Indonesia is undergoing something of a technological and digital revolution. Brought on in the last 18 months but simmering away for many years before, it could be the saving grace for the country’s volatile economy. But what’s driving it? More specifically, who is driving it?
How Indonesia’s Youth Are Getting Tech-savvy
It’s fair to say that Indonesia has struggled over the years regarding its economy and GDP. Portions of the country have experienced poverty, further exacerbated by natural disasters such as earthquakes and tsunamis. But GenX and Millennial Indonesians are looking to make a change. There is a whole generation of technologically literate individuals brimming with ideas and motivation.
Furthermore, many are taking the situation into their own hands by increasing their own financial literacy and involving themselves in forex trading, stock exchanges, and the mechanics of national and international business. If these individuals aspire to go global with their tech-startup plans, it’s important for them to truly understand how international business works. Thankfully, they are drawing on many great online resources, such as demo accounts and expert support, to help them amass as much knowledge as possible.
Indonesia’s Biggest Tech Deal
Earlier this year, two young Indonesians, Kevin Aluwi and William Tanuwijaya, made national history. They founded GoTo Group, which was recently crowned as the country’s most valuable technology company after becoming a part of a huge deal. The company contributes a whopping 2% to the country’s GDP and includes an app and various business lines. But the founders aren’t happy- they want to contribute 10% to the economy in the coming years.
The company was formed in May 2021 due to a merger between two other companies Tokopedia and Gojek. The former is an eCommerce site that brings small merchants closer to buyers, while Gojek is a motorbike taxi application. Over the years, both companies diversified into digital payments, on-demand services, delivery services, and more. The deal which brought them together was worth an impressive $18 billion.
Tanuwijaya told CNBC that the result is like combining “Amazon, DoorDash, Uber, PayPal, and Stripe,” adding that they decided they were better working together instead of competing.
GoTo now has more than 100 million active users, over 11 million merchants and businesses, and 2 million drivers. Furthermore, they’ve announced they will be going public by the end of 2021, with an estimated public market valuation target of $35 billion to $40 billion.
Young People and the Future of Indonesian Tech
Indonesia’s digital economy is set to surpass $124 billion over the next four years. This signifies a huge chunk of the country’s $1 trillion GDP. The eCommerce and services market is worth over $309 billion in the region and doesn’t show any signs of slowing down.
Over the next few years, huge economic growth is forecast, shifting towards a more consumer-driven society. The fourth-largest country in the world, Indonesia is at the apex of it all, and its youth are propelling it forward.
The COVID-19 pandemic was a big catalyst for the digital sector. As restrictions shut down many businesses and severely restricted movement, people started to look to the online world. It forced many businesses to think quickly about how they would adapt, forcing them to embrace technology and innovation. As a result, many tech businesses have found themselves doing well, particularly those that have created solutions tailored to the world in the grips of a pandemic.
With over half of the population aged below 30, it’s obvious that the youth will have a big part to play. Almost 200 million people are online, and the opportunities for tech start-ups are abundant. Businesses need to learn to cater to these businesses, and the ones that will succeed will be those that have adapted well to the dawn of the digital age.
