Indonesian Startup Ecosystems More Established

Summary

The value of investment entering large-scale startups in Indonesia, such as Gojek and Tokopedia, declined last year, according to Cento Ventures' data. However, Tourism and Creative Economy Ministry's Deputy for Capital Access Fadjar Hutomo said in a statement on Tuesday (18/2) that this condition was a positive condition since it indicates that investors were investing in small and medium scale startups.

The more investment that enters small and medium startups, the more the ecosystem is established. It can also boost equity in the investment. Despite starting to go into small and medium startups, Fadjar said investors are indeed dealing with a "burning money" strategy (the S curve). It means the investment is a long-term investment. Therefore, investors are more interested in funding startups that have fast capital turnover.

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