1 Chapter I Introduction I.1 Background Education is divided into three categories; formal, non-formal, and informal education. According to UNESCO (2012), formal education is an organized education system given by schools, college, and universities that adheres to a curriculum and leads to recognized certificates. Non-formal education, on the other hand, occurs outside of the official school system yet maintains an ordered and deliberate learning framework. Vocational training, adult literacy programs, and language classes are among the topics covered. Finally, informal education is a lifetime learning process that unfolds organically through daily experiences, social interaction, and exposure to knowledge, rather than following a set of framework or curriculum. Non-formal education has regained global attention in both Western and developing countries and is becoming increasingly relevant. Looking back in history, non-formal education was back on the agenda before 2000 and into the early 2000s. Rogers (2004) mentioned in his book that the Parliamentary Assembly of the European Council in 1999 acknowledged that formal education alone could not meet the challenge of modern society. The Assembly then recommended that governments and appropriate authorities regard non-formal education as a de facto partner in lifelong learning and make it accessible to all. The non-formal education industry itself serves its own challenges and opportunities. Some perceive this sector as being saturated, with many players in the market compete between one and another vying for market share within the same demographic group. However, the newer and recent shift in the way students learn after pandemic has affected the industry and created endless opportunity for some others who can find the gap and able to invent new innovation. An influx of Ed-tech business in Indonesia is just a small sample of how the global trend in this industry has rapidly, if not slowly, shifted to a completely different model. The Ed-tech tools are changing classrooms in a lot of ways, 2 definitely present a contrast approach compared to the traditional face-to-face teacher-centered interactions. The sudden increase in Ed-tech solutions and business shows how dynamic the industry is and how far the business operations has altered. It then raises question about the longevity of these trends and how the future landscape of the non-formal education industry will be shaped. With ongoing technology advancement, the industry’s future shape is still uncertain. Therefore, identifying potential challenges and opportunities become crucial for both existing players and new entrants. Not only that the Ed-tech solutions have altered the business’s trend, the rise of social media has also changed the way people learn new language. For instance, English exposure in Indonesia was limited in the past time, not many Indonesians spoke the language fluently. Yet now, free access to English content on the internet and social media has enabled young learners to acquire their second language quickly and easily (Carrión et al., 2022). This shift raises another question of whether the English course business will still be relevant in the future. As we all know, the demand for English classes remains high at present. However, for new entrepreneurs aiming to establish a business in this sector, there will be a question about which languages might offer promising opportunities. I.2 Industry Profile The non-formal foreign language education industry in Indonesia, particularly in Jabodetabek area, has experienced significant growth and transformation over the past decades. This sector includes various forms of education that fall outside the realm of formal schooling, including language courses offered by private institutions, online platforms, tutoring centers, private tutors, and educational technology or Ed-tech solutions. This sector is also characterized by a variety of players (see Figure I.1). Traditional language schools, such as EF English First and Wall Street English, have long been established in the market, offering structured programs and curriculum with face-to-face interactions. Alongside these are 3 the Ed-tech platforms that started to emerge in the market around ten years ago. Ruangguru, Zenius, and Quipper are some of the big players in the market, which have revolutionized the industry by providing online learning solutions. These platforms offer modern, flexible, and innovative methods, with video tutorials, interactive quizzes, and gamified learning experience. In addition to these are private tutors, many of whom work as freelancers, contribute significantly to the market by offering more flexible language lessons with competitive rate. Figure I.1. Traditional language school, online learning and private tutor (source: ef.co.id, vibe.us, tutormeeducation.com) The integration of technology has been a major driver of change within the industry. The rapid increase in smartphones use and distribution, combined with wide spread internet access, has made online learning more accessible than ever before.