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When people in the tech and startup world learn that I live in Hanoi rather than Ho Chi Minh City, they’re almost always surprised.
Ho Chi Minh City is a much bigger business and tech hub, so wouldn’t it make more sense for someone in this field to work there?
Maybe, but this is the year 2024 when so much of our work and interactions happen online anyway. Plus, the cost of living is cheaper here in Hanoi, and that’s definitely a factor for me.
This seems to be something Indonesian startups are also considering. Local firms have begun relocating some of their teams out of Jakarta to more affordable cities. Today’s featured story dives into that trend.
Today we look at:
- Indonesian companies opening offices in places like Yogyakarta and Solo
- How Telegram is in the spotlight for facilitating cybercrime
- Other newsy highlights such as virtual banks in Hong Kong struggling to make a profit and China bemoaning the EU’s plans to slap tariffs on its EVs.
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Time to call the movers?
Image credit: Timmy Loen
Tech firms in Indonesia are increasingly moving key operations out of Jakarta to cities like Solo and Yogyakarta in a bid to become more efficient.
It’s certainly a way to save on operating expenses amid the tech winter, but there are plenty of factors to consider before moving away from the capital.
- Cost cutting: In August, Shopee relocated its customer operations team from Jakarta to Solo and Yogyakarta. Some say this was a move to reduce costs, given that the minimum wage in the two cities is lower than in the capital. Startups including Tokopedia, Sirclo, Privy, and Dagangan all have offices in these two areas.
- School’s in: Yogyakarta holds something of a tech talent advantage: The region has more than 20 universities including the prestigious Gadjah Mada University.
- Considerations: While moving some teams outside of Jakarta may make sense for more mature companies, early-stage startups need to establish their company culture by working closely together, according to Rexi Christopher, a venture partner at VC firm Init 6. Jakarta also remains the country’s business center, so startups will need to maintain some presence there, he told Tech in Asia.
Read more: Jakarta: no longer the city to rule them all?
Crime pays on Telegram
VIP Pass and Startup Factory are completely SOLD OUT
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