High Time for Digital Cooperation between Korea and Indonesia(6)

High Time for Digital Cooperation between Korea and Indonesia

There are yet pending issues to tackle in startup fever in Indonesia. Poor IT infrastructures in non-urban areas, shortage of high-skilled workforces and widespread financial illiteracy have taken roots in many parts of the nation. This is where digital cooperation between Korea and Indonesia can take a meaningful step forward. 

What Korea has experienced in the last 20 years in becoming a global digital leader can be valuable asset to the Indonesian journey heading for the digital society. Beginning with promising fields including the fintech and the education, now is the right time for young startups in both countries to join hands with each other and hit the digital road hard.

High Time for Digital Cooperation between Korea and Indonesia(5)

High Time for Digital Cooperation between Korea and Indonesia

As the world's biggest archipelago with 17,000 or so islands, Indonesia has been comprehended to have little choices but to rely upon online or mobile platforms powered by ICT (Information and Communications Technology) to have more people advantaged from the convenience and efficiency of the digital economy. 

In this regard, starting from the e-commerce field followed by sectors like the co-working space and the online travel, young and ambitious startups have been playing prime roles in taking initiatives to bring digital technology into reality. What COVID-19 has showed to the Indonesian society has served a wake-up call to this irreversible trend of the digital Indonesia.

High Time for Digital Cooperation between Korea and Indonesia(4)

High Time for Digital Cooperation between Korea and Indonesia

It seems that Indonesia has caught eyes of the global investment experts more actively than Singapore in the regional competition of startup waves. The potential for growth in the country's digital industry has made it attractive to investors and entrepreneurs alike. 

Actually, a growing number of venture capitals and startup accelerators have sensed exceptional business opportunities of Indonesia especially in terms of the market size. This favorable viewpoint has led to produce thousands of startups and 5 unicorns across the country. Against this background, it may not be too much to say that Indonesia will remain as a critical pillar of the regional digital ecosystem.

High Time for Digital Cooperation between Korea and Indonesia(3)

High Time for Digital Cooperation between Korea and Indonesia

It is Singapore and Indonesia which has been spotlighted the most for the startup frenzy in Southeast Asia. The two countries have been in the forefront of the development of the digital economy in the region. 

Singapore has been recognized to incubate the advent of the digital era with its strong commitment to innovation while Indonesia has been viewed to beef up the digital fever based upon its presence as the most sizeable playground. The fact that 9 out of 11 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the ASEAN digital economy.

High Time for Digital Cooperation between Korea and Indonesia(2)

High Time for Digital Cooperation between Korea and Indonesia

In fact, startup boom deserves named as one of the hot issues in Southeast Asia since mid-2010s. Startup markets across Southeast Asia have been rapidly gaining momentums. Local leaders of the digital economy such as Grab in Singapore which acquired the Southeast Asian business unit of Uber in 2018 have been acclaimed for changing the conventional industrial map in the region.

Consequently, as many as 11 unicorns, privately held startup companies valued at over $1 billion, have emerged from various industries such as the mobility, the e-payment and the online game.

High Time for Digital Cooperation between Korea and Indonesia(1)

High Time for Digital Cooperation between Korea and Indonesia

Indonesia, the largest economy in ASEAN (The Association of Southeast Asian Nations), is one of the key counterparts of the New Southern Policy initiated by the Korean government.  Bilateral relations between Korea and Indonesia have been continuously improved and were finally elevated to a special strategic partnership in 2017. 

Now the two countries have their 75th Independence Day, Korea on Aug 15th and Indonesia on Aug 17th, come just around the corner. Digital cooperation spearheaded by startups in both countries can be a new topic of the time when the deadly COVID-19 pandemic has further spurred the necessity of the digitalization of the Indonesian society.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(51)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

I can't help agreeing this view and admitting drawbacks of my research to some extent. In this context, I will try to allocate more time and energy in listening to various opinions of the related parties in Singapore and Indonesia to have my research upgraded. 

Needless to say, plentiful hands-on experiences to monitor real-time developments of the AEC in the two countries would provide my succeeding papers constantly looking into the relation between Singapore and Indonesia with more balanced and up-to-date insights.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(50)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

This is why extra active commitments of the Indonesian government to the AEC and ongoing engagement of the Singaporean government for the success of the AEC remains essential at this critical juncture. 

Although local perspectives on the AEC mostly extracted from the publications cited above consist of primary sources for my argument, this paper may be potentially exposed to criticisms indicating lack of real comments on the spot.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(49)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Perspectives and following readiness of the two countries toward the era of the AEC, though not entirely, are necessary to keep paced with each other. Otherwise, outputs of the more sophisticated regional economic integration may be distributed in a one-sided fashion. 

If Singapore carries on being overwhelmingly outshined along with the AEC, political and diplomatic relation between the two countries may be subject to be worsened accordingly.