Small and Medium Enterprises (SMEs) have contributed 60.5% to the National GDP. Towards Golden Indonesia 2045, SMEs are expected to become the backbone of the Indonesian economy that dominates the market. To support this aspiration, the Directorate of Business Development of UGM initiated a business startup incubator event, Demo Day Innovative Academy 2023, which was attended by more than 20 national startups on Saturday (18/11).
Innovative Academy is one of the ecosystem builders and pioneers of technology-based startup incubators on campus in Indonesia. This unit aims to empower youth and the digital ecosystem to take part in building Indonesia as a digital economy leader in Southeast Asia. “This Demo Day is actually the beginning of a long journey for friends who have started with guidance at Innovative Academy. The support from mentors, ministries, and industries together strengthens the Indonesian startup ecosystem. The experience of 8 years has taught us that the development of startups can not only be done by one entity, but this is a joint movement,” said Dr. Hargo Utomo, M.B.A, as the Director of Business Development of UGM.
Since it was launched in 2015, Innovative Academy has incubated at least 50 startups from 4,000 national applicants. Every year, applicants will go through three stages of incubation, namely pre-incubation, incubation, and acceleration, which are accompanied by more than 50 mentors from industry and government. The Demo Day 2023 event this time is a momentum for startups to strengthen their business position in the market and attract investors for the sustainability of their business. Through business pitching, each startup talent presented the background of their business and the achievements during the business run in front of mentors and investors.
“If 10 years ago there was an initiative of 1,000 startups that initiated the existence of Innovative Academy. The tagline used is also consistent, namely Innovation for the Nation. So the journey of more than 10 years of the innovation startup ecosystem has begun to take shape. We need a plan again for the future to grow,” continued Hargo. This commitment would not exist without the support of various parties, even the community itself. Whether SMEs can be strengthened to dominate the domestic market in the future will depend on a joint commitment. So far, the presence of SMEs has increasingly presented quality products and services that are able to compete.
Almost every startup starts with a concern or problem that is often complained about. Interestingly, not only positioned as a resolution to the problem, but with a combination of digital technology, Innovative Academy startups offer a reliable accessibility aspect. One of the startups, named Banana & Partners, provides integrated waste management services that have solved some of the problems of society. This business uses technology called Pandora, where every waste will be processed into biodiesel, biocharcoal, plastic composite, and other recycled plastics. Banana & Partners certainly have great potential for the future, considering that the current waste management system is not optimal.
“We all have to understand that this is a process, not instant. A long process that requires a strong commitment. So if it can be said it is like a combination of marathon and sprint. Our breath must be long, and hopefully our breath this time is long enough to realize Indonesian startups with an innovation base supported by campuses to be able to move forward,” said Hargo.