[Startup Struggle ⑥-2] Indonesia "8 Unicorns Within 4 Years"

President Jokowi Emphasizes Deregulation to Foster 1,000 Startups
Government Mediates Gojek-Grab Taxi Conflicts... Upholds Allow-Then-Regulate Approach

Slamet Santoso, Director of Informatization Capacity Building, Ministry of Communication and Information Technology, Indonesia

[Jakarta (Indonesia) = Asia Economy Reporter Han Jinju] "The Indonesian government's support for startups will be continuous, and there are not many regulations. We hope that Korean companies will invest more."

Slamet Santoso, Director of the Informatization Capacity Building Division at the Indonesian Ministry of Communication and Information Technology, whom we met in Jakarta, said, "President Joko Widodo has set the goal of making Indonesia a 'country strong in digital energy,' and in the short term, plans to support increasing the number of unicorns from the current 5 to 8 within 4 years."

As of 2018, Indonesia's digital economy size was $27 billion, accounting for about 40% of the entire ASEAN digital economy. President Joko Widodo emphasized policies to foster the digital economy and pledged to ease regulations related to startups to nurture 1,000 startups.

Outside the Ministry of Communication and Information Technology (KOMINFO) building in Indonesia

Currently, there are about 2,400 startups in Indonesia. The government is focusing on nurturing seven sectors: fintech (finance + technology), mobility, edutech, agritech (agriculture + technology), healthcare, and others. Through the 'Next Indonesia Unicorn' program, overseas investors are invited and meetings with local startups are arranged. Additionally, business workshops, boot camps, and incubation programs are supported to foster 1,000 startups. Director Slamet explained, "Thanks to the expansion of communication networks, the internet penetration rate has increased to 68%, and the market where startups can challenge themselves is growing."

The approach to resolving regulations on startups is also impressive. The Indonesian government follows a model close to 'permission first, regulation later.' When conflicts arise with existing industries, the government convenes to find a consensus. A representative example is resolving conflicts between ride-sharing services and the taxi industry. Thanks to government mediation and Gojek's willingness to coexist, Gojek and the taxi company Blue Bird formed a strategic partnership.

Director Slamet said, "Taxis opposing Gojek held rallies in front of the government, but blocking Gojek could cause other problems, so we tried to understand what both sides wanted and find a solution. Gojek and Blue Bird formed a joint venture, and Grab cooperated with Express, reducing opposition voices. We thought about how to support startups while positively impacting the economy."