Indonesia launched government-backed initiative called “1,000 Startup Movement” with the goal to grow 1,000 startups until 2020. They will together value approximately $10 billion US but unfortunately, the movement does not have any monetary support from the government.
From June to September, the movement will start in Jakarta, Yogyakarta and Surabaya, then move onto other cities such as Bandung and Malang. The initiative will consist of workshops, hackathons, boot camps and incubation programs but still perceived as an ambitious target,
Consider that from the 1,000 startups, only a fraction will survive (the rule of thumb often cited is that 90 percent of startups eventually fail).
The goal is to have 200 startups across 10 cities emerge from the funnel each year, which would amount to 1,000 startups by the end of 2020. Each startup would need to reach a valuation of $100 million to survive in the long term. This is extremely ambitious, as Indonesia has only produced a handful of companies that might have reached unicorn status, such as C2C marketplace Tokopedia.
The government is endorsing this program, but it is not providing monetary support.
By 2017, the movement will focus on Denpasar, Medan and a few others. Indonesia’s Ministry of Communication and Information Technology will be collaborating with tech ecosystem builder, Kibar. This means that Kibar will have gather all the support from event organizers and startup mentors, including investors to sustain this initiative.
Initiative but no endorsement, what now?
Regardless, it is still vital for the ecommerce ecosystem to have a government-backed initiative. Small businesses and tech initiatives benefit from exposure and training sessions supplied through workshops and incubators but without seed funding or cash flow, initiatives will remain just that. Budget allocations should be given to get the startups off the ground.
A version of this appeared in Tech in Asia on June 22. Read the full article here.