President Jokowi Said That Only A Few Startups Focused On Food Affairs: Here There Is An Opportunities

President Joko Widodo planted coconut tiles with farmers in Samin Hamlet, Sanggang Village, Sukoharjo (Photo: BPMI Setpres/Rusman)

JAKARTA - President Joko Widodo (Jokowi) has encouraged startups to dare to seize opportunities in the food sector which he views as still wide open because of the food crisis caused by the Russian military aggression to Ukraine.

The reason is that only four percent are involved in the agricultural sector, the President said when opening BUMN Startup Day at ICE BSD City, Tangerang Regency, Banten, Monday, September 26.

"Makan Masa krisis pangan, urusan pangan ke depan ini akan menjadi masalah besar yang harus di solveng oleh teknologi dan itu adalah kesempatan, peluang, opportunity, dan agrikultur hanya empat persen ( dari startup Indonesia -ed)," kata Presiden dalam pembukaan yang disiaran kanal YouTube resmi Sekretariat Presiden.

The four percent portion is still far behind compared to the fintech sector which dominates Indonesia's startup population with 23 percent or retail by 14 percent.

The President explained that in the food sector there are at least three aspects that Indonesian start-up businesses can target, namely production, distribution, and marketing.

"Here there is an opportunity for all of them. The production issues are there, distribution matters are there, market affairs have all the opportunities," he said.

Jokowi also reminded start-up business actors that the food sector is not only related to rice as a commodity for the northern staple food of the Indonesian people.

For the staple food commodity itself, the President gave an example of sorghum, porang, cassava (singkong), and sago. Jokowi also said that the same applies to vegetables and fishery foods.

"So this is a big opportunity and the target of consumers from farmers in the fields, fishermen in the ocean, to enter the kitchen of housewives. The opportunity is very big," he said.

The President also reminded that Indonesia's digital economy potential, which in 2020 amounted to IDR 632 trillion, could grow eight times to around IDR 4,531 trillion in 2030.

Jokowi continues to invite start-up business actors to start their business by looking at the existing market needs, considering that 80-90 percent of startups failed when they were still in the pioneering stage with 42 percent of them due to not seeing the existing market needs.

On the same occasion, SOE Minister Erick Thohir reported that SOE Startup Day was held by presenting 150 excavators, 250 startups in 12 clusters in BUMN, 22 state-owned companies seeking to see the potential for business matching, five assistant venture capital, and at least 5,000 invited endors.

"There are five SOE Startup Day businesses, pitching investors, rapid mentoring startups, conferences, and of course exhibitions. Please support the President and the government so that this can be a big wave for Indonesia's digital economy progress as one of future economic growth," said Erick.