NextICorn Foundation Announced NExT Initiatives in Dinner Hosted With BKPM
From Jimbaran to the World: The NextICorn International Summit 2019
06 Nov 2019
The Right Time to Do Business in Indonesia
How challenging is doing business in Indonesia? A lot of investors are still in doubt when it comes to putting their money in this country. Complicated, unreliable regulations and licensing process are some of the reasons. However, the fact of the matter is that now is the right time to invest in Indonesia.
President Joko Widodo had stated his view regarding this matter, during a closed meeting this year. The meeting itself was held to address reasons of foreign corporations tend to invest in other countries than in Indonesia. According to the report from World Bank, 33 corporations have stopped investing in China and moved on to Vietnam, Malaysia, Thailand, and Cambodia, instead of this country.
The government is now doing its best to address the situation through programs like the Online Single Submission (OSS) system, which aims to simplify the investment licensing. Although Indonesia has not been very easy for investors, it is actually on the right track. There is also a promising hope in every effort that the government takes, to reform its investment regulations system.
World Bank's recent study, Doing Business 2020, put Indonesia on 73rd position out of 190 countries in terms of ease of doing business. This position is still the same as last year, and far below Joko Widodo's target, that is the 40th. However, the score has risen from 67,96 to 69,6 this year, which is still a good sign.
Here is another good sign: despite the uncertainty of investment regulations, Indonesia manages to become the home of four unicorn start-ups, outnumbering other countries in the region. One of the important factors to this development is the funding of foreign Venture Capitals.
According to NextICorn Foundation Chairman Daniel Tumiwa, foreign VCs are biting the bullet and decide to invest in the currently challenging yet constantly growing country. The reason is that these investors understand this country's potential and they need to be among the first to capitalize on it.
Furthermore, Indonesia has unique local problems that provide opportunities for those who have the solutions. And the ones who stepped up for the challenges are tech start-ups.
This is only natural as the country is dominated by connected consumers. Indonesia is the biggest market in Southeast Asia and the third overall in Asia after China and India. This immense potential is followed by the rapid adoption of smartphones, social media and various digital platforms.
The growth of these start-ups is something that Indonesia has to look after. It will be very unfortunate if their growth is hampered by funding issues. That is why The NextICorn Summit 2019 strives to bridge profitable connections between them, to accelerate the emergence of Indonesia's new unicorns.