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Indonesian start-ups seek to expand, accumulate more funding in 2021
The Venture Capital and Startup Indonesia Association (Amvesindo) believes the country can see more funding in 2021, despite a slowdown in the second half of 2020.
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Start-up employees work in the Innovation Room, an incubator space for start-ups provided by the Manpower Ministry in Jakarta, in this file photo. (JP/Rainier Nathaniel )
Indonesian start-ups are looking forward to more funding and clearer paths to profitability in 2021 as the technology industry blooms amid the COVID-19 pandemic, with optimism in the sector fueled by ample dry powder.
The Venture Capital and Startup Indonesia Association (Amvesindo) stated that the country could see more funding in 2021 despite a slowdown in the second half of 2020 due to the coronavirus outbreak.
“Even during a pandemic, venture capitalists [VCs] always anticipate a good deal,” Amvesindo chairman Jefri Sirait told The Jakarta Post on Dec. 21.
Amvesindo data show that US$1.9 billion in capital has been raised by 52 start-ups in Indonesia as of September last year. The association expects the 2020 year-end figure to reach $2.5 billion, which would be slightly lower than $2.9 billion in capital raised by 113 start-ups in 2019.
In October last year, VC assets were up 14.5 percent year-on-year (yoy) at Rp 18.9 trillion, according to Financial Services Authority (OJK) data.
“The increase in assets means ample capital for funding [in 2021]. Compared to neighboring countries, Indonesia is still a favorable investment destination,” Jefri said in November.
The coronavirus outbreak has helped many homegrown start-ups as customers are turning to digital services to meet their daily needs amid movement restrictions implemented by the government.
