Launching Startup Day, SOE Minister: SOEs Can't Be Dinosaurs

JAKARTA - SOE Minister Erick Thohir launched BUMN Startup Day 2022 to encourage young Indonesian creators to become new job creators.

"Indonesia's digital economy is expected to grow to IDR 4,818 trillion in 2030. This is a big market and must be utilized," said SOE Minister Erick Thohir at the Launching of BUMN Startup Day 2022 which took place at the Ministry of SOEs Building, Tuesday, August 23.

This figure makes Indonesia the largest contributor to Southeast Asia's digital economy. Currently, Indonesia ranks fifth with the largest number of startup companies in the world by scoring 2,346 startups.

Erick added that the digital economy has proven to be one of the pillars of national economic resilience in the midst of an economic slowdown due to the Covid-19 pandemic. It is in this digital economy landscape that startups play an important role, starting from providing digital solutions for daily needs, creating jobs, and encouraging the achievement and competitiveness of Indonesian technology.

With the demographic bonus that Indonesia is currently facing, Gen Z and Gen A will play an important role in changing the country. Indonesia's middle economic class is estimated to grow to more than 145 million people.

“The question is, where do we want to be, are we players or spectators? Or what we often see commentators," said Erick.

According to him, this economic potential needs to be addressed properly by encouraging cross-sectoral cooperation. Therefore, SOE Minister Erick Thohir continues to encourage the transformation of SOE business, especially through digitalization, which is a must.

"I always emphasize that SOEs cannot become dinosaurs," he said.

To that end, several strategic steps have been taken, such as strengthening Indonesia's infrastructure development with cloud data, 5G networks and others which are expected to become aggregators for Indonesian local products to create an independent, independent and sovereign state.

"That's why I hope we collaborate. Previously, we had pushed for the Red and White Fund, none other than because we wanted an intervention that we must support the digital economy,” he explained.

Erick encourages startups that develop are those founded by Indonesians, operating in Indonesia, paying taxes in Indonesia and creating jobs for the people of Indonesia.

"No less important, when it becomes big, it will also go public in Indonesia," he said.

For this reason, SOEs have made a strategic decision to enter the startup ecosystem by forming a subsidiary of SOEs engaged in venture capital. This is none other than because SOEs recognize startups as important actors in the future economy.

BUMN Startup Day 2022 will be held at the Jakarta Convention Center, Senayan on 27-28 September 2022. This activity is divided into two major segments, namely education and business opportunities. This two-day event is intended for startups that have entered the early and growth phases because in this phase startups need support, not only investment, but also managerial ability to maintain the momentum created from previous growth phases.

“We have venture capital, there are five now that have invested in 136 startups. Because our ecosystem must be better, “concluded Erick.