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5 Things To Expect From Indonesia’s Start-up In 2020
Indonesia’s digital industry has grown significantly stronger in recent years. With globally recognised unicorn start-ups—GO-JEK, Tokopedia, Bukalapak, and Traveloka—and support from the government, such as the annual programme called “Nexticorn”, we can see that the opportunity for start-up to shine. We can expect in Q4 2020 moving forward for the start-up scene as follows :
- The largest digital market in Southeast Asia
The number of rising start-ups in Indonesia has been soaring since GO-JEK, Tokopedia, Bukalapak, and Traveloka—rose to fame, and we believe this is just the start. Google and Temasek have predicted that Indonesia’s market value will triple from US$27bn in 2018 US$100bn in 2025. This sets Indonesia digital economy to become the largest in Southeast Asia.
2. Rising like never before
It was reported that by 2018, Indonesia had secured at least 51 investments, including 20 recorded seed-funding transactions, 14 instances of series-A funding, and 11 cases of series-B funding. The total investments achieved reach more than Rp4tn or US$274m.
3. Fintech will dominate
It was recorded by the Financial Services Authority (OJK) that the total financing channelled by these tech-based lending providers reach more than US$1 billion in 2018. it is projected that the total loan figure is to grow to US$2bn by the end of 2019.
4. Healthcare and education
In 2018, Minister of Communication Rudiantara projected that Indonesia would have more than five unicorns by 2019 with healthcare and education being the most promising sectors. So while e-commerce and fintech are expected to remain strongest, other sectors are also expected to soar this year.
5. More funding expected
As stated by the initiator of 1000 Digital Movements, Yansen Kamto, Indonesian start-ups will remain popular among investors and the ecosystem was “super-active” in 2018. He is also confident that in Q2-Q4 2020, more funding from Southeast Asia and China is to be expected for early-stage start-ups especially seed, pre-series A, and series A.