencies of existing products or creating entirely new categories of goods and services, thereby disrupting entrenched ways of thinking and doing business for entire industries.”
Investing in a Golden Indonesia
At an online conference held by Amazon Web Services (AWS), Tourism and Creative Economy Minister Sandiaga Uno said that to achieve the administration’s long-term goal of a Golden Indonesia, “we must side with the people and ensure a development that leaves no one behind. This includes an inclusive digital acceleration. If we can get 30 million out of 60 million MSMEs online, then the remaining half can become part of the sub-ecosystem of those who have adopted technology,” as reported by Jakarta Globe.
The Cabinet Secretariat of The Republic of Indonesia report that President Jokowi believes collaboration and unity are critical for ASEAN to recognise the opportunities in recovering from COVID-19. He explains three key areas where ASEAN can do this; health care, safe travel, and tourism and the acceleration of digital economies.
These are exciting times for those who believe in Indonesia’s future. At Seven Stones Indonesia, we do and we believe in the power of a positive mindset. We believe in helping our clients, partners, and communities create a better world by adapting to change and focussing on what matters most to them. We deliver solutions, peace of mind, and we help businesses grow; we encourage investment and are forging relationships with like-minded organisations and businesses to create more opportunities for more people.
Sources: Jakarta Globe, Forbes, Nusa Bali, Bloomberg, Cabinet Secretariat of The Republic of Indonesia