Unicorn RI Claimed Singapore, Economists Call BUMN Must Role in Funding

Economist Indef Bhima Yudisthira assessed Singapore's claims for four Indonesian startups that have a valuation of up to USD1 billion or commonly called Unicorns that would greatly harm the Indonesian economy. Because the four are Gojek, Tokopedia, Bukalapak, and Traveloka who have a major contribution to the growth of the digital economy.

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"It is true that it can be detrimental because of the dominance of foreign capital at our startup. Indonesia will only be considered a market when there is profit-sharing, the most enjoyed are other countries (in this case Singapore)," Bhima said when contacted by SINDONews in Jakarta on Tuesday (30 / 7/2019) 

He said that the capital outflow sharing profit could cause a deficit in the current account. In the current account component, there is a name for Primary Income. 

"In 2018 the primary income deficit is due to the transfer of profits abroad reached USD30.4 billion, equivalent to Rp.425.6 trillion. The consequence is widening CAD. The widespread CAD will make the economic structure of a country weak, "he explained.

He added Indonesian unicorns could be strong without foreign investors if state-owned companies play an active role in funding. "Provided that BUMNs are willing to make speculative funding to domestic startups. There should also be incentives for national private conglomerates to inject startups," he explained. { Source }