Indonesia Government Created “Kemlu for Startup” to Strengthen Digital Economy Ecosystem

The current level of world economic growth is the lowest since the global financial crisis a decade ago, while the growth rate of international trade is at its lowest since 20 years ago. Facing this phenomenon, Indonesia should have a good strategy.

Indonesia has a 5.08 percent economic growth this year. For this reason, it must encourage a domestic-based ecosystem and competitiveness that can compete at the international level. This was conveyed by Deputy Foreign Minister Mahendra Siregar in an open discussion held by the Ministry of Foreign Affairs.

In this open discussion entitled “Ministry of Foreign Affairs for Startup: Attracting Local and International Venture Capital Investment,” the ecosystem that is currently considered needs to be improved is the digital economic ecosystem. Startups become one of the focuses on this discussion.

A startup in the context of combining digital and information technology becomes a critical factor in Indonesia’s economy in the future. At the same time, it is important for the main pillar of the Ministry of Foreign Affairs in economic diplomacy.

This is specifically important because Indonesia has several factors that other countries do not have. “We have young people who are more dynamic, more creative, and full of potential to develop in the future. Then, Indonesia is a democratic country,” Mahendra said.

Startups Can Support the “Indonesia 2045” Vision

Mahendra explained that as a democratic country, people in Indonesia are critical, open, transparent, and used to with dialogue as well as interaction. However, there are still many people who lack access to markets, capital, understanding, and access to the international world.

He emphasized that these three elements made Indonesia crucial in terms of startups and the digital world in the future. Meanwhile, the Minister of Research and Technology / Head of the National Research and Innovation Agency, Bambang Brodjonegoro, said the government wanted more startups to be born in Indonesia.

The government is particularly hoped startups based on the technology could increase in number later. According to him, startups can play a role to support the vision of “Indonesia 2045” because Indonesia already has all the requirements to become a developed country except for innovative and quality entrepreneurs.

“It means that if Indonesia can’t increase the number of entrepreneurs and their quality, it will be difficult for Indonesia to become a developed country. It will be difficult for Indonesia to imitate what South Korea, Japan, and Taiwan did in the past,” Bambang added.

Bambang also explained that the lack of businessmen in Indonesia won’t bring the country to do what China has done lately.  The CEO of PT Global Digital Prima Ventura, Martin B. Hartono, revealed what was more important was not how many startups were born but how many startups became successful.

More Successful Startups Should Appear through “Kemlu for Startup” Forum

According to Martin, as a maritime country, Indonesia needs to encourage the birth of startups in the shipping field. Moreover, the world faces global climate change and fossil fuels will also be used up. So, he advised the government to think about how the ship could adapt to these two.

The “Kemlu for Startup” (Ministry of Foreign Affairs for Startup) forum is expected to embrace more young people with innovations that can improve the competitiveness of Indonesia’s digital industry. This activity also provides an opportunity for 82 startups to do speed dating with seven leading venture capital.

“Kemlu for Startup” was attended by 361 startups. Also present were representatives from various government agencies and foreign diplomats in Jakarta. Related to the development of startups, the Ministry of Foreign Affairs will collaborate with the Ministry of Research and Technology.

At this point, the Ministry of Research and Technology becomes the party that supervises startups directly through a program called Startups Based on Technology. From 2015 to 2019, the Ministry of Research and Technology has incubated 749 startups and 558 prospective startups.