It’s Time to Let Foreign Investments Flooding Indonesian Tech Industry
Avi Tejo Bhaskoro - 15 November 2014
According to a survey by the Price Waterhouse Coopers (PwC), and combined with the result of the latest APEC Summit in Beijing, China, as well, Indonesia is regarded as the most popular destination for foreign investment in ASEAN, and even in APAC. Is this a good sign for Indonesian IT scene?
Basically, Indonesian technology industry can be divided into three main portions: the manufacturing industry, telecommunication, and startup. Those three have actually been the target of numerous global investors for a long time. Just take a look at a number of foreign players who have already ‘played’ in local telcos, network infrastructures, or tech manufacturers. There are tons of reasons supporting this situation, and the low labor cost possessed by Indonesia is not an exception.
The fact that global investments flood Indonesia strengthens the country’s position as one of most promising gold mines for business worldwide. In fact, Indonesia has also started becoming much friendlier to creative entrepreneurs.
As the survey indicated, 46% of 600 global giants’ CEOs believe that APAC will definitely have a bright future, and 67% of the respondents have even planned to plant their money in APEC countries this coming year.
The plans were divided in 21 of APEC’s member countries, in which Indonesia gets inducted into the big three most favorite destinations, after China and the U.S. A good sign for our tech industry? Of course!
While the detailed information about foreign investors’ plan on Indonesian tech industry has yet been prevailed, the spirit of such global investments have been the main topic these past few years. Just take a look at the story of Foxconntech manufacturer’s investment, which is currently entering a happy ending. Then, there are plans from two global investors, Taiwan and the U.S, which declare that they have enough money to play in Indonesia. The crazy thing is, if it goes according to the plan, U.S total investment in Indonesia may reach US$ 61 billion by the next five years!
That being said, the milestones set by Indonesian local players, like the one that Tokopedia made, even assure much more global players to put their money in Indonesia, as it indicates that Indonesian startup industry has now been ready to manage hundred millions dollars investments.
What should we do? Well, considering that investment is one of the most fundamental cores of business, we certainly need to pursue it seriously by developing distinctive products and starting to think and act global. This is extremely crucial to reserve our position as the host of our own nation.