Deputy Minister Of Communication And Information Reminds Startups To Have Strong Foundations To Face Tech Winter

Deputy Minister of Communication and Information Nezar Patria at the opening of HUB.ID Accelerator Partner Day x Nex-BE Fest 2023 in Nusa Dua, Badung, Bali, Wednesday (13/9/2023) (ANTARA/HO-Kemenkominfo)

DENPASAR - Deputy Minister of Communication and Information, Nezar Patria, reminded startup companies must have a strong foundation amidst the tech winter phenomenon that changes the business strategy map of startups in Indonesia.

The tech winger period refers to the decline in technology and startups due to the decline in investor performance and interest in funding and this phenomenon is being experienced by many startups in Indonesia.

According to him, in an effort to achieve efficient operations and focus on profits, startups must carry out a number of strategic steps.

"First, startups must continue to innovate to produce products that achieve product-market-fit," said Nezar at the opening of the HUB.ID Accelerator Partner Day x Nex-BE Fest 2023 in Nusa Dua, Badung, Bali, Wednesday, September 13.

Nezar assessed that startups must continue to innovate in a sustainable manner, in order to produce products that are able to reach the level of suitability with the market.

Furthermore, the right products must also be supported by a business model that is not only profitable but can also thrive on a large scale.

In addition, Nezar conveyed the importance of having a strong team in facing startup business challenges. Absorbing the best digital talent and improving team performance is the next step startups must take to achieve success.

Finally, Nezar reminded that building a strong network with strategic partners is no less important. Collaboration with parties that can support startup growth is a strategic step in dealing with changes to business maps in the tech winter era.

Nezar stated that Indonesia is the country with the largest number of startups in Southeast Asia, and the sixth most in the world in 2023.

With this achievement, he said, Indonesia should strengthen efforts to improve the quality of startups.

The Deputy Minister of Communication and Information also encouraged startup actors to be able to develop innovations in various aspects, including funding.

According to him, the diversity of innovation will promise the sustainability of business growth opportunities for the startup industry.

"If previous funding trends generally sourced from funding by venture capital, currently other forms of funding are projected to emerge, such as through crowdfunding, angel investors, incubators, and funding focus based on social and environmental impacts," he said.

Through HUB.ID Accelerator Partner Day x Nex-BE Fest 2023, the Ministry of Communication and Information and the Ministry of SOEs facilitated meetings with government partners and investors. The implementation of the forum is targeted to accelerate the development of the digital startup ecosystem.

Citing Indosat & Twimbit data in 2023, the Deputy Minister of Communication and Information shows that Indonesia's digital economy is projected to reach 220 billion US dollars to 360 billion US dollars (around Rp3.4 quadrillion to Rp5.5 quadrillion) in 2030.

It is even projected that the digital economy will contribute 14 percent of Indonesia's total gross domestic product (GDP) in 2027.

"Currently in Indonesia, the digital economy, including those driven by startups, is still relevant and has great potential for the nation's economy," he concluded.