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Silicon Valley tech companies
are always looking to
expand operations by going global. These types of
expansions are not only profitable for the geographic
regions, but also for consumers and the economy as
a whole - and currently, Indonesia is one of the most
vital markets for all consumer tech platforms.
ButWhy?
1. Economic Growth is a Top Priority
Indonesia currently makes up about 46
percent of the ASEAN population, and is
a primary contributor to the economy. In
fact, according to a report, the Indonesian
economy is expected to double its size from
2028 to 2034. Tech companies seeking
to jump in now can reap the benefits of a
profitable and growing economy that is
perfect for social and content platforms to
target.
2. Big Data and Mobile Use is on the Rise
Research shows that a very large majority
of Indonesian businesses and markets are
already on mobile and even own multiple
devices. The use of the PC was almost non-
existent as many users went straight to
having mobile phones. Indonesians are more
adept in using mobile devices even compared
to a lot of Americans.
An analysis by ComScore revealed the
following:
Mobile devices account for 91% of all digital
minutes in Indonesia.
Mobile’s dominant share of time is driven
primarily by apps, which account for 90%
of all mobile minutes, and 82% of digital
minutes as a whole.
3. Indonesia’s Population Craves Socialization
Silicon Valley tech companies can find
increasing success when launching startups
in Indonesia because the population is ideal
for social and content platforms. One primary
example is Path. Path became big only in
4 Reasons Why Indonesia
is a Vital Market for Silicon
Valley Tech Companies
Indonesia, and its acquisition and biggest
investor in Series C was an Indonesian
conglomerate company. In addition, the
startup economy is among the most well-
funded in Southeast Asia. Companies such
as Go-Jek and Tokopedia are reaping the
benefits of this funding. GoJek, specifically,
has experienced success in navigating local
regulatory environments worldwide because
of strong local connections in Indonesia.
4. Limited Government Intervention is
Appealing
The red tape many Silicon Valley tech
companies face causes challenges both in
operations and funding. Unlike countries
such as China, Indonesia does not censor
messaging apps. As a result, tech companies
are often more comfortable utilizing
Indonesia as a test market. It’s no secret
that Facebook has maximized its potential
using Indonesia as a testing market, and
with limited government intervention,
Silicon Valley Tech Companies can do the
same.
the Challenges &the needto go gloBal
For Silicon Valley Tech Companies to be successful,
though, the Indonesian governments needs to
intervene less and less. For one, we should not be
banning any consumer apps. We saw this firsthand
with the temporary Telegram ban. It was a mistake
and could even deter global tech platforms from
investing resources and growth into the country.
Bans to platforms such as TikTok will inevitably
create long-lasting negative consequences for the
Indonesian government, consumers and the overall
economy.
More importantly, Indonesia is lacking
internationally-recognizable consumer tech brands
because CEOs and tech companies are not thinking
global. Catering to a global audience, expanding
operations and testing to Indonesia is doable and a
smart business choice.
By Billy sutanto