Indonesian Startup Investments Grow 60 Times Larger
TEMPO.CO, Jakarta - Based on research conducted by Google and AT Kearney, a number of investments towards startup companies have increased 68 folds in the past five years. This trend shows that investor confidence in the startup industry has improved significantly.
“The growth of Ventura Capital (VC) in Indonesia during the past five years has been explosive by improving 60 times larger,” said Mifza Muzayan, Google Sales Operations & Strategy Lead. He predicts a positive outlook for Indonesia in the next year or two.
In 2016, the total amount of investments in startup companies amounted to US$1,4 billion. That number has since risen to US$3,0 billion up to the eighth month of 2017.
"We can see the startup investment momentum has increased two folds compared to 2016. This discovery is really useful, and we hope that it can help elevate investments towards the startup ecosystem even further," said Managing Director of Google Indonesia Tony Keusgen.
Venture capital investors continue to believe in the Indonesian investment opportunity, considering the economic growth of the country, the rising number of the middle class, and the large population of young people that are tech-literate.
An interview conducted with the venture capitals has highlighted four main areas that can accelerate the growth of Indonesia’s startup ecosystem. They are the development of human resources, tax incentives, funding options, and the ease in facilitating a startup.