By: Raditya Rahman )*
The existence of the Job Creation Law is predicted to improve Indonesia’s economic conditions which had fallen at the beginning of the pandemic. There is an investment cluster that will motivate investors to enter Indonesia. They will invest and also work with e-commerce entrepreneurs, so that they can be promoted to become unicorns.
The online market during the pandemic is getting more crowded, because many people choose to shop there rather than at traditional markets. Currently there are many e-commerce sites in Indonesia that sell a variety of necessities, ranging from rice to oil. sugar, pastries, to trousers. But unfortunately some of them were shaken because of lack of capital.
The Job Creation Law will be a savior, because it has a positive domino effect. When laws and derivative regulations are implemented, it will be easier for investors to enter Indonesia. In fact, they have always been involved, but they are constrained by hyper-regulation, aka excessive rules and sometimes it feels artificial. This strange rule will be removed by the Job Creation Law.
Foreign investors are also happy that the bureaucracy in this country is cut, so that the rules are no longer confusing. Licensing problems are also made easier and faster, only a maximum of 7 days has been completed. Investors no longer glance at neighboring countries, but go to Indonesia with relief. When investors enter, they will invest in local companies.
One type of local business for potential investors is an e-commerce company. Because nowadays the market is turning to cyberspace, and many people find it easier to shop online than to go to a supermarket. When an investor provides funds to a local e-commerce company, it will thrive.
Actually, there are already several e-commerce companies that have foreign investors’ backing. They are getting more advanced because they are given an injection of funds, so that their business is growing, even at the unicorn level. Unicorn is the name for a start-up business that already has a valuation of more than 1 million dollars.
There are still many e-commerce companies that are managed by Indonesian citizens and have great potential, but unfortunately they are still constrained by capital. If there are foreign investors, e-commerce business people can carry out more promotions in order to streamline their business. Because creating apps, sites and social media accounts is not enough.
To make his business progress, it is necessary to sacrifice money, for example by giving a free postage promo. Of course, with the conditions of purchasing goods with a certain nominal value. Many people will be interested and install the e-commerce application, because they are tempted by the free postage promo. The term is “burn money”, because entrepreneurs dare to lose to get profit.
In addition, if there is an injection of capital from investors, e-commerce entrepreneurs can innovate with their business. The existing applications are not only for online shopping, but there are also games, there are plant watering sessions with coins that can be exchanged for vouchers, prize draws, etc. Of course, making the application requires a high cost.
The public need not be afraid because investors enter, it does not mean a 100% acquisition. They invest and become the majority share owners, but the original business owners can still control their business. So, foreign investment is not modern colonialism, but a mutually beneficial cooperation between 2 businessmen.
The existence of foreign investors has had many positive impacts on Indonesian e-commerce entrepreneurs, because they can increase capital and develop their business. Who knows, someday they will rise to the proud level of a Unicorn and become a big company. The business world in Indonesia will be more vibrant because the e-commerce is more advanced.
)* The author is a contributor to the Cikini Press Circle and Student