Indonesia, the vast archipelago country in the Southeast Asia, is one of the fastest growing economy in Asia. Part of which, has several startup unicorns that played important role in the industry.
Four of Indonesia's unicorns: GO-JEK, Tokopedia, Traveloka and Bukalapak, have boasted popularity among users, making them valued at way beyond $1 billion.
With them receiving foreign investments, their shares have been divided, among the owners, making those companies not anymore "Indonesians."
Rudiantara, the Minister of Communication and Information Technology, said that people should not speculate foreign companies in owning those unicorns.
Those unicorns receive funds from multiple foreign investors, but that doesn't mean those investors control the startups.
The unicorns were receiving funds from financial investors, and are not acquired, according to the Minister. What this means, the investors aren't involved in any parts of the startups' management and won't interfere with their operations.
"From what I know, they are financial investors, so only funds that poured in, and they are not involved in the management," the Minister said.
The largest of the four unicorns, is GO-JEK, founded by Nadiem Makarim. Having received more than $1.2 billion from Google and others, the startup is valued at around $4 billion (Rp52 trillion). The startup aims for a $9 billion valuation this 2019.
As for Tokopedia, the startup has received $1.1 billion from Alibaba Group. Previously in 2014, the startup also received $100 million fund from Softbank Japan and Sequoia Capital.
Traveloka on the other hand, was founded by Ferry Unardi, and received its investment from Expedia, a U.S.-based travel company. Receiving $350 million in June 2017, the company is valued at around $2 billion in 2019.
Bukalapak that comes last. According to its CEO Achmad Zaky, the company has the valuation of around Rp13,5 trillion, or a little above $1 billion.
According to Rudiantara, the investors that funded the startups, none of them have a double digit share. They have only a single digit, each.
"I know precisely that none of the investors have a double digit share, all of them are single digit, explained the Minister.
It should be that way, because it would prevent them from having full control of those companies.
In a good way, Rudiantara is certain that the founders of the four startups are already learning much from those global players.
But according to Bobby Adhityo Rizaldi, a member of the People's Representative Council (DPR), foreign investments owning most of those startups' share is a result of Indonesia's financial sector in having no ability in providing support to those startups.
According to him, banks and other local financial investments weren't able to support those startups' development at a massive scale.
"It's a pity that the millennial industry is financed by foreign companies," he said.
But still, the big capital investment those startups receive, will give them the ability to grow. With the support they get, they will have a strategic role in the industry, in which they can control the traffic data and the consumers in Indonesia.