The development of startups in these four sectors is to increase the positive social and economic impact.
Jakarta (ANTARA) - Co-operatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki has said that the government is focusing on developing startups in four sectors, namely agribusiness, aquaculture, environmentally friendly business, and technology.

"The development of startups in these four sectors is to increase the positive social and economic impact," he said during an entrepreneurship workshop at Gadjah Mada University (UGM) in Yogyakarta on Wednesday.

In a statement released by his ministry, Masduki informed that there are 2,605 startups in Indonesia, making it the sixth country with the most startups in the world. In terms of valuation, there are 15 Indonesian startups that have grown into unicorns and decacorns.

However, he said, Indonesia's startup economy is considered to be undirected and is focused more on trade and financing services.

As a result, the contribution of startups to the gross domestic product (GDP) is low compared to other countries such as China, the minister highlighted.

He said that Indonesia's digital economy needs to change direction and focus on the industry sector and the use of technology, such as the Internet of Things (IoT), artificial intelligence (AI), and smart factories.

Masduki noted that because of IoT utilization in the production and industrial aspects, 41 percent of China's digital economy contributes to its GDP. Meanwhile, Indonesia's digital economy is still focused on e-commerce.

Although several Indonesian startups have grown into unicorns, such as eFishery for fishery products, Chickin for chicken farming, Jala for shrimp, and Elevarm for horticulture, it is not enough, Masduki said.

He added that startup potential in agribusiness, aquaculture, environmentally friendly business, and technology sectors is still wide open. He then urged the government and all stakeholders to jointly carry out the four stages of startup development.

The four stages are providing a solution to a problem, assessing the market, business model suitability, and business sustainability.

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Translator: Shofi A, Kenzu
Editor: Aditya Eko Sigit Wicaksono
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