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Indonesian start-ups, larger firms to seek partnerships as digitalization picks up
“Corporations have started to see the urgency of digitalization, and start-ups see the need to reduce risk,” East Venture partner Melisa Irene said.
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“Corporations have started to see the urgency of digitalization, and start-ups see the need to reduce risk,” East Venture partner Melisa Irene said. (Shutterstock.com/fatmawati achmad zaenuri)
E
xperts expect more Indonesian start-ups and established corporations to collaborate in efforts to expand their businesses and become top players in their industries as the pandemic accelerates digitalization.
Venture capital firm East Ventures partner Melisa Irene said collaborations between start-ups and larger corporations were ideal when both parties could value each other’s position as a disruptor and foster long-term collaboration.
“I think we are expecting to see even more collaborations because now corporations have started to see the urgency of digitalization, and start-ups see the need to reduce risk by riding on existing business infrastructure,” she said during a webinar hosted by PricewaterhouseCoopers (PwC) on Tuesday.
Companies that were in a position to grow, Melisa added, would continue to reach for profitability in the coming year, a trend that she also expected in the country’s start-up ecosystem.
Read also: More start-up partnerships 'expected' following Gojek, Tokopedia merger talks
The COVID-19 pandemic has forced more Indonesians to turn to digital services to fulfill their needs amid widespread government restrictions to limit the spread of COVID-19. The e-Conomy SEA 2020 report by Google, Temasek and Bain & Company found that 37 percent of all digital service consumers in Indonesia had joined in 2020, slightly higher than the Southeast Asian average, and 93 percent of these new consumers intended to continue buying online after the pandemic.
The report forecast that Indonesia’s digital economy would grow 11 percent year-on-year to US$44 billion last year despite the challenges of the virus and would grow to $124 billion by 2025.
