Welcome to Tech in Asia’s daily newsletter, your essential dose of Asia’s tech and startup buzz. Not yet a subscriber? Register here. Got a story tip? Send it to editors@techinasia.com.
In focus
- Indonesian startups face their next survival test
- Fifty once-active VCs have gone silent in Indonesia
- Airwallex lands US$320 million ahead of Indonesia, Vietnam expansion
Hello reader,
As an Indonesian, the constant stream of bad news lately has been exhausting. The rupiah and the Jakarta Composite Index continue to weaken, fuel prices have risen, and rolling blackouts have hit several parts of the country.
MSCI, which decides how stock markets are classified, recently delayed its review of Indonesia’s market status, including whether the country could be downgraded to frontier market status.
Add to that the string of recent prosecutions involving tech founders and investors, and startups are faced with massive uncertainty over Indonesia’s economic outlook.
The slowdown is beginning to ripple through Indonesia’s startup ecosystem, but its effects vary across companies. For today’s top story, I spoke to businesses in the consumer, logistics, SaaS, and AI sectors about how they are adjusting to Indonesia’s weaker economic environment.
At logistics software provider McEasy, new customer growth has cooled, but demand for fuel management tools is climbing as customers hunt for efficiency gains. Meanwhile, beauty brand Sociolla has pushed through selective price hikes without seeing a meaningful hit to revenue so far.
Today’s issue also features a list of 50 funds that appear to have gone quiet in Indonesia. While these firms previously backed startups in the country, none have made a new investment in the archipelago over the past year.
Their silence could reflect a more cautious stance toward Indonesia’s current challenges. Or it could simply mean they have yet to find startups that fit their mandates.
Either way, the absence of fresh deals from once-active investors raises questions about the future of Indonesia’s tech ecosystem, once the undisputed darling of Southeast Asia’s startup boom.
Jofie Yordan, journalist
Top Story
Economic woes prompt creative pivots among Indonesia’s startups
Image credit: Timmy Loen
A data story you shouldn’t miss
Trending news
Scaling AI is a team effort
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
