On October 14, Indonesian President Joko Widodo, also known as Jokowi, launched the operational start of the Palapa Ring project. The project, which was jumpstarted over a decade ago, on July 5, 2007, mainly comprised of the construction of a 36,000km long fiber optic cable network that would span the entire archipelago, which would in turn improve Internet access to the nation’s most remote regions. The launching on October celebrated the integration of a newly built network located in the eastern part of Indonesia with the country’s existing network. The newly established 3,850km submarine and a 600km land fiber optic network has been connected to 15 landing points located in 21 cities or regencies across the country, according to the Indonesian Ministry of Telecommunication and Information. The operational launch of Palapa Ring marks another significant achievement under the Jokowi administration. Having been delayed several times since the project’s inception due to problems with its financing, the launch should at least ensure that Indonesia would be able to keep up with its Southeast Asian neighbors in terms of connectivity. This is important because Indonesia’s potential in the digital economy sector is widely recognized as being substantial. Being the fourth most populous nation in the world, Indonesia is already the third highest user of the Internet globally. Out of 265 million Indonesians, about 64.8% or 171 million have Internet connection, according to a March 2019 data supplied by the local Internet provider association (APJII). Indonesia market size contributes significantly to the rise of the country’s digital economy. According to data compiled by Google and Temasek, the Indonesian Internet economy reached $27 billion as of the end of 2018, and is poised to grow to $100 billion in the next 5 to 6 years. In fact, according to the same research, for every 2 dollars, spent by Southeast Asians for e-commerce, half of that is Indonesian money. This claim is further supported by a recent research done by HootSuite, a Vancouver based social media management company, which states that 86% of Indonesians use the internet for e-commerce, the highest in the world. In terms of productivity, with its current network infrastructure, the country has already produced five unicorns (startups with an estimated value above US$1 billion), the fourth highest number of unicorns in the Asia Pacific region, just below China, India and South Korea. These unicorns operate in the fields of ride-hailing (Go-Jek), e-commerce (Tokopedia and Bukalapak), digital payments (OVO) and travel bookings (Traveloka). <b>The development goes on<br /></b>While the undersea cables across the archipelago have been installed, there remains work to be done before Indonesians living outside of the main cities can truly have broadband access. As mentioned in a previous paragraph, some 35.2% of Indonesians are still not connected to the Internet. To improve the situation, the Indonesian government has announced that it is planning to build 4,000 BTS (Broadcast Tower Station) across the country to ensure that those living in the outskirts no longer need to travel far to be connected. Having said that, the government must still be able to work together with Internet service providers, such as state-owned PT Telkom, to create a internet access scheme that is beneficial for the public. Another pronounced challenge comes from the security side of things. The rapid rise of digitalization has raised concerns over the use of personal data and the spread of misinformation or hoaxes. In terms of the former, the new inaugurated Minister of Communication and Information, Johnny G. Plate, has announced that he is working with the Indonesian parliament to issue a law to protect personal information, though he has not mentioned any clear deadline as to when the government will introduce the bill. As for the latter, the government has not introduced any clear plan to combat hoaxes. In this regard, the government maintains its reliance on the revised law on electronic information and transaction introduced three years ago – which is generally regarded as so omniscient that it encroaches upon consumer’s rights – as well as the public’s own digital literacy.
Indonesia is a country with high economic potential. Its population of 260 million – the majority of which are young, middle-class, and productive individuals – as well as its abundance of natural resources, has been a part of the success stories of many European companies over the better part of the last century. However, entering the Indonesian market can be daunting prospect. It is no secret that Indonesia has many barriers of entry for foreign entities looking to set up shop in the archipelago. These barriers include the obligation to have local partner, a minimum paid up capital of at least Rp 2.5 billion (or around US$175,000), as well as various other requirements that differs depending on the entity’s business sector. This is where EKONID’s Marketing Desk Indonesia comes in handy. EKONID’s Marketing Desk Indonesia provides European companies a local project manager with a ready-to-use office, business support services and an extensive network of Indonesian market players. Aside from being a pool of potential customers and business partners, EKONID also conduct market studies for various sectors, the report of which are at your disposal. Furthermore, EKONID dozens of events every year in order to facilitate our members with their foray into the Indonesian market. <b>Main benefits </b><br />One of the main advantages in joining up with Marketing Desk Indonesia is the cost-to-benefit ratio. As mentioned earlier, Indonesian law require foreign companies to have a minimum paid up capital of at least Rp 2.5 billion. Joining with Marketing Indonesia circumvent this requirement completely, with companies able to freely spend their money as they see fit in terms of establishing their market presence in Indonesia. Aside from the benefit-to-cost ratio, here are some other advantages of Marketing Desk Indonesia: <ol class="rte_ol"><li><b>Recruitment<br /></b>EKONID recruits a local Marketing Manager Indonesia according to your criteria. We hire them and we take on all the responsibilities connected to the guidance of the employee in respect to local labour laws.<br /><b><br /></b></li><li><b>Working space<br /></b>EKONID provides your employee a workplace within our office, located at a strategic location in Jakarta, with the necessary office inventory and supplies.<b><br /><br /></b></li><li><b>Payroll service <br /></b>EKONID provides payroll processing for your employee that includes monthly payroll, tax and mandatory insurance calculations, as well as a payroll summary and a detailed payslip each month.<br /><b><br /></b></li><li><b>Business and legal consultation supports</b><br />EKONID provides business and legal consultation support for your employee for any export-import related questions, including market entry services such as business partner search, address research, individual market study, event organization, and many more.<b><br /><br /></b></li><li><b>Access to network of European and Indonesian companies<br /></b>You and your employee will also gain access to EKONID’s extensive network of local and European companies, associations and government institutions.</li></ol> In short, the Marketing Desk Indonesia concept allows companies to quickly react to market responses to their offered products and to be present in Indonesia without the time-intensive procedures of establishing their own company or representative office. For more information on Marketing Desk Indonesia, click here (<link "en/services/Marketing Desk Indonesia/" _self>https://indonesien.ahk.de/en/services/Marketing Desk Indonesia/</link>) or contact Ms. Olivia Nathalie Noor at Olivia.Noor@ekonid.id.