Indonesia, with its vibrant startup scene
— the finest in Southeast Asia — remains an untapped reservoir of talent
Why Indonesia?
Exploring the Strengths of Indonesia
Indonesia has a massive population of over 270 million with a digital economy that is growing quickly. It currently has close to 80% mobile penetration and has become an economic driver in ASEAN and Southeast Asia. With a population that is approaching productive ages in the next 10 -20 years, the majority of its workforce will be digital natives, led by Generation Z and supported by a mature Millennial generation.
Indonesia is now an untapped talent pool, especially in the ICT (Information and Communication Technology) market.
These are some of the positive drivers of its talent pool:
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The expected double-digit growth rate in the ICT market in Indonesia
The Indonesia ICT market which was valued at US$ 36.90 billion in 2022 is expected to grow at a compounded annual growth rate (CAGR) of 17.09%, reaching a value of US$ 81.21 billion by 2027. The country’s top three product/service categories in 2024 are IoT Hardware, SaaS, and Systems Design and Integration. IoT Hardware is expected to be the leading ICT product/service segment in Indonesia in the next few years. The growth in the ICT market will continue to foster and promote the development of high-quality talents.
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Indonesia's startup ecosystem is well-developed
At the end of 2023, there were 2,300 Indoensian startups with 9 of them unicorns and 2 decacorn (valued at US$10b or more) startup. The top 3 in January 2024 are J & T Express, Traveloka, and Akulaku. There is large support of VC firms (around 50) in Indonesia. As of November 2023, venture capital disbursements in Indonesia amounted to Rp 17.39 trillion. The Indonesian Venture Capital and Startup Association (Amvesindo) expects venture capital funding to reach of Rp 20 trillion ($1.27 billion) in 2024. These VC firms are not only investing in the startup ecosystem, but also actively identifying and investing in the best founders and projects. These VCs’ funding and activities in Indonesia will continue to attract and retain the best talent to the industry.
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The support of the Indonesian government
The Indonesian government supports the startup industry by launching initiatives to assist entrepreneurs, such as the Startup Incubator Program. Government grants and support schemes are available to assist new businesses as well.
These are five of the interesting Tech Trends to Watch in Indonesia in 2024 (by Trade Representative of the Russian Federation in Indonesia):
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Increased Development and Use of Artificial Intelligence
This is in both business and personal use, including the Indonesian government’s work on creating its own language model to guide future developments. -
5G and Enhanced Internet Speed
This includes the government’s commitment to supporting the implementation of 5G telecommunications network technology in Indonesia. -
Healthcare Technology
With Indonesia’s growing population and a vast footprint in remote areas, telemedicine is a priority and is increasingly a relevant solution. East Ventures, one of the most active venture capital funds in Indonesia, plans to invest another US $30 million into the sector this year. -
Data Centers
The Indonesian government has publicly announced plans to become a "data storage and processing center for all of Southeast Asia. This is going to spur the growth of Indonesia’s hub market from 650MW to 1,410 MW by 2029. -
Sustainable Technologies
New technologies in agriculture, EV industry and technologies addressing global warming will be the focus in 2024.