Opportunities to Establish EdTech Startup Companies To Consider

Opportunities to Establish EdTech Startup Companies To Consider

  • InCorp Editorial Team
  • 22 December 2022
  • 6 minute reading time

Indonesia offers ample opportunity in the education technology (EdTech) sector. There are approximately 55 million students enrolled from kindergarten through the university level. The number of students and the country’s growing internet adoption can be the foundation for establishing EdTech startup companies in Indonesia. 

The ambition is also supported by the possibility of 74% of the population accessing online material, another factor driving the sector’s rise. 

Opportunities in the EdTech Startup Scene

Opportunities to Establish EdTech Startup Companies To Consider

The pandemic forced schools to close, resulting in pupils learning from home. While we have known to live with the pandemic, the sector is predicted to expand further.

In Q2 2020, the industry saw a 2x QoQ growth. The impacted change can be tracked since students were forced to look for additional resources to supplement the teachings, which increased demand for EdTech-based solutions.

Following the significant growth, SaaS startups are also looking to participate in edtech development. The collaboration will give more access and options for people to gain the knowledge they need anywhere, anytime. 

The realization workforce includes preparation courses and a new industrial sub-sector. Those two may also be the primary driver for the industry’s continuous expansion. 

Consult on our company registration or business licensing services before starting your expansion and let us at InCorp Indonesia (formerly Cekindo) help you grow your own edtech company.

Business Model for EdTech Startup Companies in Indonesia 

Platforms like Skill Academy and Pijar. Which offer courses and boot camps to equip workers with transferable skills like coding, graphic design, and entrepreneurship, are included in this category. 

The two companies modeled to help increase the youth employment rates caused by the Covid-19 pandemic. The initiative is only one of a million missions to align with the business. There are various categories for edtech startups for their development, including: 

K12 Learning Apps

The K12 startup app is a high-quality video tutoring platform created particularly for use in school curricula. 

Platform for Test Preparation 

Students can practice for admission tests like the LNAT, IELTS, and CFA using this EdTech platform. Students may stay updated, track their progress, build confidence, and study for examinations at their own pace and convenience with this type of software and mobile apps.

Platform for Language Learning 

This approach enables users to practice any language they are already familiar with or acquire a new one. And this is done in a gamified and engaging manner. 

Read more: How Important Is Modern Technology in Education Systems?

Utilizing Career Development 

They assist graduates and other professionals in comprehending the fundamentals of their ideal position and speeding up and effectively preparing for it.

Learning Management 

Software or platforms that manage, measure, report, and give learning resources and other items like discussion forums. 

Administration 

Used to manage calendars, determine salary, charge for services, plan special events, etc. 

With the collaboration between edtech and SaaS companies, much-untapped business potential can affect people from various backgrounds.

One of the possibilities is to develop an inclusive platform, especially for those who live with disabilities. Edtech companies and SaaS startups may improve their basic features, such as audio recordings and text-to-speech solutions, to be more advanced and easy to operate. 

Tips to Establish Tech Startup Companies in Indonesia

A startup firm is anticipated to expand swiftly, take over a specific market segment, and eventually grow into a significant enterprise. 

Despite the hiccups, startups frequently prioritize fresh concepts and consumer problem-solving. 

It’s correct for some individuals to think of startup businesses as businesses involved in technology, as startups typically rely on technology to aid business growth. 

The phrase “digital startup” is more frequently used today to refer to tech, web, or Internet-related businesses.

Establishing a startup is challenging; many entrepreneurs fail or get trapped in a rut before giving up. Here is some advice to help you jump-start your startup: 

Assemble a Strong Team and Act Consistently

A strong team must be assembled and maintained for a startup. The fledgling business will not grow and may even perish without strong members. You and your team must have the same vision to work well together.

Keep Asking The Right Questions

What distinguishes startup businesses from small and medium enterprises is their thinking critically and innovatively. This allows one to continuously look for gaps that are still empty in existing markets. 

Create an Effective Business Roadmap 

A road map is a direction for doing something to accomplish a goal. This help examine concepts, issues, and research and keep track of your company’s development. Startup actors frequently fail because they overlook simple, crucial tasks like creating a roadmap and master timeline. 

In addition to using the insights as a guide to help decide company direction, business actors must frequently update roadmaps based on current needs and developments. 

Keeping Your Tech Companies Safe

Google worked with the Ministry of Communication and Information Technology (Kemenkominfo) during the G20 Digital Innovation Network meeting in Bali on September 3rd.  

The event focused on imparting knowledge to startup business members of the 1000 Startup National Movement and Startup Studio Indonesia. Experts from the Google Safety Engineering Center (GSEC).

Participants were made to understand the importance of working with Google for Startups, offered training, shared knowledge, and provided valuable resources on privacy.

Google clarified to all startups that the entire privacy protection process needed to be discussed and designed from the beginning of the development process. Understanding an institution’s age or size does not constrain hacking, and online attacks would be best. 

Experts at GSEC said that to safeguard customer data privacy, all businesses must follow three principles:

  • Secure by Default: To keep data confidential, security is required. It is essential to ensure that your data is protected.
  • Private by Design: Considering the privacy issue from the beginning of the product/service development by considering strategies to avoid collecting sensitive customer data. 
  • You’re in Control: Consumers should have the power to control who has access to their data, and it’s not just a matter of erasing it.

Those are the general overview regarding the education technology companies that continue to proliferate, specifically in Indonesia. 

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

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Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

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It should take between 30 to 45 days.