Jakarta, CNN Indonesia —
start-up (startup) start booming and mushroomed in Indonesia in 2015. The Ministry of Communication and Information (Kemenkominfo) noted that in that year at least 62 national startups from various industries received funding from domestic and foreign investors.
This has boosted the nation’s confidence in the technology sector. Moreover, Indonesia is one of the 8 developing countries that are considered to have the potential to continue to advance.
If you consider internet penetration and smartphones or the hours spent by the people of the country to consume technology, Indonesia cannot be denied as one of the hidden potentials of development startup.
In the same year, the government also expressed its support by targeting to create 1,000 technopreneurs within the next five years and making digital economic valuation a tool to drive GDP up to 22 percent by 2020.
Business models and startup ideas vary, some imitate those that have been proven successful in the market, some build ideas from problems around them.
There are three sectors that are the most preferred choice for startups in Indonesia, namely the trade economy or e-commerce, education, and games.
Until 2021, President Joko Widodo (Jokowi) claims that Indonesia has 2,229 startups. According to him, this number is the fifth largest in the world.
“Currently, Indonesia has 2,229 startup companies, the fifth largest in the world,” said Jokowi when delivering a speech at the ASEAN Business and Investment Summit, some time ago.
Of the number of startups, one company has a decacorn status, aka has a valuation of US $ 10 billion. Meanwhile, six of these companies are unicorns or have a valuation of US$1 billion.
However, the belief in the development of the startup business is hampered. This is because the economy, which has been disrupted by the pandemic and geopolitical tensions between Russia and Ukraine, has reduced the performance of several startups, leading to termination of employment (PHK) for their employees.
It was recorded that throughout 2022 there were several startups that began to fall by doing layoffs. One of them is Zenius, this educational startup has cut more than 200 employees. Management admits that the company’s performance has declined amid the economic turmoil.
“In order to adapt to the dynamic macroeconomic conditions that affect the industry, Zenius is consolidating and synergizing business processes to ensure sustainability,” said management in an official statement, Tuesday (24/5).
Then, LinkAja, which is a state-owned digital financial service, also laid off a number of employees. Head of Corporate Secretary Group LinkAja Reka Sadewo said this was done in the context of reorganizing human resources (HR).
According to Reka, there will be several significant changes that will be made by this subsidiary of Telkom, especially with regard to the company’s business focus and objectives. This will affect several aspects of the company’s operations, one of which is the reorganization of HR.
“Of course, this is crucial to do, to ensure that the company can grow optimally, supported by an efficient HR pillar and in accordance with the company’s focus and targets going forward,” said Reka.
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