The Digital Ecosystem as Inspiration

KOMPAS/TOTOK WIJAYANTO

Workers complete the manufacture of wall hangings made of medium density fiberboard (MDF) and images printed from digital sticker prints at small and medium businesses in Depok, West Java, Wednesday (16/9/2020)

Indonesia’s digital ecosystem is becoming established. Its upstream and downstream industries are getting stronger. Small and medium enterprises (SMEs), technological companies as well as the capital market are growing in this ecosystem.

The digital ecosystem is an inspiration for transformation across all businesses. A digital transformation demands more flexible business strategies so companies can focus on product innovations. The commitment of business leaders and the competence of their personnel are important elements in determining the success of business entities in their transformation. Digital transformations are evolving across business entities.

State-Owned Enterprises (SOEs) Minister Erick Thohir in a discussion during the CEO Live Series #2: Digital Transformation and Innovation in the Economy organized by Kompas and East Ventures in Jakarta on Thursday (11/11/2021) said SOEs were also encouraged to embark on their digital transformations without overlooking their role as corporations with an obligation to provide public services.

Transformation may be a difficult decision, but it has become mandatory for businesses to survive.

Private companies that have continued using their old business model have to undertake business transformations. In doing so, they can discover new business models, make innovations and adopt not only new technology but also digital culture. Transformation may be a difficult decision, but it has become mandatory for businesses to survive.

Another source of inspiration for transformation is the emergence of start-ups across different sectors in the digital ecosystem. They cause disruption even though they see their role as partners in introducing innovations. They do not mess up ongoing businesses but embolden existing players to transform.

ARSIP KEMENTERIAN KOPERASI DAN UKM

Small and medium business art products on display at Smesco Hub in Nusa Dua, Bali, Friday (10/29/2021).

The presence of start-ups can push existing companies to prepare for change, as former business models become no longer relevant. Their existence makes businesses more efficient. Start-ups can also empower SMEs to become knowledgeable about digital technology and bring them into a new world of greater convenience.

Another development in the digital ecosystem involves Indonesia’s capital market. The presence of technological company Bukalapak with the code BUKA signals the inclusion of technology companies into the market, while at the same time giving an example to other technological companies to enter into this source of public funding.

It is likely that this corporate action will be the envy of several neighboring countries who do not yet have a technology company in the capital market.

The appearance of BUKA demonstrates to the world that technology companies in Indonesia can acquire public funds. The Indonesian market also has great power in absorbing the shares of technological companies. It is likely that this corporate action will be the envy of several neighboring countries who do not yet have a technology company in the capital market.

The digital ecosystem in Indonesia now plays an important role, offering inspiration and partnerships in the transformation of the economy, the empowerment of SMEs and the development of new sources of funding. But there should be no negligence – one of the principles of the digital ecosystem is that innovations must not pause. Innovations and transformation must go on and cannot halt once one set of goals has been realized.

(This article was translated by Aris Prawira)