The demographic bonus currently occurring in Indonesia is a window of opportunity that the startup and technology industries can utilize to continue growing. The large population is an opportunity to enjoy a huge market, but also a challenge to encourage the development of human resource productivity.
This was conveyed by Edward Gunawan, Managing Partner of Skystar Capital, in an interview during the Kompas Bisnis program some time ago.
Edward said that from now until the next 10-15 years, Indonesia will be in a demographic bonus situation. This large population can boost not only consumption but also production. This, Edward continued, is the best moment to leverage technology to increase the production capabilities of the community.
“Innovation will drive consumption. And this increasing consumption need will drive the birth of the next innovation. So, we at Skystar Capital are optimistic about Indonesia,” he said.
He added that to optimize this opportunity, the government and entrepreneurs need to focus on taking a clear position regarding the Indonesian economy. According to him, entrepreneurs need clear direction on where the focus of Indonesia’s economic development should be positioned.
Edward gave the example of China, which chose to focus on manufacturing development. Meanwhile, India focuses on technology services. The United States (US), on the other hand, is heavily developing Artificial Intelligence (AI).
“So that entrepreneurs and the government can focus together in alignment to build the economy with the country’s and government’s future plan,” Edward said.
According to him, the government needs to focus on empowering entrepreneurship. With entrepreneurship developing, the business world can continue to grow. This can absorb employment and increase productivity.
Amidst technological developments, one effort to boost productivity is encouraging the adoption of AI. Edward explained AI as a technology that is increasingly cheaper, faster, better, and able to understand context more effectively. The potential of AI for the Indonesian economy is very significant in increasing productivity.
Edward gave an example that a job that initially required 10 hours can be summarized to just 1 hour thanks to AI. Routine sectors such as accounting, customer service, and call centers can be automated by AI, allowing Indonesian human resources to shift and focus on more creative work.
The final key is to treat digital and technical talent, especially those fluent in AI, as Indonesia’s most valuable infrastructure. This is the essence of sectoral collaboration, superior human resources, and Research & Development (R&D) for the future of Indonesia’s digital economy.
Currently, Skystar Capital has more than 50 investment portfolios spread across more than 9 business sectors, including fintech, edutech, healthtech, proptech, logistics, web3, and others.
