Tech on the ballot as Indonesia votes

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Hello reader,

As a child, elections only meant one thing to me: a day off school.

I know now elections have more significance than that. Well, at least most do.

I come from Northern Ireland, where politicians can agree on so little that we’ve only had a functioning government for two of the past seven years. So whenever my home country elects its “leaders,” you can forgive my cynicism for wondering how much the outcome matters if those elected refuse to work together.

One upcoming election that certainly has a great deal of significance is Indonesia’s presidential poll. As today’s premium story dives into, the result will determine whether the new government carries on Joko Widodo’s legacy.

Those in the regional (and indeed global) tech and startup ecosystem are keenly watching to see if his digital economy-friendly policies will continue.

Today we look at:

• What Indonesian presidential hopefuls plan to do for the tech industry
• The key takeaways from Uber’s Q4 2023 results
• Other newsy highlights such as Sea Group’s Singapore digibank reaching an AUM milestone and Thailand scrapping a tax on digital asset trading.

Premium summary

Indonesia goes to the polls

Image credit: Timmy Loen

On February 14, millions of Indonesians will cast their vote for the country’s new president, and simultaneously shape the country’s tech future.

Indonesia’s digital economy was worth almost US$80 billion last year, and the policies of outgoing President Joko ‘Jokowi’ Widodo are widely credited for boosting it. But the candidates to replace him are divided on whether they should be continued.

• TikTok divergence: Frontrunner Prabowo Subianto is firmly in the camp of carrying on Jokowi’s policies, including the ban on direct transactions on social media that was enforced last year. This ban sparked TikTok’s acquisition of local ecommerce player Tokopedia, and the election could also influence the partnership between the two companies. Other candidates – former Jakarta governor Anies Baswedan and former Central Java governor Ganjar Pranowo – would like to revisit the regulations to tackle the extremely cheap products being sold on TikTok Shop instead.
• Electric feel: Jokowi pushed hard for electric vehicle adoption in the country, with policies such as purchase subsidies and tax incentives. The Subianto campaign spokesperson told Tech in Asia that he would continue the outgoing president’s policies, including completing the construction of Indonesia’s largest EV battery factory in Karawang, West Java. Pranowo’s campaign team, however, said he wanted the government to push foreign EV companies to share knowledge with domestic players.
• In agreement: One thing all the candidates agree on is the need to make it easier for Indonesia to attract foreign investment. This would include streamlining regulations, offering tax breaks, and launching funding programs for startups. Dondi Hananto, a partner at the Singapore-based VC firm Patamar Capital, said that administrative hurdles in Indonesia have prompted many startups to prefer creating entities in Singapore.

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