
The rise of the Asian Tigers is the economic success story of the late 20th / early 21st century. Hong Kong, South Korea, Singapore, and Taiwan have seen exponential economic growth and corresponding improvements in their standard of living.โฏย
Fifty years ago, South Korea was still recovering from the effects of a devastating war. Fast forward to today, and itโs the most connected country on Earth.ย
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Indonesia shares many of the qualities that have made the Asian Tigers roar. But even so, its extraordinary potential has yet to be unleashed. In this article weโll explore why that might be, and reveal how Indonesia could soon be rivalling the worldโs biggest innovation powerhouses.ย
Why Has Indonesia has Been Left Behind in the Asian Economic Revolution?โฏย
Various studies, from both the OECD and the Indonesian government itself, have identified one overarching cause. Itโs Indonesiaโs continued over-reliance on exports of natural resources โ rather than nurturing and developing high-value tech industries and products, like their Asian Tiger counterparts.ย ย
Indonesiaโs GDP per capita remains relatively low and poverty is a persistent problem. It has only attracted modest levels of foreign investment, it hasnโt developed a technology-intensive industry structure, and imports of high-technology products outweigh exports.โฏย
Itโs clear that Indonesia would benefit immensely from refocusing on technology-based industry. Yet still today, Indonesia falls under the ASEAN average in terms of R&D expenditure, business innovation, patent applications, and scientific publications.โฏย
Indonesia is the Perfect Place for Innovation to Flourish
Indonesiaโs population is young, its educational standards are improving quickly, and the middle class is growing. Importantly, Indonesia is developing a critical mass of STEM (Science, Technology, Engineering, Maths) graduates. In fact, the country is projected to be the fourth largest producer of STEM graduates in the G20 by 2030.ย ย
Indonesiaโs innovation potential is high, and the countryโs government has recognised that, too. In recent years the government has taken important steps to strengthen Indonesiaโs national innovation system โโฏincluding the โMaking Indonesia 4.0โ initiative.ย ย
โMaking Indonesia 4.0โ: Indonesiaโs Digital Start-Up Ecosystemย
With government support, Indonesia’s start-up ecosystem has slowly been developing. The โMaking Indonesia 4.0โ initiative recognizes the critical importance of technology for the future of the country. It brings entrepreneurs (and their ideas and skills) together with mentoring support, infrastructure, and other resources. All with the aim to encourage the creation and development of new companies.ย ย
If look at the top-level results, the initiative seems to be work. โMaking Indonesia 4.0โ has already produced three unicorns (start-ups valued at more than $1billion) and one decacorn (valued at over $10 billion).โฏย
However, when you look beyond the headline heroes, Indonesia still faces challenges that hinder the development of an active entrepreneurial sector. One of the largest is the lack of financial support for new ventures.ย
Indonesiaโs central government allocates and distributes funds for R&D, which is conducted primarily by national research centers and universities. This centralized support mainly goes to Government institutions, meaning there is an urgent need for innovation funding for private businesses and entrepreneurs. Small-scale tech entrepreneurs were the catalysts of the Asian Tiger economic miracle, and they still find it very difficult to get the funding they need to survive and thrive.โฏย
Indonesiaโs Competitiveness Ranking Must Improveย
Indonesiaโs competitiveness has increased significantly in recent years. In the IMD World Competitiveness ranking of 63 economies, Indonesia rose from 43 in 2018 to 32 in 2019. However, the countryโs continued growth is hampered by lower investment in R&D than its competitors. In terms of the number of patent applications per million population, Indonesia ranks 83rd out of 100 countries, with just 37 patent applications in 2017.ย
In 2018, according to the World Bankโs Doing Business index, Indonesia scored 81.2 out of 100 in the metric for โstarting a business,โ ranking it 134th out of 190 countries.โฏย
Indonesia Needs a Technological Transformationโฏย
Technological innovation was the key driver of the Asian Tigersโ success. It clearly has a critical role to play in unlocking Indonesiaโs growth potential, too. Indonesiaโs ability to boost its competitiveness and productivity will rely on the ability of firms to take advantage of the opportunity new technology brings. Itโs also vital to unleash the entrepreneurial ambition needed to turn innovative ideas into successful businesses.โฏย
If we look at the approach taken by the Asian Tigers, we can identify three key steps:
- Build new capabilities in tech-based industriesโฏย
- Shift focus from import towards exportย ย
- Promote domestic competitionย
The above three steps were made possible by venture funding from each countryโs enthusiastic entrepreneurs. And while Indonesia has just as much (if not more) entrepreneurial flair, thereโs one key difference; the money its entrepreneurs need isnโt there at the scale itโs needed. Yet.ย
The Dacxi Chain Could Help to Change That
The Dacxi Chain is the worldโs first global tokenized equity crowdfunding platform. It uses blockchain technology to create digitized versions of company shares, that anyone, anywhere in the world can purchase. It will deliver a level of innovation funding unlike anything seen before โโฏenabling it to be distributed fairly and equally, everywhere in the world.ย ย
Innovation is blind to race, religion, gender and culture. There are countless fantastic ideas and entrepreneurs in every countryโฏโโฏand Indonesia is no exception. With the right funding ability, Indonesiaโs entrepreneurs and innovators can and will change the country for the better.โฏThey just need the system, support and the confidence in funding to do it.ย ย
Thatโs where the Dacxi Chain comes in. The Dacxi Chain will provide Indonesia with a viable source of investor funding and investment opportunities, far beyond the scope of the Governmentโs venture funding schemes. It will help connect entrepreneurs and investors simply and easily, in a regulated and well-managed environment that gives success its very best chance.โฏย
Founding Local Business Ecosystemsย
Overseas examples have shown us that a single successful business can form the building blocks of an entire local business ecosystem. Ancillary businesses develop to serve the needs of the core business, its staff, and their families. This multiplier effect quickly improves the quality of life of the whole community.ย
Take Nokia, for instance. Originally a rubber-boot manufacturer, Nokia evolved into a world-leader in the telecommunications sector. Not only did it make fortunes for its shareholders, the company seeded literally thousands of other, smaller tech companies โโฏwho turned Finland into one of the most vibrant tech countries in the world.โฏย
Dacxi believes that the same thing can happen in Indonesia. By introducing Indonesia to an efficient world-wide equity crowdfunding system, based on the unique capabilities of tokenization, the Dacxi Chain can help entrepreneurs realise their dreams. It can help them raise the capital they need to build a vibrant new tech economy, and release another Asian Tiger.ย
For the latest information on Dacxi Coin and the Dacxi Chain, visit dacxicoin.io. You can download the Lightpaper, and join the Dacxi Coin telegram community. For media enquiries please contact pr@dacxi.comโฏย
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