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Jofie Yordan · · 5 min readBeyond politics: why Solo may be Indonesia’s next tech hotspot
Solo is a historic center of power. It served as the capital of the Mataram Sultanate, the last major kingdom on Java before the Dutch colonized the island.
Since then, the city in Central Java has built a reputation as a cultural hub with a population of over half a million people. It has no high-rise buildings, and a visit there feels like “traveling back to another time.”
At first glance, Solo may not appear to be the ideal setting for Indonesia’s latest tech hotspot. Yet, telco company Indosat Ooredoo and chipmaker Nvidia have committed to building a US$200 million AI center in the city this year.
Photo credit: alfianlight / Shutterstock
Solo has attracted significant tech investment since Gibran Rakabuming Raka – son of former president Joko Widodo – became its mayor in 2021. Widodo was born and raised in the same city.
Raka, who now serves as Indonesia’s vice president, successfully brought Shopee to open an office in Solo the same year he took office as mayor. Grab, Emtek, and Bukalapak also pledged to support the development of Solo Smart City.
He inaugurated the Solo Technopark in 2023 as well. It is a five-hectare multipurpose complex that houses the city’s tech ecosystem. Several firms – including Garena, GoTo, and Tokopedia – now have training facilities, community gathering hubs, and co-working spaces in the area.
There have been discussions that the influx of major tech players into Solo is due to Raka’s political influence and companies’ efforts to build closer ties with those in power.
Even so, experts and industry insiders highlight other advantages that make the city an appealing destination for tech investment outside Jakarta.
Top talent, low costs
Solo and its surrounding areas – including Yogyakarta, which is located 65 kilometers from the city – have a tech talent pool comparable to that of Jakarta.
The region is home to several universities that rank among the top 10 in Indonesia: Universitas Diponegoro in Semarang, Universitas Sebelas Maret in Solo, and Universitas Gadjah Mada in Yogyakarta.
Yogyakarta alone has more than 20 universities, making it a major educational hub. The proximity between Yogyakarta and Solo – just an hour by train – makes talent exchange easy between the two cities.
Shopee’s office at Solo Technopark / Photo credit: Solo Technopark
Tale of two cities
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The city has improved infrastructure and launched Solo Technopark and Smart City programs backed by big tech companies.
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