Formulate software house incentive plan

Policies Involved

Government Regulation on Incentives for Software Houses


There is no tech bootcamp program shortage in Jakarta. However, these programs tend to focus on basic level skills and seldom equip students with practical working experience. As such, there is a huge pool of beginner-level fresh graduates but a very limited pool of highly-skilled tech talent. This creates a formidable challenge for startups seeking to hire specialized workers for niche positions in the face of budget or time constraints.

Current Policy

Most of the policies and programs concerned with tech talent shortage have largely focused on addressing the problem through education and training. For example, the Digital Talent Scholarship outlined in the Minister of Communications and Informatics Regulation No. 2 of 2021 on the Strategic Plan 2020-2024 was created to provide potential students from various educational backgrounds with scholarships to attend technology competency programs. Meanwhile, there has been little mention of support for software development outsourcing companies (also known as software houses), which can help startups execute temporary projects faster at an affordable cost.


Handing off short-term and time-sensitive tech projects to software houses can help technology startups quickly access pipelines of a pre-vetted, skilled workforce. A policy that seeks to increase the quantity and quality of software houses can support them by providing tax breaks and easing the requirements and paperwork involved in setting up the corporation. Furthermore, providing incentives to software houses who hire and train technology competency program graduates can empower them to absorb and train fresh tech talent, and contribute to job creation in the technology sector.

action points
parties involved
Ease the requirements and paperwork for the establishment of legal entity
Ministry of Law and Human Rights 
Ministry of Communications and Informatics 
Ministry of Investment (OSS)
Provide tax breaks for new and existing software houses
Ministry of Communications and Informatics 
Ministry of Finance 
Incentivize software houses to hire and train technology competency program graduates
Ministry of Communications and Informatics 
Ministry of Finance 
Ministry of Manpower
Technology competency programs 

Indicator of Success

Number of new software houses
Average number of years a software house is in operation
Number of fresh graduates absorbed by software houses

    For many entrepreneurs, the decision to turn into innovations depends on the ease to adopt technology, trained workforces, and multiple sources of finance. Yet, navigating the complex regulation is a major challenge for most lay business people. To expedite the economic recovery post-pandemic recession, the stakeholders in the ecosystem are urged to formulate the right policy to simplify such challenges.

    — Kariem El-Ali, Senior Policy Advisor