Indonesia’s technology sector has long been a symbol of innovation and rapid growth, from ride-hailing platforms to digital banking and e-commerce. Yet, the recent Chromebook procurement scandal—where former education minister and Gojek co-founder Nadiem Makarim was detained in connection with alleged irregularities in a Rp9.9 trillion (US$602 million) laptop procurement project—has underscored a different reality. Beyond the political headlines, the case sheds light on the urgent need for corporate governance and compliance in Indonesia’s tech ecosystem.

For startups and established players alike, the incident serves as a wake-up call: rapid growth and strong valuations are not enough to build sustainable businesses. Strong governance and transparent business practices are increasingly critical for maintaining investor confidence, securing government contracts, and protecting long-term brand reputation.

Why Corporate Governance Matters in Indonesia’s Tech Landscape

Corporate governance is not a new concept, but in Indonesia’s booming tech sector, it has often taken a back seat to aggressive expansion. Many fast-growing companies prioritize market share, user acquisition, and fundraising over building compliance frameworks.

The Chromebook scandal reveals the risks of that imbalance. Whether or not companies are directly implicated, the broader industry now faces heightened scrutiny. Deals involving government procurement—particularly in sensitive areas such as education, healthcare, and digital infrastructure—will attract more oversight from regulators, auditors, and the public.

For tech firms, this means governance is no longer optional. Investors, especially global venture capital funds and institutional backers, are increasingly demanding robust compliance structures before committing capital.

Key Compliance Challenges for Tech Companies

Several challenges make compliance in Indonesia’s tech industry particularly complex:

1. B2G Contracts Require Transparency
2. Business-to-government (B2G) deals, such as supplying laptops or cloud services for schools, involve large sums and multiple stakeholders. Without transparent procurement processes and clear audit trails, companies expose themselves to accusations of favoritism or worse, corruption.
3. Founders Wearing Multiple Hats
4. When founders transition into policymaking or advisory roles, conflicts of interest can emerge. Even perceived conflicts can erode trust among investors and consumers. The Chromebook case highlights how blurred lines between private sector leadership and public office can backfire.
5. Regulatory Complexity
6. Indonesia’s regulatory landscape is evolving quickly, particularly in sectors like fintech, healthtech, and edtech. Companies that fail to stay ahead of compliance updates—such as data protection rules or public procurement standards—risk costly penalties.
7. Pressure to Deliver Growth
8. Startups under pressure to meet ambitious growth targets may cut corners on compliance. But as the scandal shows, reputational damage from governance failures can destroy years of progress.

Best Practices to Strengthen Governance in Tech Firms

To address these challenges, Indonesia’s tech companies must embed governance into their DNA rather than treating it as a box-ticking exercise. Some best practices include:

• Independent Oversight: Establishing independent boards or audit committees can provide impartial oversight and reduce risks of conflicts of interest.
• Transparent Reporting: Regular disclosures on procurement, partnerships, and financial performance can enhance trust with regulators, investors, and customers.
• Compliance Culture: Training employees on anti-bribery, procurement ethics, and whistleblower protection helps create a culture of accountability.
• Technology for Compliance: Using digital audit trails, AI-powered fraud detection, and blockchain-based procurement systems can ensure transparency in transactions.

Companies that invest early in these measures not only reduce risks but also gain competitive advantages. Global investors and corporate partners are more likely to favor firms with strong governance frameworks.

Investor and Market Implications

The Chromebook scandal comes at a time when Indonesia’s tech ecosystem is maturing. GoTo, Traveloka, and other unicorns are no longer just startups; they are publicly listed companies or preparing for IPOs. For listed firms, poor governance can translate directly into stock market volatility and capital flight.

International investors are particularly sensitive to governance risks. According to the OECD, countries with weaker corporate governance often face higher capital costs. For Indonesia’s tech firms seeking to attract long-term investment, demonstrating governance excellence could be as important as showing strong user growth.

The Chromebook procurement scandal is not just a political story—it is a governance lesson for Indonesia’s technology sector. As the country continues to position itself as Southeast Asia’s digital hub, tech companies must recognize that compliance, transparency, and accountability are as vital as innovation and growth.

Corporate governance may not make headlines as flashy as billion-dollar valuations, but it is the foundation that ensures those valuations are sustainable. For Indonesia’s tech ecosystem to thrive globally, governance needs to move from the periphery to the core of business strategy.