Education Technology Industry Development in Indonesia

As the use of technology increases, specific stakeholders have been adjusting their strategies and services to cater to the needs of approximately more than 614 million students. One of them is the development of the education technology sector. With the pandemic striking most countries worldwide, stakeholders were required to come up with a contingency plan in order to still effectively deliver their education to students as effectively as possible, which is where technology and education take place. 

Even after the pandemic is declared over by the World Health Organization, many students worldwide have been using online platforms to increase their learning experiences by enrolling in online courses that aren’t provided in a normal school setting. Institutions have also integrated their curriculum with the increased use of technology in order to prepare their students for the future of technology, thus providing prospects for stakeholders to develop this sector even more. 

What do you think are the opportunities for the education technology industry in Indonesia? What are the trends in the education technology sector? Read more to find out!

The Education Technology Industry in Indonesia

There are currently 52 million students in Indonesia that follow a 12-year standard education system implemented by the government. The education industry in Indonesia is enormous in size but they are also posed with challenges around infrastructure and quality human resources that have been consistently visible in the past years. 

Knowing that Indonesia is targeting to expand its digital economy, there is a certain pressure to further develop the education technology sector, as it is one of the contributors to a successful digital economy. This is also done with the help of the Indonesian government which has given extra support for the development of the education technology sector in Indonesia. According to a report done by Ravenry, Indonesian government spending has grown to approximately USD 23.6 billion just for education in 2020.

Education Technology players in Indonesia have proven the affordability, accessibility, and quality delivered in their services. For students who experience geographical and time barriers from going to formal education, technology can help them in connecting them with quality education, thus receiving the same quality of education that they can get in formal schools. This simultaneously promotes the accessibility of education for students as well. Not only students but the workforce (teachers) for education can also be simultaneously improved by the availability of education technology sectors, as it opens job opportunities.

Identifiable Trends of Indonesian EdTech Industries

According to Ravenry’s report on the Education Technology sector in Indonesia, there are several identifiable trends that can be implemented by certain stakeholders to further develop the industry. Among them include: 

  1. Online As a Prominent Discovery Model 

Massive Open Online Courses (MOOC) turned out to be one of the types of technology with the largest marketplace segments. Despite having the market saturated with other competitors like tutor centers and language learning schools, online players provide accessibility and affordability that may not be found in offline education platforms. They also provide a specific type of service that serves as a ‘niche’ for students that can’t access courses in a formal education setting 

  1. The Increasing Presence of Startups To Fill in Gaps for Digital Skills in Education

Digital skills include the ability to understand technology in a more complex manner. In a survey conducted by Microsoft, only 51% of the students in Indonesia have the opportunity to learn digital skills from school. From this concern, startups have started classroom-based platforms designed to deliver the demands of enthusiasts in coding or computer science in a formal and guided way. Thus making these courses more accessible. 

  1. Gamification and Product Development

Technologies like gamification, augmented reality, virtual reality, and mixed reality have positively impacted different industries, one of them include education. The use of these tools provides visual information that can integrate the student’s learning experience despite its remote settings. The implementation of gamification itself in Indonesia can help increase the engagement rate, thus attracting more users to enroll in online platforms for education. 

Key Takeaways

The current world and economic situation has made it possible for stakeholders to further develop education into a more accessible and affordable service for every student worldwide. This can be seen in the prominent development of the Indonesian education technology industry. Not only the current global situation but specific reasons like increasing demand for extracurricular courses and tutors, affordability and accessibility, increased job opportunities, and lifelong education as social norms have been found to be some of the growth drivers of the education technology industry in Indonesia. 

The effectiveness of these education technology platforms is also continuously improved by the implementation of product development, such as the adjustment of gamification, augmented reality, virtual reality, and mixed reality. The implementation of these technologies is some way to enhance the student’s learning experience, thus contributing to the overall engagement rate and willingness of Indonesian students to enroll in online courses. 

Despite the aforementioned benefits, Indonesia’s drive to become the country with the biggest digital economy amongst Southeast Asian countries is also one of the biggest drivers for the growth of the industry. Indonesian governments have also increased their spending on the industry, thus making more international and local players confident in developing their services in Indonesia

Enter Indonesia’s Education Technology Industry with BRIGHT Indonesia

It would take a lot of in-depth research about Indonesia’s EdTech Industry. In order to enter the Indonesian market, you would need the right local partner to assist you. 

BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.

BRIGHT Indonesia provides services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:

  1. Provide assistance for you in expanding and developing your business by identification of potential partners.
  2. Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
  3. Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
  4. Link client companies from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.