TEMPO.CO, Jakarta - Ever since the COVID-19 pandemic struck Indonesia, many startups were forced to face the difficult fact of laying-off employees and conduct business efficiencies to survive the negative effects long after the pandemic ends.

Several known startup companies that did not make it through the economic pressure caused by the global COVID-19 pandemic include Uber Technologies, Traveloka, Agoda, and many more.

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This trend attracted the attention of an expert in the field of startups and executive director of the Indonesia ICT Institute Heru Sutadi, who explained that the situation has affected all ranges of the startup industry, starting from established ones that have the status of unicorns and decacorn.

According to Heru Sutadi, there may be some companies with stable cash flow and there might be others that are skimping on expenses to survive.

However, he asserts that startups, in general, are not stable yet due to the pandemic that has hugely affected their source of investment.

“The first three months of the COVID-19 has caused companies to struggle,” said Heru. “Status as a unicorn means investment status, but the performance is fundamentally not known yet. Take an example of OVO, they are still struggling and have yet made a profit.”

Heru added that the instability of startups is not just happening in Indonesia but also internationally.

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