INDONESIA: the land of a thousand kings. An exotic country chock-full of beauty, culture and a rich heritage. Home to more than 261.1 Mn people spread across 17,508 islands, Indonesia has undergone dramatic urbanisation in the last couple of years. Today, it boasts a thriving startup ecosystem. As per a report by Google and management consulting firm AT Kearney, in the first eight months of 2017, Indonesian startups collectively raised $3 Bn in 53 investment deals.
According to the study, titled “Indonesia Venture Capital Outlook 2017”, investment in the country’s startup market jumped 68 times in the last five years to around $1.4 Bn in 2016. Commenting on the spectacular growth of Indonesian startups, AT Kearney partner Alessandro Gazzini said at a recent press conference, “Due to the massive growth, the value of startup investments in Indonesia may surpass the nation’s oil and gas investment which was$5 Bn in 2016.” As part of the survey, Google and the team from AT Kearney conducted thorough analysis of Indonesia’s VC landscape as well as investment flow. The information presented in the report was collated from multiple interviews with more than 25 domestic and international venture capitalists. The objective of the study, according to Gazzini, was to unravel the investor’s outlook and priorities when it comes to infusing funds in Indonesian startups. As per the report, majority of these investments in the country’s startup ecosystem continues to be at the Seed and early stages.
