Jakarta, March 29 (Antara) - The people's life in the future will lie in the digital world so that those who are still stuck in the conventional system will be left behind.
This prompts people to look forward to the development of digital technology, boosting investment in the digital sector and providing momentum to grow.
Hence, the amount of investment in the digital sector in the country is expected to increase significantly this year, in line with the improvement of the ease of doing business.
Foreign investment coming into Indonesia's digital sector in 2017 reached US$4.7 billion. This is evidenced by the existence of four startup companies with the unicorn status in Southeast Asia based in Indonesia.
The term unicorn is given to start-up companies with valuations of $1 billion.
Previously, a digital technology company from Malaysia, Toga Limited expressed interest to invest in the startup company managed by Indonesia Stock Exchange (IDX) Incubator with budgeted funds of $10-15 million.
"There are about five or more companies that are interesting enough, but about one to two companies that we seek," said Group General Manager Toga Limited, Steve Seekuy Tan in Jakarta, Thursday (March 15).
Steve said that his company had a meeting with startup companies under Indonesian Stock Exchange (IDX) Incubator in digital finance. He did not rule out the possibility that one of the companies will fall into the category of unicorn in the future.
In the near future, he said it would sign a memorandum of understanding (MoU) with the Indonesia Stock Exchange (IDX). The cooperation plan is aimed at developing digital communication media system and promotion of IDX gallery investment activities throughout Indonesia.
The amount of foreign investment in the digital sector in Indonesia is expected to increase in 2018, in line with the upgrading of its rating on the ease of doing business in the global level.
Researcher Novani Karina Saputri of the Center for Indonesian Policy Studies (CIPS) said in Jakarta on Tuesday the process of simplifying licenses and regulations at the central and regional levels should continue to support the achievement.
"Clear and effective licenses and regulations will encourage many investors to invest in Indonesia," said Saputri.
She also pointed out, another thing that can boost foreign investment in the digital sector is investment scheme with tax holiday.
The scheme is designed by the minister of finance in the form of incentives for industries engaged in the information technology sector or companies that have a minimum value of Rp500 billion.
According to Saputri, the company will also get a tax relaxation in the form of income tax (PPh) deduction facility amounting to between 10 and 100 percent within 5 to 15 years. It can be extended to 20 years.
"This enforcement will enhance the growth of information technology industry," she said.
In addition, she said, this policy will also encourage the entry of investment, increase economic growth, and absorb more workers.
Therefore, the people across the country must realize the importance of mastering digital technology as current economic activity is globally dominated by the digital sector in various aspects.
"The mastery of digital technology must be developed at all levels of society, as business platform tends to change into the digital sector," she said. Moreover, she reminded, the potential of online transactions in Indonesia is currently quite good with a growth rate in 2016 reaching 22 percent.
This is a higher growth rate compared to China and India. This is the potential and opportunity for digital transformation in various fields that can make Indonesia able to compete with neighboring countries.
Earlier, Finance Minister Sri Mulyani Indrawati reminded the importance of policy formulation to anticipate the rapidly growing digital economy movement.
"We need to strengthen governance and policy formulation as a strategy to accommodate the digital economy," Sri Mulyani said in a discussion in Jakarta last month.
Sri Mulyani said the current economic environment is sufficient to support the increase in digital activity that begins to affect everyday activities so it needs to be facilitated in order to grow rapidly and make a significant contribution to the economy as a whole.
President Joko Widodo has promoted the transformation of the digital economy in Indonesia during a meeting with New Zealand CEOs at the Majestic Center, Wellington, New Zealand, Monday (March 19).
The President conveyed, Indonesia's economy is in the midst of transforming after a long time being dependent on the export of raw commodities. Now the Indonesian economy is following the trend, along with the rise of the digital economy and the increasing number of middle-class people.
The Government of Indonesia has implemented a National Broadband Plan to expand Indonesian internet penetration which now covers 100 million people. The $20 billion program has been launched since 2014.
In addition, the Government is implementing a program of providing access to capital as the government wants digital economic investment to grow 10-fold to $130 billion and support the creation of 1,000 new technopreneurs by 2020.
This program is carried out with international cooperation by inviting more foreign investors to inject capital for digital-based businesses in Indonesia. The program is expected to expand opportunities for those who have talent in the creative industry sector through cooperation with universities.***3*** (A014/H-YH)(T.A014/A/BESSR/A/Yosep) 29-03-2018 00:16: |
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