Indonesian Government Provide a Boost to Local Start-Ups

The background graphic looks familiar: http://bit.ly/gqvCMS

The digital start-up scene in Indonesia has finally attracted the government’s attention. Through the Department of Commerce, it plans to set regulations that will make it easier for local startups to get funding.

The statement comes from trade minister Mari Elka Pangestu, one of the keynote speakers at Indonesia’s Creative Products Week (PPKI) 2011. She noticed that many local digital start-ups were acquired by foreign parties, showing that investors abroad have begun to notice what’s going on in Indonesia. Not many local businessmen are willing to invest in local start-ups since they don’t really understand the business model and doubt the capital return. To make up for this the government is trying to bridge the two. She explained:

Mari Elka Pangestu

This year the Ministry of Commerce has started a roadshow to the banks, especially outside the capital city so they would have good understanding about the business models of creative industries, especially the digital industry. I am grateful to angel investors, joint ventures, and incubation projects that have helped provide capital for start-up companies. Looking ahead, the government will set up capital regulations for start-ups so they can get access to capital from the banks.

So far there have been several local companies which have helped to build digital start-ups, like what Telkom did with its Indigo Fellowship program.

Now that the government has begun to encourage the development of domestic technology, it is reassuring to see that it recognizes the potential in digital industry as well. I hope this is not just talk from government, and that it will be seriously carried out to work towards a brighter digital future for Indonesia.

[Source: Kompas. Image: IndonesiaKreatif, karbarbisnis]