Foreign ministry encourages start-up ecosystem for economic diplomacy

Foreign ministry encourages start-up ecosystem for economic diplomacy

Deputy Foreign Minister, Mahendra Siregar, during an event organized by the Ministry of Foreign Affairs for start-ups held in Jakarta on Monday. (25/11/2019). (ANTARA/Suwanti/AK)

Jakarta (ANTARA) -  

The Ministry of Foreign Affairs has encouraged the start-up ecosystem or domestic start-ups to support economic diplomacy, which is one of Indonesia's foreign policy priorities.

During an event organized by the Ministry of Foreign Affairs for start-ups in Jakarta on Monday, Deputy Foreign Minister, Mahendra Siregar, said that start-ups in the digital economy are emerging as an important foundation to boost the country's economy in the future.

"And of course start-ups are a mainstay and become a focus of the Ministry of Foreign Affairs for economic diplomacy," Mahendra said.

Associated with the context of the current world economy, Mahendra said the world economy experienced the lowest rate of economic growth since the global financial crisis 10 years ago and international trade was also the lowest 20 years ago.

According to Mahendra, Indonesia as a country with a large market is able to survive without the need to shut down and apply the principle of protectionism.

"What can be done is to encourage an ecosystem and competitiveness that is based in the country but then able to compete at the international level; this is suitable for the information technology, digital and internet sectors," he said.

To do this, the ministry of foreign affairs established coordination with the ministry of research and technology (Kemenristek), which conducts direct assistance to start-ups through the Technology-Based Starter Company program.

From 2015 to 2019, there were 749 start-ups, and 558 prospective start-ups participated in the business incubation program at the Ministry of Research and Technology.

Minister of Research and Technology, Bambang Brodjonegoro, emphasized that the development of technology-based start-ups must be balanced with the development of start-ups in the real sector.

The move is intended to ensure an equal number of start-ups exist, which not only provide the platform but also commodities, especially in the buying and selling sector.

"If this is not ready, the platform will be filled with imported goods," the minister said.

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