Local Start-Ups Look to Woo Japanese Tech Investors

The Financial Services Authority (OJK) said it was considering setting a cap on interest rates and the size of loans offered by fintech firms, in a move aimed at minimizing the risk of defaults. (JG Photo/Tabita Diela)

By : Tabita Diela | on 5:07 PM September 12, 2017
Category : Business, Economy

Jakarta. The Ministry of Communications and Information Technology, in cooperation with the Japan External Trade Organization, held an event in Jakarta on Tuesday (12/09) to partner Indonesian start-ups with Japanese investors in an effort to lure foreign investments into the country and grow the local tech industry.

"There's an ongoing mindset shift in Japanese investors," ICT Minister Rudiantara said, adding that now is the right time for Japanese businesses to partner with up-and-coming tech start-ups in Indonesia.

Rudiantara pointed to Indonesia's steady economic growth over the past 10 years, ongoing regulatory reform, infrastructure development, a newly upgraded investment ranking from major rating agencies and a widely-circulated projection that the country will become the fifth largest economy in the world by 2030.

"Companies [...] such as Sumitomo, are starting to invest in the digital industry," Rudiantara said in a press briefing.

The Japan External Trade Organization, known as Jetro, brought 50 representatives from 20 Japanese companies to meet 45 local start-ups specializing in various sectors, including in e-commerce and financial technology.

"There are several interesting areas of investments [...] for Japanese investors, like Go-Jek and Tokopedia," Daiki Kasugahara, the head of Jetro's Jakarta office, said.

Go-Jek and Tokopedia both received investments from Japanese companies in the past.

Both start-ups are now considered "unicorns," meaning that they are valued at over $1 billion.

According to Rudiantara, the government will hold similar events abroad to promote investment opportunities in Indonesia.

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