21 Nov

It’s Time for Indonesian Technology Industry Flooded by Foreign Investment

by Veritrans Indonesia

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Hello everyone! Any plans for tonight? Hope you all have a nice friday night. Today, we will discuss about foreign investment in indonesian technology industries.

Based on recent survey that was released By Pricewatehouse Coopers (PwC) and was made after APEC Summit in Beijing, China, Indonesia was successfully considered as the most popular destination for foreign investment in ASEAN and even become main destination among Asia Pacific countries. The thing is: would this be good for Indonesian technology industries?

Indonesian technology industries could be reviewed from 3 aspects, these are manufacturing, telecommunication and startup industries which have become the center of interest in global business. These 3 industries actually have been targeted by foreign investors, this happens due to the assumption that the labor cost in Indonesia is relatively low.

Furthermore, the entrance of foreign investment in Indonesia could produce positive sentiment that investment climate and economic stability in Indonesia is promising, followed by Indonesian creative economy which is proven by the increase in number of local startup.

According to PwC survey done to 600 CEO from all companies globally, about 46% of correspondents have optimistic predictions toward countries in Asia Pacific region and 67% instead have plan to increase their investment in APEC region in 1 year time.
That investment plan was planned to be divided in 21 member countries of APEC, where Indonesia become the third most popular investment destination after China and United States. This indeed a good signal for Indonesian technology industries.

Although the detail of foreign investment plan for Indonesian technology industries is still not clear, several fluctuation in the industries could already be felt such as the giant Foxconn who has started investing, followed by investment plan from 2 capitalist countries, Taiwan and United States who have declared that they have already reserved budget to invest in Indonesian market, in which one of the master investment will be allocated to technology sectors. United States also predicted that investment from them will reach US$ 61 billion in 5 years.

Besides that, achievement from local startup local such as Tokopedia has successfully dismissed the hesitation that Indonesian startup technology industries cannot handle million dollars investment value. Indonesian e-commerce industries is also regarded as having huge potential market.

Undeniably, investment is extremely important for the survival of startup, therefore besides having product that is unique which could attract attention from investors, startup players should stop thinking about how their products go global. This is a concern since foreign investor does not spend their money in order to be powerful in their own countries, but instead, they want to be powerful in other countries. So for startup, start to think about how to be king in our own countries.