Indonesia’s biggest issue? A lack of founders, says Achmad Zaky

With additional reporting by Ghinaa Rahmatika.

While some believe the biggest issue facing Indonesia’s startup ecosystem is shrinking funding, there’s a larger concern: the shortage of founders.

That’s according to Achmad Zaky, founder of Bukalapak and founding partner of Init 6. Zaky tells Tech in Asia that the country’s drying supply of startup builders – as well as tougher economic conditions – has led to fewer new startups this year.

Achmad Zaky / Photo credit: Tech in Asia

Indeed, data from the Indonesia Startup Ecosystem Report for the second quarter of 2025 shows that early-stage funding – including seed and pre-seed rounds – dropped from 10 deals in Q2 2024 to only three in Q2 2025.

Investor confidence in Indonesia has also been shaken by a string of startup fraud cases, mass layoffs, and wider economic uncertainty.

Zaky believes the combination of fewer startups and cautious investors could slow Indonesia’s economic recovery.

The country will need to increase the supply of founders quickly, while also calling for “synergy between ecosystem players,” he adds.

Founded in 2020, Init 6 focuses on early-stage, industry-agnostic startups. It currently backs around 35 companies across consumer tech, fintech, cloud, edtech, SaaS, social network, cleantech, and B2B sectors.

Zaky tells Tech in Asia that Init 6 has only made two new investments so far in 2025, down from three in 2024.

Even with fewer deals this year, Zaky says the firm’s main investment focus is still Indonesia’s consumer market. “This is not only consumer products, but [also] consumer fintech [and] consumer tech,” he said during the sidelines of this year’s Tech in Asia Conference in Jakarta.

“Anything consumer is always interesting, even consumer education,” he added.

One of Init 6’s two investments this year was One% Nutrition. The Indonesian health and wellness brand secured an undisclosed pre-seed round in May from Init 6 and First Move, the Malaysia-based VC firm founded by Fave’s Joel Neoh.

Zaky declined to disclose the details of its second investment this year.