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Today's Headlines Digital Economy
On 6 July 2023 Indonesia Investments released the June 2023 edition of its monthly report. In the report we present a number of analyses of topics (all related to the economy, politics and social matters) that were relevant in Indonesia in the month of June 2023.
On Thursday (6 April 2023), Indonesia Investments released the March 2023 edition of its monthly report. In this report we offer in-depth analyses of the key economic, political and social matters that impacted on Indonesia in the month of March 2023.
Over the past year, we released two stories on the merger of Gojek and Tokopedia, two Indonesian tech companies that have evolved into huge companies over the past decade (with Gojek having turned into a Decacorn and Tokopedia into a unicorn).
On Thursday (06.01.2022) Indonesia Investments released the December 2021 edition of its monthly report. This report discusses a range of subjects - related to political developments, the economy and social matters - that were important and influential issues in Indonesia in the month of December 2021.
While the digital economy of the Southeast Asian region was already developing at a very fast rate prior to the arrival of the COVID-19 crisis, it was this crisis that would act as a catalyst for even more rapid development of the region’s digital economy.
In recent months most attention went to the merger of Indonesian ‘superapp’ Gojek and e-commerce giant Tokopedia – including their plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). But we should not forget that another Indonesian e-commerce giant (and tech startup unicorn), called Bukalapak, is scheduled to list on the IDX on 6 August 2021.
Although we already discussed the (then-looming) merger between Aplikasi Karya Anak Bangsa (Gojek) and Tokopedia in detail in our January 2021 report, we do feel it is justified to cover this topic once more – albeit slightly more succinct this time – since it is now official (announced on 17 May 2021) that both sides re to merge, thus creating a massive entity (named GoTo) with an impressive and unique ecosystem.
Indonesia does not want to be left behind in terms of developing its digital economic potential. In early March 2021, the Indonesian government inaugurated the "Indonesian-style Silicon Valley" called Nongsa D-Town. This 5,000 m2 area is located on Batam Island, which is positioned very close to Singapore.
Digital banks will soon become a reality for Indonesians. Chief Executive of Banking Supervision of Indonesia's Financial Services Authority (in Indonesian: Otoritas Jasa Keuangan, or OJK) Heru Kristiyana recently confirmed that this supervisory agency is currently drafting regulations for the establishment of digital banks in Indonesia.
Possibly the biggest story in local Indonesian media over the past couple of days (if we exclude coverage of any COVID-19-related matters) is the news that Gojek is in talks (in fact in the final stages, reportedly) to merge with Tokopedia. Based on the input of people familiar with the matter, the two companies have agreed to conduct due diligence on their respective businesses.
Latest Columns Digital Economy
It is something the central government of Indonesia has been planning and weighing for several years now, but the coronavirus (COVID-19) crisis seems to have sped up the efforts. Per 1 July 2020, the Indonesian government imposes a 10 percent value-added tax (VAT) on sales of imported digital products and services.
Indonesia, the world’s 16th-biggest economy, recently joined the “trillion-US dollar club” having a nominal gross domestic product (GDP) of USD $1.01 trillion. Meanwhile, the country’s annual economic growth has been going at a pace of around 5.0 percent over the past couple of years.
It came as a big surprise to us. Only three days before the new and somewhat controversial e-commerce tax regulation would come into effect, Indonesia’s Finance Ministry decided to delay its execution.
It’s not only a question of being digital or not; it’s more about the level ofdigital transformation that you are willing to take.
Indonesia has four unicorns – a term that refers to startup companies that are valued over USD $1 billion – namely: (1) ride-hailing and logistics company Go-Jek, (2) e-commerce operator Tokopedia, (3) e-commerce operator Bukalapak, and (4) airline ticketing and hotel booking services Traveloka.
Indonesia's eCommerce boom leads to rising demand for new logistics goods delivery concepts. This has been a problem for many brand owners and retailers that lack the technology and expertise in a distribution network. At e2eCommerce Indonesia 2018, around 2,000 attendees from eCommerce, retailers and SMEs will gather to seek answers to these problems. Are you a reliable logistics & fulfillment company? Do you have solutions for eCommerce business? Join us and exhibit your services!
The volume of Indonesia’s digital economy will reach about USD $130 billion by 2020, which will make the country among Southeast Asia's leading nations in terms of digital development. This was stated by local authorities just a week ago. New technologies, blockchain and transformation of the IT-sector will play key roles in this process. With this context in mind, the Blockchain INDO conference in Jakarta, to be held on 11-12 May 2018 in the Kempinski Hotel in Central Jakarta, becomes even more relevant.
Chinese e-commerce giant Alibaba founder Jack Ma having been appointed as special advisor to the Indonesian government for the development of Indonesia's e-commerce sector has led to some concern whether it puts China's richest man in a position of conflict of interest. Ma's Alibaba Group owns big stakes in Singapore-based e-commerce giant Lazada (which operates across Southeast Asia) and Indonesian online shopping facilitator Tokopedia.
NetApp Indonesia, the local unit of the American multinational storage and data management company, predicts three main information technology (IT) trends in Indonesia in 2017: (1) data becoming the "new currency", (2) new platform models taking over, and (3) cloud computing becoming a key source of corporate growth. Ana Sopia, Country Manager NetApp Indonesia, explained that numerous companies, all over the world, are currently experiencing digital transformation challenges.
The number of smartphone users in Indonesia is rising rapidly in line with growing per capita GDP and widening Internet penetration across the Archipelago. Based on data from research institute eMarketer there were 69.4 million smartphone users in Indonesia at the end of 2016. Moreover, the number of Indonesian smartphone users is expected to grow to 103 million by 2018, which would make Indonesia the fourth-largest smartphone market worldwide after China, India and the United States.
