Trade Minister Warns about E-Commerce Funding Crisis
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Trade Minister Thomas Lembong asked Indonesia e-commerce companies to be careful in assessing risks posed by the e-commerce business.
“What would happen if the funding stopped? In the United States, tech business boom has started to decline,” Thomas said at the Indonesia E-commerce Summit & Expo in BSD, South Tangerang, on Wednesday, April 27, 2016. “I’m always paranoid. As a risk manager, I always ask ‘what if’.”
Thomas added the natural selection in online business would determine which companies would continue exist. According to him, a business with a fast downturn will have a short cycle. Therefore, Thomas suggested business owners to prepare for “rainy days”.
The Trade Minister revealed that other ministers in President Joko “Jokowi” Widodo’s Working Cabinet were proud with Indonesia’s e-commerce rapid growth. Thomas said that he wanted his ministry to learn from former US President Bill Clinton’s administration that supported the development of the Internet. Thomas explained Clinton improved the Internet with ‘light touch’ and refused the temptation to regulate everything on the Internet.“Innovation can thrive without restrictions. There has to be a space to develop. Innovators are usually rebellious,” Thomas added.
Questions & Answers
Q.What specifically caused the Trade Minister to warn Indonesian e-commerce companies about funding risks?
What specifically caused the Trade Minister to warn Indonesian e-commerce companies about funding risks?
Minister Lembong observed a decline in the tech business boom in the United States and questioned what would happen if funding for e-commerce companies in Indonesia stopped. He described this as a 'paranoid' but necessary risk assessment.
Q.How did Trade Minister Lembong suggest e-commerce businesses should prepare for potential challenges?
How did Trade Minister Lembong suggest e-commerce businesses should prepare for potential challenges?
Thomas Lembong suggested that business owners should prepare for 'rainy days'. He stated that a natural selection process in online business would determine which companies ultimately survive, implying the need for resilience and careful planning.
Q.What approach did Minister Lembong advocate for government involvement in e-commerce, drawing on historical examples?
What approach did Minister Lembong advocate for government involvement in e-commerce, drawing on historical examples?
Minister Lembong wanted his ministry to learn from former US President Bill Clinton’s administration. Clinton supported internet development with a 'light touch', avoiding the temptation to over-regulate and allowing innovation to thrive without restrictions.
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