UNAIR NEWS – The development of start-ups and digital economy in the world is starting to gain interest, including in Indonesia. President Joko Widodo stated that the development of Indonesia’s digital economy is the fastest in Southeast Asia.
In this regard, management lecturer at the Faculty of Economics and Business, UNAIR, Dr. Zaenal Fanani SE., MSA. Ak. responded regarding the potential and challenges of start-up development in Indonesia.
According to Zaenal, etymologically a start-up is a company that has not been active for a long time. Start-ups may include new types of work and there is a change in business evolution from manual to digital, so they can adapt to developments in information technology.
“The key word for start-ups is related to technology, networks and the internet which are currently trending,” he explained.
The Director of Airlangga Executive Education Center (AEEC) said there were several factors that led to the development of start-ups in Indonesia to become the fastest in Southeast Asia. First, the condition of the Covid-19 pandemic supported by the rapid development of technology has caused the development of start-ups to accelerate.
“Second, it is also supported by existing infrastructure in Indonesia. Based on data, more than 50 percent of Indonesia’s population is digital literate youth, “he added.
Furthermore, start-up developers usually come from young people who are also supported by the use of smartphones. This causes the development of e-commerce in Indonesia to experience many developments.
“Start-up business services are also very satisfying because the managers are young people who use technology more effectively and efficiently,” he explained.
MSMEs support the economy
Based on data, he continued, in the next 2025 in Asia there will be at least 50 percent contribution from start-ups . The opportunity for a start-up business in the future is huge. In fact, it is predicted that in 2045, the Southeast Asian economic market will have around 240 billion US dollars for start-ups .
Furthermore, Zaenal revealed that Micro, Small and Medium Enterprises (MSMEs) as the main support for the economy in Indonesia must collaborate and make good use of start-up developments . According to him, the existing MSMEs are digital technology-based MSMEs.
“If MSMEs only use manual methods, they will definitely lose. The UMKMs that will be accessed are those that can make good use of the momentum in this digital era, moving together towards the development of digital technology, “he said.
Not only collaboration, continued Zaenal, MSMEs must also take advantage of current digital facilities. MSMEs must be able to take advantage of this technology in building communication and sales networks. With mastery of knowledge about this network, the MSMEs can become leaders .
The government must also provide support for start-ups by providing special facilities because start-up developers are usually beginners. When everyone owns a business, the country’s income will increase.
“When people’s income increases, taxes will also increase so that development will also increase,” he concluded.
UNAIR as the best university in Indonesia is committed to encouraging the academic community to contribute to the wider community. (*)
Author: Sandi Prabowo
Editor: Binti Q. Masruroh
