Communications Minister Invites Startups to Work on Edutech and Healthtech

Legian, InfoPublik – Indonesian Communications and Information Technology Minister Rudiantara invites global startups to relocate its business base to Indonesia. With its high population and internet penetration, Indonesia has a big potential to develop digital economy.

The Minister added that startups in education (edutech) and health (healthtech) sectors have big potential. Digital startups can work on the two sectors because the Government disburses large fund for them.

Moreover, to be a unicorn startup, according to Rudiantara, the key is education. “Twenty percent of the State Budget must be allocated to this sector. This year, the budget for education is around Rp400 trillion,” he said in The NextIcorn International Convention Digital Paradise Weekend in Bali (13/10). Based on the figure, if the income is 2 percent, it means the startup gets Rp10 trillion.

Meanwhile, the Government is obliged to allocate 5 percent of the State Budget to health sector. With a budget amounting to Rp100 trillion, if the income is 2 percent, the value is equivalent to Rp2 trillion. “It’s a big value,” the Minister explained.

NextIcorn is a medium for the Government and local unicorn startups, namely Bukalapak, Tokopedia, Gojek, and Traveloka, to connect Indonesian startups that need financing from global or national venture capitals. There are 13 countries and 88 venture capitals joining the NextIcorn.

The Minister admitted that the Government will lessen the function as regulator and more of facilitator and accelerator. “Less of a regulator, more of a facilitator, even more of an accelerator,” he said. With Government’s support, Bali will be a reference of digital economy development besides Beijing (China), Bangalore (India), and Silicon Valley (US).

In the same occasion, the Chief Strategy Office (CSO) of Bukalapak, Teddy Oetomo, said that startups must be innovative with a perspective to solve problems. “Don’t just focus on being a unicorn,” he said, because with a perspective of problem solving, the resulted products will be beneficial. (Uji Agung Santoso/Gusti Andry/Translator: Mia)