Credit: Universitas Gadjah Mada

Credit: Universitas Gadjah Mada

Indonesian government encourages growth of digital industry economy to minimise economic gap

An announcement made by the Universitas Gadjah Mada (UGM) highlighted how the Indonesian Government is strengthening the digital industry economy by encouraging the youth to go into digital business.

Indonesian Government is currently strengthening the digital industry economy by encouraging the young people to go into digital business and one of the ways is by the 1,000 Start-up Business movement that is expected to reduce economic gap and gini ratio index. With the theme, “Networking of 1,000 Digital Start-ups,” the event took place in Yogyakarta on19 May 2018.

Section Head of Technology and Informatics Infrastructure in the Ministry of Communication and Information Technology, Mr Sonny Hendra Sudaryana, ST., M.MT, said the new start-ups are expected to create equality, financial inclusion, and digitalisation.

Efforts that can raise the prosperity of the impoverished people are needed to lessen the gap bet ween the rich and the poor. This is because the wide gap between the two classes resulted in political and economic unstable conditions and social conflicts.

“We hope the new start-ups will help reduce the gap among society, especially to prevent social conflicts that have often emerged,” he said.

He cited Go-Jek as an example of a successful digital technology start-up, which achieved economic sharing and manpower digitalisation.

“Go-Jek has helped reduced the unemployment level and increased the average income of drivers and SMEs,” he said.

He also mentioned Tokopedia and other online SMES that achieved what Go-Jek has.

“Now, together, we can resolve the problem of how to increase the income of SMEs through online sales,” he encouraged the people at the event.

Mr Fachry Bafadal, co-founder of a seamless chat commerce solution, inspired the student participants who attended the seminar not to give up easily. He said, “Never blame the situation because it can provide us lessons in our journey.”

He suggested that start-up founders should avoid using their egos when developing a product and platform. Instead, create innovations according to the demand of the market. He explained, ”Our ego can destroy our products especially when we do not listen to the market. Celebrate a failure instead.”

Mr Sebastian Alex Dharmawangsa, founder of a horticulturist start-up, said the initial step in digital business development is strengthening cooperation between team members. His start-up was established after the UGM Innovative Academy.

He said that as high as 65% of start-ups have stopped growing because of internal problems. The team members were unaware of the delineation of roles and duties of each member.

“It’s important to know the character and job description of each member in order to create an effective team,” he said.

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