Global eyes on startup fever in Indonesia
These advantages of the two countries, namely Singapore in quality way and Indonesia in quantity way, have been exercising salient powers in generating most notable startups in the region.
The fact that 8 out of 10 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the developments of the digital economy.
Global eyes on startup fever in Indonesia
Among 11 countries in Southeast Asia, Singapore and Indonesia has been viewed as spearheading the advent of the digital economy across the region. It is little doubt that Singapore is the financial and technological hub of Southeast Asia with its delicately developed free-market economy.
Blessed with the world’s 4th largest population of around 260 million people, Indonesia takes approximately 40% of the total GDP of the Southeast Asian economy.
Recent startup boom across Southeast Asia(4)
There is eye-catching prediction that a whopping 480 million people almost nearing the entire inhabitants of the European Union will be fairly accessed to internet in Southeast Asia by 2020. This could explain why global investment experts have been paying closer attention to this area where the youth covering roughly half of the whole population are climbing on the brand new era of the digital economy.
In this sense, it may not be too much to say that a rosy outlook on the startup fad in Southeast Asia is likely to be maintained for the time being.
Recent startup boom across Southeast Asia
VNG, an online game platform in Vietnam and Go-Jek, an Indonesian application-based ride-hailing service provider are renowned digital players. Why startup markets in Southeast Asia have been much spotlighted?
Hugh growth potential in the region would be singled out above all things. The number of internet users in key countries of Southeast Asia like Myanmar and the Philippines has been mounting the fastest on the planet.
Recent startup boom across Southeast Asia
According to Tech in Asia , startups in Southeast Asia were awarded with as much as $10.9 billion in investment in 2018. This figure is over 30% higher than the total startup investment of $7.9 billion in 2017.
This is far startling because investment in Southeast Asian startups failed to reach even $1 billion in 2013. Consequently, 10 unicorns have been emerged in the region.
Recent startup boom across Southeast Asia
Startup boom deserves to be named as one of the hot issues in Southeast Asia these days. Startup markets across Southeast Asia have been rapidly gaining momentums.
As a matter of fact, locally born leaders of the digital economy such as Grab in Singapore which acquired the Southeast Asian business unit of Uber in early 2018 have been credited for redrawing the conventional industrial map in the region.
Spread of mobility service and Indonesian cashless society
It goes without saying that spread of mobility services accelerated by transplantation of e-payment on mobile gadgets has raised the expectation of a cashless society in Indonesia.
As a result, financial environments without cash have been actualizing inch by inch. Though a cashless society is still at its infant stage, hopes are higher than ever that a cashless society will advance the national dream of digital Indonesia into reality.
Spread of mobility service and Indonesian cashless society
Huge success of two mobility startups in Indonesia can be partly attributed to the introduction of e-payment methods to their applications. Go-Jek and Grab added electronic payment function to their applications back in 2016.
In a country where less than 10% of the population holds credit cards, implementation of e-payment system on mobile devices served as a game changer for the leapfrog of the mobility market.
Spread of mobility service and Indonesian cashless society
Mobility service is often acclaimed as the leading trailblazer of the Indonesian digital economy. It is due to the rapid development of the mobility industry mainly triggered by ever-intensifying competition between Go-Jek and Grab, two and only decacons, privately held startup companies valued at more than $10 billion, in Southeast Asia.
Both Go-Jek and Grab have risen to their fame as supper applications inevitable for daily lives.
Global eyes on startup fever in Indonesia
As the world’s biggest archipelago with 17,000 or so islands, Indonesia has little choices but to rely upon online or mobile platforms to have more people advantaged from the convenience and efficiency of the digital economy.
Beginning from the e-commerce field followed by sectors like the mobility and the fintech services, young startups have been playing crucial roles in taking initiatives to bring digital technology nationwide.
Global eyes on startup fever in Indonesia
Singapore and Indonesia has been viewed as spearheading the advent of the digital economy across the region. Singapore is the financial and technological hub of Southeast Asia whereas Indonesia takes around 40% of the total GDP of the Southeast Asian economy.
The fact that 8 out of 10 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries.
