Indonesian Startups Roll Out the Welcome Mat to US Investors

Indonesia is rolling out the welcome mat to U.S. investors as the country moves to put additional support behind its startup landscape and promote local talent, according to a press release on Tuesday (Dec. 7).

U.S. investors were invited by Indonesia’s Ministry of Communication and Informatics to a virtual networking event as part of the Joint Exhibition & Junction of start-up Landscape in Indonesia, or JEJALA ID. The Monday (Dec. 6) event introduced startup founders to investors and venture capitalists and included roadshows, workshops, and seminars.

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“The ministry will continue to encourage and support Indonesian start-ups to remain relevant and responsive towards technology development by facilitating them to attract investment from A Series venture capital, through a matchmaking system of JEJALA ID,” said Semuel Abrijani Pangerapan, the ministry’s director-general of informatics applications.

Pangerapan added that the hope is that “our thriving start-ups” will generate jobs, help grow the economy, and lead to digital transformation.

Indonesia’s 2,100 startups include nine unicorns, making it the second-largest digital tech hub in Southeast Asia after Singapore, which has 15 unicorns, according to the release. Indonesia also has the youngest demographics in the region, making digital adoption more likely, and a middle class on the rise, which is linked to a steady increase in gross domestic product per capita over the last 10 years.

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Growth is happening across numerous Indonesian cities, not just in the capital Jakarta region. Demographics, mobile phone use, and private equity capital are supported by the country’s Omnibus Law. Passed last year, the law makes it easier for foreign investors by reducing regulatory barriers.

The Ministry of Communications and Informatics is working to sustain the momentum by creating networking programs that support the relationship between U.S. investors and Indonesian startups.

The agency is “tasked with formulating and implementing national policies in the field of communication and informatics.” It also speeds the dissemination of information technology and digital infrastructure to the public.