Home to more than 260 million people with the average age of 27 years old, Indonesia stands out as an attractive market to both investors and businesses for its size and growth potential. Currently, all eyes are on the nation’s e-market which is projected to value at US$130 billion by 2020, behind China and India.
While attention falls on the highly coveted e-commerce pie, here are four other rising tech verticals – which you probably are unaware of – that are also propelling the Indonesian startup ecosystem onto the global stage.
The widespread use of digital technology among its tech savvy citizens has led to the growth of fintech services in Indonesia. However, with over 120 million adults (73 percent) still unbanked, the fintech market penetration remains low, and this underlines tremendous opportunities for further growth in the future.
With government efforts to strengthen consumer confidence and attract new players to the industry, Indonesia is expected to emerge as the biggest digital economic giant in the region with potential transactions hitting US$128.7 billion by 2020.
2. On-demand marketplace
The on-demand economy has grown to become more prevalent – branching out across various industries from ride-hailing to domestic services, and even healthcare. In a country whose population is becoming increasingly urbanized, connected, and technology savvy, this industry presents enticing business opportunities for startups and investors alike.
Following the huge successes of on-demand giants such as Go-Jek, Grab, and Uber, the outlook seems promising amidst the scaling challenges it faces. According to many market watchers, several on-demand startups could be en route to becoming unicorns.
3. Cloud Computing
The archipelago is a huge potential market for cloud computing. More SMEs in Indonesia are quickly embracing cloud technology for their core business functions to compete with larger corporations. During the past five years, the cloud computing market has grown at a compounded annual rate of 48 percent – much greater than the global annual growth rate.
Especially with the recent implementation of Government Regulation No. 82, which mandates Indonesian businesses conducting electronic transactions to store personal data in data centres in the country, cloud adoption is poised for rapid growth over the next few years.
4. Software-as-a-Service (SaaS)
With almost 360 million SMEs in the country, the Indonesian SaaS market is still considered a blue ocean with a vast market. As cloud computing continues to show high rates of growth, SaaS, which accounts for 85 percent of the cloud market, is expected to remain dominant due to the greater ease of adoption. However, as SaaS is still relatively new in the country, the focus moving forward is to educate customers, raise awareness of its benefits, and eventually convert into a user.
Stay ahead of the curve at #tiajkt2017
If you’d like to be at the forefront of the dynamic startup ecosystem, find out more about these exciting verticals, or better yet, meet the brains behind these next wave of startups, the best way to all these and more is at Tech in Asia Jakarta 2017 happening this November 1 – 2!
Whether you’re there to meet potential customers and investors, network with fellow tech junkies or rub shoulders with A-list industry leaders, you’ll leave this event armoured with weapons to take your business to the next level.
Are you up for it? From now till August 25, 11:59PM (GMT +7), you can get 20 percent off your conference pass with the promo code ‘tiajkt20’. See you there!
This post Ecommerce isn’t the only big thing in Indonesia. Here are 4 others. appeared first on Tech in Asia.