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Problems in Establishing a Startup in Indonesia

Problems in Establishing a Startup in Indonesia

Indonesia Startup Mapping Book and Database access to capital is still the biggest obstacle for companies in the country, which is 38.83%. This was based on the results of a survey of 992 companies by Bekraf together with the Indonesian Information and Communication Technology Creative Industries Society (MIKTI) in the 2018.

The development of technology company business in Indonesia is developing quite rapidly. At present, there are at least more than 900 local companies in Indonesia. The potential of Indonesian internet users is increasing from year to year, of course, is a wetland to establish a company.

Problems in Establishing a Startup in Indonesia

Small business activities are traditionally considered different from companies, the problems encountered are not much different. As many as 38.82 percents of companies stated that capital was their main problem.

Likewise with the issue of human resources (HR), which covers 29.41 percent of companies. That is, the company’s activities are still ongoing in the economic model of business in general. Capital is considered to be the main trigger in the success or failure of a business.

Tech-Companies Can Start From Micro Enterprises That Are Followed By Government Participation

Technology companies can be started by those who are micro and small scale. The reason is simple because the largest business base in Indonesia comes from this group.

The scale of business scale that is important in Indonesia is indeed Micro Small Business, there are 26.26 million businesses/companies or 98.33 percent of the scale of Micro Small Enterprises (MSE) and 0.45 million businesses/companies or 1.67 percent of Medium Large Enterprises ( UMB) “in the economic field in Indonesia.

Problems in Establishing a Startup in Indonesia

Later, both in small and micro-scale companies, the needs and participation of the government are still very important even covering many things including facilities, capital, markets, regulations, and human resources. Meanwhile, for companies that win only requires the role of government in terms of human resources and regulation, for large-scale regulations only require aspects.

It is indeed a question, when layoffs are happening a lot in national companies, many young people who flock to join or set up companies. In my opinion, the drive to enter the company is greater than just work & money. There is an idealism that is fought for. There is a developing opportunity to be achieved.

Problems That Arose When Establishing A Company

The wrong perception that often arises is that it is thought that companies are making applications. After launching the application, the task is considered complete. Company orientation is an impact (social, business, etc), which means that achievements need to be measured.

Creating and launching applications is optional, and only a fraction of the steps of making the public use the solutions we offer. Use of the internet doesn’t make the companies business easier to develop. Some of the problems that often arise in the establishment of companies are:

  1. The organization, namely the legality of business and the composition of founders

The intended organization includes business legality. The composition of founders (founders) also determines, concerning 2 things: skill & reputation. As much as possible vary skills to be able to complement each other. While the reputation of founders is important because what people believe in a companies is the reputation of its founders.

Problems in Establishing a Startup in Indonesia
  1. Not willing to scale-up and not oriented long term

Companies are not willing to scale up & are not long-term oriented. Do not make sustainability & accessing the global market as a goal.

  1. Access and space to grow

Whereas access & space to grow in the form of areas involving adequate research, access to capital, Public Relations/media, and mentors. The main cause of startup that I mentioned earlier in the general problem of companies in Indonesia, namely networking.