The Startup Ecosystem of Indonesia

Indonesia has the largest market size in Southeast Asia and has a young, talented, internet savvy workforce. As one of the most populous countries in the world, Indonesia enjoys the rare advantage of creating massive startups and unicorns that can focus on the low hanging fruit of serving its own domestic economy.
In recent years, improving the country’s connectivity has been a focal point for the public sector. For the startup landscape, this translated into additional government support for tech and IT startups. One example is the government-run accelerator Startup Studio Indonesia that aims to empower the startup ecosystem and digital industry in the country. In addition, efforts have been made to attract investment, reduce the regulatory barriers for establishing a business, and tackle bureaucratic challenges. Supported by these initiatives, Indonesia has become a leader in Southeast Asia for tech investment. Success stories such as J&T Express, Ovo, and Traveloka are more and more common with startups racing to achieve unicorn status. Jakarta is the key startup hub in Indonesia, hosting the aforementioned unicorns, and boasts a high level of entrepreneurial activity as the capital city.
Growth in digital infrastructure, partly accelerated by the COVID-19 pandemic, can be a huge gain for Indonesia’s startup ecosystems. Cities on the Island of Bali have long been attractive to digital nomads. Now, with the digital nomad visa and better internet connectivity, foreign talent may finally have the opportunity to establish their businesses and form startup hubs in Indonesia.