AFP, Jakarta :
Big-name investors including Expedia and Alibaba are pumping billions of dollars into Indonesian tech start-ups in a bid to capitalise on the country’s burgeoning digital economy and potential as Southeast Asia’s largest online market.
Indonesia has seen a surge of cash into its technology sector over the past two years, helping support dozens of homegrown start-ups ranging from ride hailing apps to e-commerce firms.
And with a population of more than 250 million, a swelling middle class and growing availability of cheap mobile devices, firms from across the world are piling in.
“We believe that Indonesia is poised for a huge leap forward for its digital economy, following China’s growth and becoming the leading tech destination in the Southeast Asia region,” Adrian Li, a partner in Jakarta-based Convergence Ventures, told AFP.
Last year $631 million in disclosed venture capital was ploughed into the country, according to research firm CB Insights, up from $31 million in 2015.
But that figure has already been shattered in 2017, with $3 billion worth of deals clinched as of September 2017, said Meghna Rao, a tech industry analyst at the firm.
Tokopedia-a marketplace that allows users to set up online shops and handles transactions-won $1.1 billion in capital from China’s Alibaba in August.
Motorbike on-demand service Go-Jek secured $1.2 billion from Chinese tech giants JD.com and Tencent Holdings in May, according to data from Crunchbase.
Big-name investors including Expedia and Alibaba are pumping billions of dollars into Indonesian tech start-ups in a bid to capitalise on the country’s burgeoning digital economy and potential as Southeast Asia’s largest online market.
Indonesia has seen a surge of cash into its technology sector over the past two years, helping support dozens of homegrown start-ups ranging from ride hailing apps to e-commerce firms.
And with a population of more than 250 million, a swelling middle class and growing availability of cheap mobile devices, firms from across the world are piling in.
“We believe that Indonesia is poised for a huge leap forward for its digital economy, following China’s growth and becoming the leading tech destination in the Southeast Asia region,” Adrian Li, a partner in Jakarta-based Convergence Ventures, told AFP.
Last year $631 million in disclosed venture capital was ploughed into the country, according to research firm CB Insights, up from $31 million in 2015.
But that figure has already been shattered in 2017, with $3 billion worth of deals clinched as of September 2017, said Meghna Rao, a tech industry analyst at the firm.
Tokopedia-a marketplace that allows users to set up online shops and handles transactions-won $1.1 billion in capital from China’s Alibaba in August.
Motorbike on-demand service Go-Jek secured $1.2 billion from Chinese tech giants JD.com and Tencent Holdings in May, according to data from Crunchbase.
