Proposed Digital Startup Policy Model For Accelerating Indonesia’s Digital Startup Success Rate

Sudaryana, Sonny Hendra (2025) Proposed Digital Startup Policy Model For Accelerating Indonesia’s Digital Startup Success Rate. Doctoral thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

Indonesia's government is focused on accelerating the digital economy to achieve Indonesia Emas 2045, aiming to boost its GDP contribution from 4% in 2023 to 19% by 2045. The uniqueness of Indonesia’s digital economy lies in the significant role of digital startups, thus, making success in this sector is crucial. Therefore, the Indonesian government has promoted digital startup development through various regulations and policies. Despite a significant increase in startups, the success rate remains low, at only 1% to 5%. This research made two key assumptions: first, the low success rate suggests existing government policies may be ineffective, as they focus on increasing new startups without addressing the "valley of death" (VoD). Second, it assumed that digital startup development stages and VoD are highly contextual, meaning policies should be tailored to Indonesia's specific needs. Moreover, this research used a mixed-method approach in sequential setting with three different studies for triangulation and consistency, guided by design thinking. The first, a descriptive study (inspiration module), developed a conceptual framework and mapped existing policies through a literature review and qualitative interviews. The second, an explorative study (ideation module), examined digital startup stages and the valley of death in Indonesia, using grounded theory. The third, a confirmatory study (implementation module), developed a policy model and strategic implementation through SEM-PLS quantitative analysis. The descriptive study found that government policies focused mainly on the seed stage and micro-level policies aimed at developing individual skills, supporting key assumption 1. The exploratory study identified six ) digital startup stages (Ideation Stage, Pre-Seed Stage, Seed Stage, Launch / Growth Stage, Maturity / Establishment Stage, and Exit Strategy Stage) in Indonesia and two valleys of death: one at the pre-seed stage (minimum viable product) and another at the maturity stage (product-market fit). Finally, SEM-PLS analysis revealed that the most crucial policy for improving digital startup success is reforming regulations and governance, emphasizing the need for comprehensive policies throughout the entire ecosystem. Keywords: digital economy, development stages, digital startup success rate, policy model, the valley of death

Item Type:	Thesis (Doctoral)
Uncontrolled Keywords:	digital economy, development stages, digital startup success rate, policy model, the valley of death
Subjects:	T Technology > T Technology (General) > T58.6 Management information systems
Divisions:	Interdisciplinary School of Management and Technology (SIMT) > 66105-Doctor of Technology Management (DMT)
Depositing User:	Sonny hendra sudaryana
Date Deposited:	10 Feb 2025 05:30
Last Modified:	10 Feb 2025 05:30
URI:	http://repository.its.ac.id/id/eprint/118589

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