Analysis of Three Actors : Roles of Government , Private Sector , and University toward Startup Growth in Yogyakarta

Information, communication, and technology advancements in 21 st century encourage startups to innovate and develop their business further. Because it’s an ICT based business which is supported by the existence of internet, this kind of business starts to become borderless. As a result, the distributions of the products start to become unlimited. The conveniences offered by these advancements invite more ICT based product developers. The positive impact as a result of that such as more new jobs, easier way to access the markets, and also cheaper production cost with guaranteed profits. In addition to that, this of course also becomes an added value to the country because it increases Network Readiness Index and nation’s income from taxes. This research aims to analyze startup’s growth, in addition to its relation with related actors such as government, private sectors, and universities. Analysis on every actor will emphasize on their contribution to startup developments in Daerah Istimewa Yogyakarta directly or indirectly. In conclusion, there will be an illustration about how big the contributions and how close the actors are between startups and the three actors.


INTRODUCTION
One of many factors that led to the increas-ing number of world internet users is because the government's role started to realize the importance of internet access for the country economy development.Utilization of technological and information advances mainly on internet directly or not helps to develop a country's economy.Vodavone findings in Andjelkovic (2010) mention that for every 1% internet penetration in a region or country, there is a chance for the Gross Domestic Product (GDP) to increase for about 0.5% up to 0.6%. in addition, a report from the World Bank's Information and Communication for Development 2009 in Andjelkovic (2010), any 10% increase of broadband service will have an impact on the economic growth for as much as 1.3%.Because of that, the government tends to ease and simplify the internet access in their country.
In addition of easier and cheaper, the development of internet users is also supported by utility factor offered by the innovative application developers.Many applications which can be accessed via the internet are associated with social media and communication, information media, e-commerce, etc. Instagram, application which serves to share our photos or videos, is one of many successful applications with a lot of users.Instagram access throughout the world can be said quite enough with a fact that 717 photos are being uploaded every second.Another example is Google which reached 53.805 searches conducted every second, Skype with 2.093 active calls every second, and 2.482.357emails sent for every second.
In Indonesia, the growth of application de- New capitalism itself emerged after a rapid development of ICT.ICT Growth has also changed the economic system.As we know, many entrepreneurs have been creating creative business using internet to sell their products.Internet is also one of ICT's componens that will be a main discussion in this paper.
New capitalism tries to win evolution of entrepreneurs who success in creating an innovative product in technology innovation.ICT usage impact in a country can also be seen from the social impact.This also means how far ICT in a country can help to solve social problems in a community.In Indonesia itself, the social impact of ICT has been providing a good contribution.This has been proven from the social impact subindex value that the last 4 years tend to increase from 2012 at 3.71 increases in 2015 to 4.1.

Creative Industry
Based on Zumar (2008), creative economy or commonly known as creative industry is an industry that is derived from the utilization of creativity, skills, and talent of and individual people to create wealth and jobs by generating and exploiting creativity and inventiveness of the individual.
Creative industries in Indonesia started This amount exceeded the contribution of electricity, gas, and water supply sectors.In ad- Application developers are often found to develop their application from zero till thousands or even millions of people favourite their apps.
Let's take a prime example from Facebook, an international social media with millions of users.
The early stage of Facebook started around 2003 when Mark Zuckerberk, its founder, starts to interact with ICT world and create Facemash.com.
The site aims to assess the beauty of people in it.Yogyakarta, should be able to be optimized in order to boost employment and economy growth in this area.Sadly, the government seems haven't put maximum effort and attention in this field while the private sectors seem to be more inclined to put more attention in this field.This

Gamatechno
Gamatechno is a company focused on the field of ICT, including software, hardware, consulting, and training on IT.This company can be said as one of the successful actor to support the development of digitalpreneur in Yogyakarta.
Not only as an actor, Gamatechno also classified as digitalpreneur.From the analysis of both cases in the dis- Information, communication, and technology which will be identified as ICT, has entered a new stage.Not only being used as a tool for information and communication, ICT has a very significance role in development and economy.Internet itself plays a determinant factor in ICT advancenment.At first the internet was known as ARPANET which in 1970s used for long distance communication and now we know it as email.Internet development is becoming more visible in 1990s when the World Wide Web (WWW) was discovered.Not only able to connect to a lot of tools at global level, it can also be used as a search engine on the internet.A few years later in 1998, Larry Page and Sergey Brin found Google.Entering year 2000, many of application developer started to create an innovative application in a form of social media such as Facebook, Twitter, etc.Many of application developers who use the internet in the end push the number of internet users.Figure 1 illustrates the number of internet users at global level starting from 2012 until 2016.The increasing number of internet users from 2013 to 2014 was lower than the increasing number of internet user in 2012 to 2013.In 2012 until 2013, the increasing users reached 234 billion people per year, while in the next year the number of users decline to 228 billion people per year.Even so, in 2014 until 2016 the number of internet users steadily increase up to 239 billion people per year in 2015 to early 2016.

Figure 1 .
Figure 1.Percentage of internet users in the world (in billion) Source: Internet Live Stats (Data Elaboration of International Telecommunication Union (ITU) and United Nations Statistics Division (UNSD)

Figure 3 .
Figure 3. Network Readiness Index in ASEAN Source: Global Technology and Information Report, 2014 research will have a focus in startup development with its interaction with government, private sector, and university as the three main actors in Yogyakarta.How are the development of startups in Yogyakarta, and their pattern of relationship with relevant actors?a.How are the government roles towards startup's growth in Yogyakarta? b.How are the private sectors roles towards startup's growth in Yogyakarta? c.How are the university roles towards startup's growth in Yogyakarta?RESEARCH METHODS This research adopts a qualitative approach with interview as the primary mean to collect datas and study of literature as the secondary mean to collect the datas.The interview instruments that is being used developed based on the research theme and also from study of literature.The research then takes up its subjects who include individuals, groups, private organizations, and government instantion in Daerah Istimewa Yogyakarta.The units of analysis used in our research are in the form of startup and actors who have interrelation in startup's growth with the description as follows: (1) Owner of CallJack (individual); (2) Creacle Studio (Kelompok); (3already started since United States of America established Sillicon Valley which obtain a lot of succsessful digital entrepreneur, for example Yahoo and Google.Startup's development between Yogyakarta and America has some differences on some issues such as the development of startup in America which was supported by government unlike in Yogyakarta where digitalpreneur evolved independently without any attention or intervention from the goverment.After a long period without any intervention, in 2010 government of Yogyakarta, through Depertment of Industrial, Trade and Cooperative (Dinas Perindustrian, Perdagangan dan Koperasi) took their first step to give more attention in startup area by establishing startup association named Jogja IT.This association aimed to facilitate and accommodate startups in Yogyakarta.The startup developer or "startuper" could gain new information and knowledge from another developer so they were expected to get a new insight to make more innovative products.However, Jogja IT did not exist for a long time due to the lack of local government knowledge about digitalpreneur.Government could not give services good enough for the Cinintya Audori Fathin, Ashilly Achidsti, Dimas Indra Priambodo -Analysis of Three Actors: Roles, .....Copyright © 2016, JKAP, p-ISSN 0852-9213, e-ISSN 2477-4693 member of Jogja IT which already reached 200 members.After Jogja IT disbanded, the government tried to develop another association called Jogja Creative.The purpose of this association did not have any different from Jogja IT, but this is aimed for only startup who work out in multimedia and animation field.Same as Jogja IT, Jogja creative could not survive for a long time because of the same reason.Secondly, government's lack of knowledge about digitalpreneur brought negative effect.The lack of knowledge from the government about the development of startups of course can obstruct creation of new jobs.As what has been explained before, startup's income can not be considered little because it can also contribute to nation economic growth.For an example, in Ireland, there is an organization named #StartupIreland which is a non profit organization that connect startup communities in the country.They believe that high tech companies in Ireland can bring this nation into high value employment and wealth.When the developmental strategy for startups is successful, there will be a good ecosystem to create "virtuous circle" wehere thousands of successful entrepreneur can re-invest their wealth to the new generation of startups that will in addition create new wealth and distribute it through the worker's investation or paid taxes.The important things for startup development is not only about the space for interaction and knowledge transfers, but startup need more support from the infrastructures such as availability of adequate internet broadband and protec-tion policies for local startup so they could compete with international product.There are three things of Government action for startup development in a country according to the G-20 Young Entrepreneurs' Alliance (2013), first is that the government provide support by make a relevant policy and real action; second, governments support the develompent of startup but the policies and actions taken by the government are not relevant to what is required by digital entrepreneur; and the last government does not intervene on digitalpreneurs developments in the country.The deficient of facilities and infrastructures that support the development of startup provided by the government, startup developers in Yogyakarta prefer shaded by private organization.One of private organization who accommodates and develops startup in Yogyakarta is Jogja DIY Digital Valley (JDV).Jogja Digital Valley Digital businesses that could grow and survive in the dynamics of technological sophistication is digitalpreneur with business based on Open the Top (OTT) like Yahoo, Google and Facebook.These types of digital business ensure the sustainability of business than digitalpreneur who work in project base.When digitalpreneur work by project and provide it to a big company, the sustainabillity of their business are not secured.Meanwhile, the mindset of digital -based company in Indonesia (not multinational company) still on the project way.That mindset should be changed by setting up an incubator that could create good ecosystem for startup's development JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20,No 1 May 2016 ----http://journal.ugm.ac.id/jkapCopyright © 2016, JKAP, p-ISSN 0852-9213, e-ISSN 2477-4693 with OTT based business.Establishment of an incubator requires substantial funds.Therefore, PT Telkom as State -owned Entreprises (Badan Usaha Milik Negara/ BUMN) starts forming digital incubation in Bandung and Yogyakarta.In Yogyakarta it is known as the incubation Jogja Digital Valley.Jogja Digital Valley was established in Yogyakarta because Telkom saw the opportunities youth massiveness here in mastering and doing activities in digital world.These companies then carry out the startup digitalpreneur especially with two major programs: business incubation and holding space.The incubation program is the selection made by Telkom to filter digitalpreneur who compete with another so they could affiliate as a team and will be supported, facilitated, and given curriculum with mentor system.The criterias to be included in this team is digitalpreneur have to create a product that is in accordance with the vision of PT Telkom and the product have also able to provide solutions for social problems in Yogyakarta.Holding space is a program where digital business developer gets the facility of Jogja Digital Valley by registering themselves to JDV.Facilities that are given by JDV are physical facility for working called coworking space.In this working space, members could use the meeting room, locker, and informal discussion space like canteen which has designed particularly for digitalpreneur.The different thing between incubator and holding space is, the incubator using mentor to help digitalpreneur develop their skill and analyze what kind of product that appropriate with the market's de-mands.However, holding space still has to try to find a way to develop their own business independently.The positive thing become member of JDV, digitalpreneur non incubator also have opportunity to understand how digital business work by discuss with digitalpreneur in incubator and the expert people in JDV.To reach a wider target, JDV also organize workshops, seminars and regular discussion.According to Permadi (2015), this discussion reffered to #TechTalk, which discuss about various thing that have a connection with digitalpreneur such as application maker, games developer, and coding.#TechTalk is always uploaded in JDV's youtube channel and invite the expert person in digital word to share their knowledge and experience to sharpen the skill of JDV members.
neur is an entrepreneur who uses technology as a way to increase production and company's profit.Startup is one of digitalpreneur form that will be discussed in the next theory.stillalso able to create products to solve society's problems.Andjelkovic (2010) argues that incubators in developing countries will inevitably encounter many hardships such as infrastruc- Cinintya Audori Fathin, Ashilly Achidsti, Dimas Indra Priambodo -Analysis of Three Actors: Roles, .....
digital based government is still can not be seen clearly and this is where Gamatechno tried to enter.Gamatechno has been trying to develop cooperation with the government by proposing a masterplan and e -government supportive applications and smart city optimalization.However, the government didn't give a good enough response towards the Gamatechno's proposal, and with that the realization of smart city in Yogyakarta still can not be an agenda setting.This faildents of University Gadjah Mada.At first, five of them were joined in a group who often joined projects and competition until they decided to cussion, the government's role in startup growth is very little even though successful startups open up jobs and support the local economy growth.The government's role was only limited to creating a container for startupers to gather with no further sustainable actions.Startups' growth in Yogyakarta is more dominated by the JDV which not only facilitate a place to gather but also is an incubator and a place to learn informally as well.Universities has a big role in providing quality human resources which able to create a startups and develop it further.Although, university's role which more sustainable and tend to develop startup is still not visible, especially in Creacle Studio's case.Gamatechno, as a private sector has a relationship which is close at the effort of developing startups to keep creating innovative products that can be used in solving social problems.