Indonesian EdTech Getting More Recognition as the Government Announced The Services

As the world restricted any movement due to the new coronavirus, EdTech which has been rising in recent years is now gaining more recognition. EdTech is a term that combines Education and Technology and is the area where technology is causing innovation in education.

In Japan as well, services such as prep schools and cram schools are now available online. Even now it is possible to study various subjects such as language, technology, and marketing at the online courses available at Udemy, Study Supply English, Schoo, etc. DX Navigator shows the rise of EdTech in the US and China.

According to the research firm Equal Ocean, EdTech in the United States is rapidly growing especially in higher education and education for adults and workers, while in China the market demanded online courses for children from kindergarten to high school or often called the K-12 in China. As much as 39% of EdTech investment in the US in 2019 is concentrated in eight major companies, such as Guild Education, BetterUp, Coursera, Andela, Degreed, MindTickle, EdCast, and A Cloud Guru. All of these are targeted at working people, with a focus on work efficiency and expert training*2.

In Indonesia, the demographic bonus continues, and it is said that it will continue until 2045 or 2050. Of course, EdTech is not limited to children, but it can be said that the growing population has great potential. The World Bank cites that this great potential comes with bottlenecks problems.

The bottleneck on the service providers side includes the following things:

  1. Financing
  2. Costs for acquiring new customers
  3. Lack of human resources for service development and maintenance

 The bottleneck on the user side includes the following things:

  1. Willingness for schools and parents to pay for billing services
  2. Lack of digital literacy on the educational service provider
  3. Lack of infrastructure (local environment, network speed)

Meanwhile, as one of the measures to fight against the new coronavirus, the Indonesian government announced the appointment of online education service. In April, President Joko Widodo announced the following companies as government partners in providing online education services.

  1. Ruang Guru,
  2. Zenius
  3. Google
  4. Microsoft
  5. Quipper
  6. Sekolahmu
  7. Kelas Pintar

Quipper is an online learning app launched by a Japanese in the UK and is a subsidiary of Recruit Marketing Partners Co., Ltd. The big news is that the Quipper Japanese was appointed by the president.

From last year, we will welcome Gojek founder Nadiem Makarim as Minister of Education and Culture to further accelerate education innovation in Indonesia.