The market is currently worth USD40 billion, with a thriving number of unicorn start-ups owing their success to technology
On Thursday, John Riady, director of PropertyGuru Indonesia Award-winning firm Lippo Group, told CNBC that the country’s technology sector is currently at an inflection point and forecasts a substantial growth between USD200 to 300 billion in the next two to three years.
“Indonesia is the most exciting digital and technology market in Asia and arguably the world,” said Riady, adding that when their group “first invested in technology in 2012, the size of the entire technology market in Indonesia was approximately USD100 million. That same asset class today is about USD40 billion.”
Lippo Group is among the biggest conglomerates in the country, with businesses in several industries, from real estate and retail to healthcare and telecommunications.
Since its first tech venture in 2012, the group now boasts 30 investments in Indonesia’s tech arena, including Jakarta-based digital payments platform OVO. He believes that the country is reaching an inflection point in technology, comparable to China in the early 2000s when tech adoption surged swiftly.
Indonesia is the fourth most populous country with over 275 million people and is the second-largest economy in Southeast Asia. CB Insights revealed that it is home to unicorn start-ups or private companies that are valued at USD1 billion and above, including OVO and e-commerce firm Bukalapak.
Investors agree that the country is ready for a digital boom due to the expanding middle class and the increasing number of internet users. Although, some may find the market quite complicated to handle seeing as the population is scattered across 10,000 islands, most with its own language and culture.
Nevertheless, the tech sector’s great potential for growth has enabled internet start-ups to prosper and have caught the eye of foreign investors.
A walk in The PARQ: Bangkok goes green with mixed use
With its green credentials and high-tech trimmings embodying modern office development, The PARQ provides an urban oasis in Bangkok for its tenants
China restricts land portions in a bid to end developers’ panic buying
As China’s central government aims to rein in runaway real estate prices, new measures restrict land auctions to three per year in large cities including Beijing and Shanghai
6 of the most breathtaking sights in Tangerang, Indonesia
Home to Jakarta’s international airport, Tangerang is emerging as a viable investment option thanks to its lifestyle and infrastructural perks
Equality hits a wall in Israel as West Bank becomes site of unlikely real estate boom
An emboldened Israel pushes forward with its construction of illegal settlements in Palestinian territory