As the largest and fastest-growing digital economy in Southeast Asia, Indonesia is estimated the gross merchandise value of its digital economy that will grow US$100 billion by 2025. The growth expected is beyond the entire Southeast Asia region that has US$240 billion digital era economy growth in total. Also, There are 75 fintech payment startups and more than 150 fintech lending startups, with 2000 technology startups in total in Indonesia.
Despite the COVID-19 pandemic, Indonesia’s digital era economy growth remains strong and has increased. It is increasing 11% to US$44 billion compared to US$40 billion in 2019.
Indonesia’s Rapid Economy Growth: How it can be?
Indonesia’s population is the largest in Southeast Asia. Approximately 273.5 million as of 2020 is the reason for the rapid and exciting growth. The increase of mobile phone and internet penetration rate is along with Indonesia’s per capita income growth. Leveraging on this digital economy growth in Indonesia as the way to innovate to deal with the inefficiencies in Indonesia. Inefficiency elimination allows individuals to communicate, purchase, and sell things and perform financial transactions with the application of digital technology, further driving the already rapidly-growing digital sector.
Starting a Business in Indonesia: the Rising Digital Economy of Indonesia
Two businesses are flourishing in this digital economy of Indonesia, Fintech, and health-tech. Compared to other sectors in the country, the fintech sector has a relatively high adoption rate. Indonesia has a great alternative to traditional banking in terms of flexibility and convenience through this sector.
Boost The Digital Economy Growth: How initiative?
Regulations are not fully matured in this dynamic digital economy in Indonesia yet. Still, the Indonesian government is striving to develop several initiatives to promote the digital economy growth.
In addition, these initiatives include creating clear and simplified licensing requirements for digital startups, setting policies for customer protection, establishing a fintech sandbox, and building a code of conduct through the Asosiasi Fintech Indonesia and Asosiasi Fintech Pendanaan Indonesia.
The Indonesian government issued GR 71/2019, concerning customer protection and data privacy and customer protection on the implementation of electronic systems and transactions to replace GR 82/2012 on the implementation of electronic systems, electronic transactions, electronic agents, electronic certification, domain name management, and reliability certification institutions.
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Lastly, you can read about how to set up a foreign company in Indonesia.
