Spread of mobility service and Indonesian cashless society
Beginning from the desperate idea of improving chronic traffic congestions in urban districts, both Go-Jek and Grab have risen to their fame as supper applications inevitable for daily lives of the Indonesian people, young generation in particular.
As snowballing amount of investment continues to rush in, anticipation has been getting bigger that the local mobility market will fulfill its growth potentials in a maximum level.
Spread of mobility service and Indonesian cashless society
In tandem with the e-commerce, fintech and online travel areas, mobility service has been 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 rivalry between Go-Jek and Grab, two and only decacons in Southeast Asia.
Global eyes on startup fever in Indonesia
In this regard, it is no wonder that Indonesia has been through hottest startup craze in Southeast Asia over the last decade. Starting from the e-commerce field followed by sectors like the co-working space, the mobility and the fintech services, young and ambitious startups have been playing crucial roles in taking initiatives to bring digital technology into designing customized solutions in a local context.
As Bari Arijono stressed throughout his book, 'Indonesia Digital Nation', digital transformation has been widely undergoing all over major industries in Indonesia.
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.
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
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
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.
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.
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. VNG, an online game platform in Vietnam and Go-Jek, an Indonesian application-based ride-hailing service provider are renowned digital players.
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.
The establishment of the AEC and its implication for South Korea
Worries are prevailing that South Korea is way behind not only the running Japan but also the flying China. Other major players including Australia, America and the North Europe don’t sit idle as well.
Prediction is that the ASEAN may play a crucial role of the last resort to save South Korea suffering from chronic weak growth. Needless to say, systematic and long-term approach is desperately needed in the unprecedented era of the AEC.
The establishment of the AEC and its implication for South Korea
South Korean business people navigating new growth chances have unanimously pointed out that Japanese business presence is dominant in the region. Moreover, China is speeding up recently by utilizing its extensive networks across the region.
China has maintained robust retail and wholesale channels in most part of the ASEAN since around the 16~17th century when the Western forces first embarked on their rush to Southeast Asia. Unlike competitors heading forward, South Korea is often regarded encountered with shabby circumstance.
The establishment of the AEC and its implication for South Korea
In doing so, physical barriers will be torn down and regional exchanges and trades will be fairly accelerated. This will also gear up the possibility of the realization of the AEC overcoming the concern that the AEC blueprint 2025 may remain a mere declaratory gesture.
As a matter of fact, a global war without guns has been underway to attract the ASEAN actively stretching itself to the world. For instance, Japan has been striving to enhance its clout on the AEC by devoting itself to investment on the infrastructure and key industries.
The establishment of the AEC and its implication for South Korea
A local expert in Indonesia pictures potential changes in the region that the AEC may bring in the upcoming days. "People in Vietnam will start to learn the Thai language to drive taxies in Bangkok. There will be Laotians who will pick up Javanese text books to become cab drivers in Jakarta."
Actually, Singapore has been importing housekeepers from its neighbors, Indonesia and the Philippines in particular. However, it will be highly likely that more human resources in various fields of the region will cross the borders of the ASEAN members with no limitation.
