With its gadgets, flashy offices, and optimism about a digital future, few economic issues draw politicians’ attention like technology innovation and e-commerce. World leaders invariably look to Silicon Valley and its tech titans to try and learn the secret sauce of what makes it work, and Indonesian President Joko Widodo is no different. Unfortunately, he has overlooked Silicon Valley’s key features—competition and openness—and is instead re-hashing failed protectionist policies of the past as part of his agenda to build up Indonesia’s e-commerce and high-tech sectors. A prime example is the Indonesian government’s decision last year to introduce local content requirements for smart phones and compulsory data localization policies. These regressive policies earned Indonesia inclusion on ITIF's list of the worst innovation mercantilist policies of 2015, writes Nigel Cory in the Jakarta Globe.
