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Startups

Indonesia's Startup Ecosystem Dominates ASEAN with 2,651 Ventures

01 Dec, 2024
Indonesia's Startup Ecosystem Dominates ASEAN with 2,651 Ventures

Indonesia has solidified its position as a leader in the ASEAN startup ecosystem, boasting a remarkable 2,651 startups as of 2024. This milestone was highlighted by Coordinating Minister for Economic Affairs, Airlangga Hartarto, at the Gateway Conference in Jakarta. With 185.3 million internet users recorded at the start of 2024, Indonesia has leveraged its digital potential to become a regional powerhouse in innovation and entrepreneurship.

The Indonesian government has focused heavily on fostering innovation and digital integration. Initiatives such as partnerships with institutions like Apple Academy, which operates in Tangerang, Batam, and Surabaya, aim to enhance digital skills and foster innovation. Beyond startups, the government has prioritized the inclusion of micro, small, and medium enterprises (MSMEs) into the digital ecosystem, aligning with the ASEAN Digital Economy Framework Agreement (DEFA). This initiative emphasizes regional collaboration to expand the digital economy, projected to reach USD 2 trillion by 2030.

Airlangga noted that Indonesia contributes 40% of ASEAN's digital economy, a dominance driven by thriving sectors like e-commerce, logistics, travel, and digital payment systems. These sectors have experienced annual growth rates of 16–18%. Moreover, the country has integrated its payment systems with other ASEAN nations using QR Code technology, streamlining cross-border transactions.

Infrastructure development has been pivotal in this digital expansion. Projects like the Palapa Ring fiber optic network, SATRIA satellite deployment, and upcoming Low Earth Orbit satellite systems aim to address connectivity gaps, especially in remote areas. These efforts are crucial for supporting the country’s digital economy growth, which is expected to quadruple by 2030, reaching up to USD 360 billion.

Indonesia's thriving startup ecosystem is further bolstered by the presence of 15 unicorns and 2 decacorns, reflecting significant venture capital interest in the region. The government's continued focus on innovation, infrastructure, and policy reforms is paving the way for sustainable growth in the digital sector, securing Indonesia's position as a leader in ASEAN’s economic future.

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