Indonesia to set up crowdfunding platform for e-commerce startups

Joko Widodo, President of Indonesia | REUTERS/Mike Blake

Indonesia’s ministry of cooperatives and SMEs has announced plans to set up a crowdfunding platform to fund startups as part of its broader e-commerce roadmap introduced earlier this month.

The government will join hands with the University of Indonesia (UI) to build the site.

Ministry spokesperson Braman Setyo said, the government will act as a facilitator connecting investors and users. The platform, which will be free to use, is not intended for generating profits. The various stakeholders including financial services authority (OJK), Bank Indonesia (BI), and the ministry of communications and information technology will work on the regulations for the platform.

“The platform is expected to launch next year. We hope that the crowdfunding site can help minimise costs for those looking for investments,” Setyo told local reporters in Jakarta recently.

While Indonesia has southeast Asia’s highest number of startups, it also faces a big gap in funding. To address this, President Joko ‘Jokowi’ Widodo rolled out the 14th economic reform package including a presidential decree on e-commerce roadmap.

Crowdfunding was one of the six solutions put forward in the roadmap, along with micro credit programmes for app developers, grants for business incubators, universal service obligation (USO) funds for digital-based SMEs, angel investment, and seed capital from VC firms.

Other provisions regulated in the roadmap include taxation, consumer protection, education and human resources, logistics, and cyber security. There are at least 18 initiatives that have to be completed in the next three to six months with 13 more initiatives to be completed within 12 months.

The government is targeting to complete the first and second list by mid-2018 in order to achieve the forecast e-commerce transaction value of $130 billion by 2020. Regarding tax, the government will lower the rate for local investors investing in startups, and ease procedures foe e-commerce ventures with a total turnover of Rp 4.8 billion ($357,000) and below per year.

According to the ministry of communication and information, the value of Indonesia’s e-commerce transactions is forecast to hit $130 billion in 2020. Indonesia is also targeting to nurture 1,000 technopreneurs with a total business valuation of $10 billion by the same year.

Also Read:

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Small e-commerce startups in Indonesia ripe for merger: Andi Boediman, Ideosource

Indonesia’s tech spending rises 8.4% in 2016, startups to grow 6-fold by 2020

Indonesia: BEKRAF, VCs team up to fund creative sectors, DAM expands network

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.