Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(7)

Global eyes on startup fever in Indonesia

It seems that Indonesia has caught eyes of the global investment industry more actively than Singapore in the regional competition of startup waves. A growing number of venture capitals and startup incubators sense exceptional business opportunities of Indonesia especially in terms of the market size.

In fact, 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.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(6)

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.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(5)

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. 

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(4)

Recent startup boom across Southeast Asia

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.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(3)

Recent startup boom across Southeast Asia

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. 

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.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(2)

Recent startup boom across Southeast Asia

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. 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? 

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(1)

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. According to Tech in Asia , startups in Southeast Asia were awarded with as much as $10.9 billion in investment in 2018.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(8)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

Local startup founders have made unanimous voices that success stories of mainland Chinese startups have inspired them a lot. It is a shame that Korean startups are rarely mentioned for role models of Southeast Asian young entrepreneurs. 

Beginning with promising industries including fintech, education and mobile games, now is the right time for Korean startups to hit the digital road hard in Southeast Asia.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(7)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

With the exception of Singapore, capital markets and legal and institutional systems for startups in the region aren’t well devised and developed as well. 

However, venture capitals, symbols of adventurous money would remain indifferent unless they feel confident of more gains than losses by stepping into the digital frenzy in Southeast Asia. This also holds true to Korean startups and venture capitals gearing up to carve out the Southeast Asian market. 

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(6)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

This could explain why global investment experts have been paying close attention to this area where youngsters covering around half of the overall population are jumping on the brand new era of digital economy. 

There are yet pending issues to tackle in startup fever in Southeast Asia. Poor IT infrastructures in non-urban areas, shortage of high-skilled work forces and widespread financial illiteracy have chronically taken roots in most parts of Southeast Asia. 

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(5)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

High growth potential in the region would be singled out above all things. The number of internet users in key countries of Southeast Asia like Vietnam and the Philippines has been increasing the fastest in the world. 

According to an article from the Wall Street Journal, whopping 120,000 online users are newly reported in the region on a daily basis. There is further prediction that 480 million people almost nearing the entire population of the EU (European Union) will be accessed to internet in Southeast Asia by 2020.