Indonesia's SOEs asked to aid home-grown start-ups hinh anh 1Indonesian President Joko Joko Widodo. (Photo: VNA)
Jakarta (VNA) – Indonesian President Joko Widodo has asked state-owned enterprises (SOEs) along with their venture-capital arms to be more involved in aiding home-grown start-ups, hoping it can boost the country’s digital economic resilience amid the highly competitive tech-firm market.

Many start-ups had been facing a high probability of failure, as around 80 – 90% of them went bust in their early stages, he told a recent event held by the SOEs Ministry.

He outlined two major reasons behind start-ups’ failures were inability to respond to the market needs as well as running out of funds before they could make significant growth. 

He hoped that if these problems were encountered in Indonesia, then they could be addressed with the help of SOEs. This will be the task of venture capitals and SOEs, so that Indonesia can connect its large ecosystems with each other and would not fail to enter the market, he stated.

The "e-Conomy SEA 2021" report released by technology-company Google, Singaporean state-owned investment firm Temasek Holdings and business-consultant Bain & Co estimate that Indonesia’s internet economy will reach 70 billion USD in 2021, marking a 49% growth from 47 billion USD in 2020.

The report also projects that the figure may double to 146 billion USD in the next four years, signaling Indonesia’s strong presence in the ASEAN region, as it will come on top of the digital-economy size compared to its neighbouring countries.

SOEs Minister Erick Thohir said in the same event that several SOEs have already begun forming their own venture capitals, implying they were up to the tasks to help build the country’s own digital ecosystem. State-owned lenders Mandiri and BRI, he said, had established Mandiri Capital and BRI Ventures respectively, while the Indonesian central bank (BNI) was expected to follow in their footsteps./.