Indonesia education system remained generally the same for decades, now technology is changing that. Education technology means everything from the simple use of computers to teach educational materials, such as math, English, and reading to children in schools, it is about learning using digital technology.
With a student population of over 50 million, the opportunity is massive. The government alone has set education budget of RP. 492 trillion for 2019 and the private sector budget for education is also large. A leading edtech can easily capture a 10% market share and that would be a 5 million customer based, a large amount which may exceed the population of Singapore. With the current model of education technology as a service, this will generate a sustainable profit and income for years and decades to come. It’s a wonderful opportunity.
The opportunity sounds good, but how come edtech Indonesia is growing very slow? In newspaper President Joko Widodo and Vice-President Kalla both have mentioned that they are still looking for innovation and disruption in educational technology.
Indonesia as multiple barriers to overcome to enter the system, they are the regulator, the school, the teacher, the infrastucture (ICT) and the student. If an edtech company can solve those multiple barriers then the service may become a national success, otherwise it will stay as niche solution to education market.
There are a number of video learning companies in Indonesia such as Zenius, Quiper, Kipin Mobile and Ruangguru, the business model is based on a Khan academny, Cousera, Udemy model and similar. There are also interactive and gamification education companies such as Persona edu and Solved. There are multiple LMS companies as well who are licensed from overseas such as Cambridge, Marshall Cavendish or local development. They are all may be growing and capturing some market share in Indonesia.
Pendidikan.id is part of Mahoni group company which started back in 2007 as a technology development company who have developed hundred of applications for multi-national companies. One of the application for ebook known as BSD, BukuSekolahDigital.com which is widely used by over multiple thousand of schools in Indonesia both government and private.
The newest innovation from Pendidikan.id is KIPIN ATM 2.0 which was launched at the end of September 2018. It is a product of extensive focus group of teachers and students from various schools nationwide. Over 1 million hours of content, media and technology development has been put into KIPIN ATM since it started in 2013 to solve and overcome the barriers mentioned above. In just short 3 months since launching of KIPIN 2.0 the success is phenomenal, this is a pure lesson of creating a product with customer-centric approach, that is to put their customers first in everything we do; to make it a priority to provide an exceptional solution that suit the customers to gain a competitive edge. Its not about selling what we want to sell, but instead selling what the customer want to buy.
KIPIN ATM 2.0 achieves good success in just 3 three months, it will be exciting to see what it can do in a year. What is clear advantage to KIPIN ATM is not because of the superior content it may have, but the smooth integration of digital content, hardware and software in a stand alone kiosk that work beautifully anywhere! That is clear. Any educational content creator can actually partner with KIPIN ATM and instantly have direct access to hundred of schools in Indonesia which normally would be impossible.
Yes there is opportunities in challenges and Indonesia education system is a perfect example for it. The company that is able to localize based on the local market requirement will eventually win.
Further information about KIPIN ATM, visit kipin.id
