Home Blog Indonesian Startup Outlook: Challenges & Opportunities Business Licenses | Business Setup | Indonesia Indonesian Startup Outlook: Challenges & Opportunities InCorp Editorial Team 2 July 2025 5 minutes reading time Table of Contents Indonesian Startup Ecosystem and Its Current Standing Main Highlights Southeast Asian Startup Ecosystem in 2024 6 Types of Promising Startups in Indonesia Key Trends and Challenges Which Sectors Are Best for Startups in Indonesia for 2024 Launch Your Indonesian Startup with InCorp As we enter 2024, the Indonesian startup ecosystem is at a crossroads. While boasting a large and internet-savvy population, the global economic slowdown casts a shadow over its previously rapid growth. Indonesian Startup Ecosystem and Its Current Standing Indonesia has immense startup growth potential, fueled by its expansive market size and widespread internet usage. While most Indonesian startups operate in the digital sphere, their unicorn counterparts span various sectors, including logistics, travel, ticketing, and financial technology services. Regarding funding, data from the Statista Research Department as of January 2024 stated that Akulaku, an emerging digital banking and finance platform in Southeast Asia, emerged as Indonesia’s top startup. The calculation is based on its accumulated funding over the past two years, totaling approximately 310 million U.S. dollars. Moreover, despite their status as leading startups, some companies need help to overcome challenges. Bukalapak, Indonesia’s first unicorn listed on the Indonesian Stock Exchange in 2021, saw its value decline significantly after its 1.5 billion U.S. dollar public offering. Similarly, GoTo Group, an Indonesian decacorn, encountered difficulties in 2022 following its IPO, leading to a reduction of 1,300 employees in November 2022 due to adverse macroeconomic conditions aimed at improving financial stability. Main Highlights Southeast Asian Startup Ecosystem in 2024 The Asian Development Bank forecasts a 4.7% expansion in the region’s GDP for the current year, up from 4.3% in 2023. Aligning with these estimations, analysts at Nomura Global Research anticipate that the ASEAN-5 nations—comprising Indonesia, Malaysia, the Philippines, Singapore, and Thailand—will collectively grow at a rate of 4.5% in 2024, compared to the 3.9% recorded last year. Investment allocations at the country level continue to be concentrated in Singapore and Indonesia, with these two countries accounting for over 70% of funding since 2019. This trend is likely to persist throughout the current year as well. Furthermore, the beginning of the year has seen a strong start in terms of fundraising activities for Southeast Asian startups, as highlighted below: CompanyFunding TypeLocationAmount (USD)InvestorsAsia PartnersFundraisingSingapore474 million–Silicon BoxSeries BSingapore200 millionSeveral companiesAtomeFintechSingapore31 millionAdvance Intelligence GroupSwap EnergySeries AIndonesia22 millionQiming Venture Partners, GGV Capital, Ondine CapitalMaya InnovationsSeries CPhilippines80 millionSeveral investorsKomunalSeries AIndonesia5.5 millionSumitomo Corporation Equity Asia, Several investorsSemaaiFundingIndonesia4.7 millionCyberAgent CapitalFunding SocietiesInvestmentSingaporeUndisclosedMalaysia’s Khazanah Nasional, CGC Digital 6 Types of Promising Startups in Indonesia The Indonesian startup ecosystem is brimming with potential, offering fertile ground for diverse ventures. Here’s a breakdown of 6 prominent types of startups. Fintech This sector leverages technology to improve and innovate financial services, encompassing mobile payments, digital lending, and wealth management. E-Commerce This category involves businesses facilitating online buying and selling of goods and services, including marketplaces, on-demand delivery, and social commerce. Edtech These startups use technology to enhance and personalize the learning experience, offering online courses, educational apps, and learning management systems. Healthtech This sector utilizes technology to improve healthcare delivery and accessibility, encompassing telemedicine, health data management, and remote patient monitoring. Agritech These startups aim to modernize and optimize the agricultural sector through technology, including solutions for precision farming, smart irrigation, and online marketplaces for farm products. Sustainability Tech This category focuses on developing technology solutions for environmental and social impact, encompassing renewable energy, waste management, and resource efficiency. READ MORE:Opportunities To Establish EdTech Startup Companies To ConsiderStartup Company Indonesia: Build A Successful Team For A Small BusinessAn Introduction To Crowdfunding Startups In Indonesia: Tips & Requirements Key Trends and Challenges Indonesia’s startup ecosystem has witnessed significant growth, closely tied to increasing venture capital funding, which nearly doubled over five years. With over 340 investments in 2022, the country saw its highest number of venture capital deals. By early 2022, more than 200 startups had raised at least a million dollars in funding, reflecting the expanding investment landscape. Indonesia has eight unicorns and two decacorns, including GoTo Group and J&T Express. Moreover, some challenges surrounding startup development include: Fundraising Fundraising remains challenging, particularly during tech winter, as investors become more cautious about deploying capital. Profitability Major tech companies in Indonesia face pressure to demonstrate profitability, as those listed on the stock exchange have yet to achieve it. This has led to market skepticism regarding the future potential of technology firms. Ecosystem Beyond Jakarta There’s a pressing need to expand the startup ecosystem beyond Jakarta despite it being a prominent hub. Challenges such as talent shortages and logistical obstacles persist. Which Sectors Are Best for Startups in Indonesia for 2024 Some potential sectors that will likely experience exponential growth in 2024 are: tech-based production and distribution of poultry automated logistics digital-based supply chain parenting platform electric motorbike manufacturing social commerce financial assets platform Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Contact Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Launch Your Indonesian Startup with InCorp Indonesia’s booming startup scene, fueled by a massive market and rising internet adoption, is ripe with opportunity. InCorp Indonesia (an Ascentium Company) is your trusted partner for a smooth and successful launch with our: Streamlined Company Registration: Simplify the registration process and hit the ground running. Business License Services: We handle licensing requirements, ensuring you operate with compliance. Whether you’re a local entrepreneur or an international investor, we guide you through every step, minimizing complexities and maximizing your chances of success in Indonesia’s dynamic startup ecosystem. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions What duties do investors have when they own shares in a company that has been liquidated? Shareholders must appoint a liquidator during the shareholders’ meeting approving liquidation. If no liquidator is appointed, the Board of Directors assumes the role. Creditors can submit claims within two years of the liquidation announcement, provided there are proceeds available. If proceeds have been distributed, shareholders must return them proportionally to settle creditor claims. Whereas employee termination packages vary based on employee status, service years, and reason for liquidation. Can a foreigner form a CV? A foreigner is not allowed to form a CV in Indonesia Are there investment facilities provided for foreign investors in Indonesia? A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances. Import facilities Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production. Tax holiday The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status. Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy. Tax allowance For companies in certain designated areas or regions, the government may provide the following tax concessions: Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration. Accelerated depreciation and/or amortisation deductions An extension of tax losses carried forward for a maximum of ten years A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents The applicant eligible has to meet high-level-criteria for the above tax facilities: High investment value or for export purposes High manpower absorption High level of local content Investment allowance The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project. Super deduction This facility could be granted to certain businesses, such as: 60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame. Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities. Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia. Will the government check the minimum paid-up capital for doing business in Indonesia? The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must. Get in touch with us. Lead Form Updates Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses Indonesia in 2017: The Year in Numbers Read more Benefits of PEO Outsourcing in Indonesia Read more Understanding Danantara: Indonesia’s First National Investment Management Body Read more