Startup investment in Indonesia tops $3B in 2017: AT Kearney research

Alessandro Gazzini, Henky Prihatna, Shekhar Chauhan, Mifza Muzayan None, Emmanuel J. Kuesar None, Astri Suhaimi / November 2017

Based on a comprehensive analysis of the venture capital (VC) landscape and a broad range of interviews with foreign and local VCs, this study seeks to understand investor outlook and priorities in Indonesia.

As the first annual report on the venture capital market in Indonesia, this study will serve as a way to reliably measure the nation’s tech investment climate and progress.

Our research includes the following key findings:

  • The startup landscape in Indonesia is still in its infancy, but it’s growing rapidly, primarily driven by the e-commerce category. Over the last five years, Indonesian startup investment has grown 68X, reaching $1.4B in 2016 and hitting $3B in just the first eight months of 2017.
  • VCs remain extremely bullish on Indonesia as an investment opportunity, given the country’s growing economy, emerging middle class, and massive population of digitally savvy young people.
  • VCs highlight four key focus areas to accelerate growth of the startup ecosystem in Indonesia: talent development, fiscal incentives, funding and exit options, and facilitation. Government can play a strong role in developing these areas, as evident from mature markets.
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