What the IDX plunge means for tech

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Hello reader,

Indonesia isn’t having the best time right now.

Its economic woes, which include a shrinking middle class, decreasing consumption, and a weakening rupiah, have been well-documented. The Indonesia Stock Exchange’s composite index plunged by 6% on March 18, leading the exchange to temporarily halt trading.

It’s understandable that people are getting jittery and that investors are starting to question the long-term viability of the market. What this heralds for Indonesia’s tech and startup community is certainly something to think about. We go deeper into this in today’s premium story.

Today we look at:

• How Indonesia’s stock plunge isn’t tech’s problem just yet
• A semiconductor designer in Malaysia that’s raised fresh funds
• Other newsy highlights such as Meesho’s profitable FY2024 and Chagee’s IPO plans in the US

Premium summary

What’s up, Indonesia?

Image credit: Timmy Loen

On March 25, a few days after the IDX experienced a sudden drop, the rupiah’s value fell to 16,642 against the US dollar, which is its lowest since the 1998 Asian Financial Crisis. All this signals potential economic instability in the largest archipelago in the world.

• Mixed reactions: Experts have had differing views: Some say the impact of these challenges are short-term corrections while others foresee deeper, lasting effects on Indonesian tech startups.
• The impact on tech: The stock prices of IDX-listed tech firms GoTo, Bukalapak, and Blibli did not significantly fluctuate on the March 18 slump. However, institutional investors seem to be losing faith in the market, which spells bad news for startups and tech companies that are already public or want to be.
• Bang for your buck: The weakening rupiah would have some impact on VCs and startups, especially in terms of valuations and returns. But on the flip side, investors looking to deploy capital could be getting more bang for their buck.

Read more: Indonesia’s stock plunge isn’t tech’s problem – yet

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