Indonesia: discover the promise of Southeast Asia’s largest digital playground
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When it comes to technology in Asia, the impression of strong digital infrastructure has always resonated with certain countries: Japan, South Korea, India, Singapore, China…just to name a few. But between the Indian and Pacific Oceans lie the largest island country of Indonesia, who had seen tremendous growth in past years. With the fourth biggest population in the world, she has the potential of becoming a technological superpower in the Asian market. After all, the nation, with a unique combination of a young demographic and a healthy population size, seems like an ideal economy to enter with good prospects of return.
That said, here are some primary insights on Indonesia’s budding technological sector, which will also be keynote focus at Tech in Asia Jakarta 2016’s Main Stage on Nov 16 – 17.
Up, up and away: Indonesia’s internet penetration
For any market to be suitable for tech advances, perhaps one of the most important aspect to look at would be how connected the nation is. While most countries have seen a slower but steady growth in that statistic, Indonesia had a sharp increase of internet users from 2014. Now, half of the population have access to the web, of which majority do so via smartphones! Unsurprisingly, the young of the nation takes a significant cut of the digital pie, with a 100 percent internet penetration rate.
With this foundation, it simply means that Indonesia can no longer be ignored as a potential digital stronghold. Specifically, one key area is directly benefitting from this growth: the app market.
Apps and e-commerce, the first beneficiaries of the nation’s digital growth
Perhaps Go-Jek, Indonesia’s first homegrown startup unicorn, embodies the spirit akin to when Man first got on the Moon: One small app to start, a giant step forward for the industry. There is even a term for it, called the Go-Jek effect. With their success, it is likely that more Indonesian businesses will dabble in the digital field, contributing to the growth of the country’s e-commerce market.
With the recent appointment of Alibaba founder Jack Ma as Indonesia’s ecommerce advisor, as well as Communications and Technology Minister’s intention to support startups financially, the industry might just get the push it needs towards the right direction. However, the current lack of a reliable e-payment system might hinder progress. If improvements are made, the e-commerce market looks promising for years to come.
Moving towards building smarter cities
Another potent area of development from Indonesia’s tech advances comes in the form of smart cities, which has gained momentum and popularity recently. If more smart cities were to emerge, the country would find itself in a much better position socially and economically. However, before then, Indonesia would first need to tackle two key problems.
Firstly, the infrastructure for Internet of Things (IoT) needs to be better invested. A more specific budget allocation in the area would see security in the development process. Next, smart cities would also need to be sustainable, otherwise it might be counterproductive in improving living standards. If said challenges can be resolved, the growing digital framework would definitely aid in improving the nation’s infrastructure.
But first, let’s talk about digital literacy
With the rise of internet penetration rate, the possibilities of using technological tools to benefit the country are aplenty for the archipelago nation. Indonesia is getting more connected, but with social media being the first platform to be integrated, the current concern is that social media mechanisms may be used to spread misinformation, or even threaten people into silence about national issues. Thus, the challenge of improving digital literacy will be necessary, but it is of a tall task.
Active technological use in education would be crucial in moving forward. Fortunately, parties such as Berniaga.com and Indosat Ooredoo have made moves to improve this area. However, efforts like these need to be supported by the ministry for it to be formalized.
Hear it from the experts themselves
Now that you’ve got a rough idea of the digital landscape of Indonesia, why not find out more about what the experts have to say? If you haven’t already heard, the kings of Indonesia tech will be headlining our Main Stage at Tech in Asia Jakarta 2016 next week!
Alongside them, we have a diverse array of speakers from Facebook, Bukalapak, Kudo, Wantedly, Sequoia, 500 Startups, Google, App Annie and more. They will delve deep into Indonesia’s tech ecosystem, share their take and experiences in this field, and how they overcame some of the challenges to reach where they are today.
#tiajkt2016 is just five days away. Get your passes before it’s too late!
It’s really now or never.
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