Indonesia’s stunning growth doesn’t tell the full story

ABOUT

A recent report by East Ventures found that Java, where Indonesia’s capital Jakarta is located, leads the country in digital competitiveness. (Disclosure: EV is an investor in Tech in Asia.)

The study assessed the archipelago’s 34 provinces based on these indicators: human resources, use and spending for information and communications technology, entrepreneurship and productivity, manpower, economics, infrastructure, financial inclusivity, and regulations.

WHY IT MATTERS

The report also highlighted the challenges that stand in the way of unlocking Indonesia’s full potential.

Outside of Java, internet connection remains spotty and slow. The nation’s education system has been struggling to train people that can excel in internet companies.

Productivity remains low among businesses, which means they’re less motivated to adopt efficient digital tools. A lack of financing options also hampers Indonesian entrepreneurs and hurts their cash flow.

But instead of seeing these issues as obstacles, startups and conglomerates can consider them as opportunities to tackle serious problems and make a real difference in the country. It’s precisely why analysts think that Indonesia’s digital economy can hit US$130 billion by 2025.

SOURCE

Data: East Ventures Digital Competitiveness Index 2020
Infographics: Christine Toh
Analysis: Terence Lee. Editing: Eileen C. Ang