The uproar of artificial intelligenceÂ
Artificial intelligence is being uproar to talk by citizens for various sectors. Many countries including Indonesia have adopted artificial intelligence to assist their activity easier. This intrigued many people to get into the competition for artificial intelligence, called the "startup trend."
A lot of startups in Indonesia have been competitive to take a part of the technology growth. Many entrepreneurs created the startup in this wave. Through this issue it can allow the job seeker getting the occupation. But this issue will be the backlash if the entrepreneurs run their business recklessly it can end by the failure even the lay off and the startup company will lose their investor. The entrepreneur must consider thoroughly all the aspect to run the startup business. It can be assumed that the trend of artificial intelligence can give the advantages and disadvantages.
The example of startup companies in Indonesia are akulaku (2016), koinworks (2015), uangme (2018), kata.ai (2015), verihub (2019). Nowadays, there are 74 startups in Indonesia focused on AI development. Among them are Nodeflux.
The increase in startup companies in Indonesia
More than 200 startups in Indonesia raised at least a million dollars in funding by the beginning of 2022. Moreover, Indonesia's foreign direct investments (FDIs) increased significantly, jumping from 3.92 billion U.S. dollars in 2016 to 20 billion U.S. dollars in 2021. This report was intrigued the startup trend in Indonesia. Furthermore, this issue was supported by the government through Gerakan Nasional 1000 Startup Digital, Startup Studio Indonesia, and HUB.ID to facilitate the entrepreneurs of early-stage startups develop their prototypes and reach product market readiness.
According to the figure above, there are huge numbers of startup companies around the world. Indonesia is at number 5 rank following by Germany, Australia, France, Spain, and Brazil. America is the biggest number of startup companies.
The financial aid from investors to startup companies in Indonesia
Kata.ai is one of the startup company in Indonesia. This company provides the chatbot for communication. This startup company claimed that they got the financial aid was about 46.5 billion US dollar. They utilized this aid to expand research and development. Following by Dana gained $225.000.000, akulaku $100.000.000, modalku $144.000.000, sayurbox $120.000.000, koinworks $43.000.000 in 2022.
According to the figure above, there are various numbers of the financial aid in startups company in Indonesia. The first position is Dana with 450 million US dollar following by Traveloka with 450 million US dollar, Xendit with 300 million US dollar, modalku with 144 million US dollar, sayurbox with 120 million US dollar, Pintu with 113 million US dollar, and Akulaku with 100 million US dollar.
The nightmare of startup companies among the startup trend in IndonesiaÂ
 Among the increase of startup trends in Indonesia must be attention for the entrepreneur. In case, the startup company will face a lot of problem in running their business that can address them to shut down their company. There are many aspects that the entrepreneur must consider to run their business. Currently, many startup companies in Indonesia closed their company such as Airyrooms, Fabelio, JD,id, Sorabel, Stoqo, Qlapa, CoHive, and Beres.id. This issue caused the huge laying off and increased the number unemployment in Indonesia. The failure of the startup companies is because they are not able to keep many aspects in running the startup business. There are bad management, inappropriate price, lack of fund, lack of knowledge of market need, failure in competition, the increase of interest rate, and high expectation from the investor.
Other reasons of the startup companies decide to close are like Solyndra, this company was failed in the competition with the China company Suntech Power Holding Co Ltd and the US company First Solar. Next, Jawbone. This company has been 17 years old with the fund US$29,9 million.
Lost investor and shut down the company
Many startup companies in Indonesia decide to close their business because of some reasons. One of the reason is they lose their investor. The investor is an essential aspect for running the business, particularly startup companies. The investors have the criteria to put their money into the companies, they must consider carefully to take the best profit.
In November 2018, Indonesia startup companies got a nightmare. There were 158 startup companies stopped running their business since the fund is gone and there were no anymore the financial aid from the investors. Many investors withdraw their investment or even was discontinued their investment into the startup companies.
One of the startup companies who lose their investors is Alta motors. This company produced sophisticated electric motor cycle in the world. Alta motors get the financial aid by the popular investor such Harley-Davidson, Motor company, Grassy Creek Ventures, Grassy Creek Ventures, Bob Fox, Mountain Nazca, Cedarville Investments, Modara Technologies, and Marc Tarpenning. Unfortunately, Alta motors stopped their business due to they got the matter togain the financial aid to continue running their business after many agreement and investment was failed.
Another reason why startup shut down their business is incompetent management, for more detailed by low financial system, inadequacy hiring decision, poor competitor analysis, and poor quality control. The startup company must be able to run their business with appropriately. The management not only being focus to get the profit but also they must consider the other aspect such as the employee, facilitation, and work balance.
How come incompetent management can contribute the failure of the startup companies?
Running the startup companies need a supportive and solid team, and a supportive and solid team can be gained through good culture. As simple thing management can do are taking a part in the employee skill growth like facilitating the training, give the appreciation, and making a good relationships also how the management can give the work balance to them. If the management has the paradigm that it will be a piece of cake to hire someone if another one wants to leave, it will be avoidable that it will be a backlash in the future, because the employees don't quit the occupation, but they only leave the company. In other words, the company will lose the precious one. This can happen only if the employees quit because of the management give a lot of pressure and doesn't have good work balance. The management should consider the employees' opinions, take a decision with full of consideration, and logically not based on instinct.
In conclusion, the startup industry is being popular nowadays. Artificial intelligence startup trends are unavoidable. Startup companies were increased in short. This trend contributes the advantages and disadvantages. The increase of startup companies can expand the vacancy. On the other hand, if the startup companies can not stand to run their business it will cause the laying off to the employee and automatically the number of unemployment will increase. Furthermore, startup companies must take a lesson of the issue of the startup companies that stop their business therefore they can compete with other companies and stand running their business, with hope that startup trend in Indonesia will not be an ultimate attack to Indonesia.
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