In brief: Indonesia president Jokowi to feed Indonesia’s unicorns with tax breaks

by Felicia Calle
  • Indonesia’s president, Jokowi is looking ahead to his next five years with big plans to support the nation’s digital economy.
  • The new tax breaks will help Indonesia to nurture its next unicorns, as well as increasing investment into one of Southeast Asia’s largest economy.
  • Indonesia’s internet economy was projected to be worth US$27 billion in 2018, making it the largest in the region and three times the size of second-place Singapore.
  • These four unicorns – ride hailer, Go-Jek, online travel company, Traveloka and net marketplaces, Tokopedia and Bukalapak, have helped the country’s economy grow at around 5% annually over the past half-decade.
  • The new measure aims to encourage human resources development in the digital sector, export-oriented industries, as well as local businesses that produce substitutes to imported goods.
  • Jokowi also said that he wants to create ripple effects by “connecting online with offline ecosystems.”
  • Indonesian unicorns can help the growth of small and micro businesses across the archipelago, bringing small businesses to grow along with them.
  • The steps such as the digital economy push, structural reforms, and further infrastructure development, are expected to help propel Indonesia into the top 10 of global economies by 2030 and the top four by 2045.
  • He said he wanted the economy to grow at a rate “beyond” the current 5%.
  • In another move to stimulate the economy, Jokowi is also planning to relocate the capital.

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