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Funds aplenty for Indonesian start-ups in 2022: Venture capitalists
Private equity investors are bullish on Indonesia's tech industry in 2022, especially as COVID-19 travel curbs are eased.
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A unicorn is any privately held start-up valued at more than $1 billion. The choice of the mythical animal alludes to the rarity of such firms. (Shutterstock.com/fatmawati achmad zaenuri)
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ndonesian start-ups enjoyed an influx of funding in 2021 and more is to come as the country’s internet-savvy population grows and COVID-19 travel restrictions are eased, according to venture capital firms.
Willson Cuaca, cofounder and managing partner of East Ventures, said that, while the pandemic pushed up internet usage in Indonesia, the country’s digital economy had already provided a strong basis for growth before the crisis.
“With or without COVID-19, our fundamentals are good. High internet connectivity and efficient digital infrastructure keep the cost of doing business online low, which means companies can become profitable fast,” he said during an online discussion on Oct. 14.
With some 200 million users, Indonesia’s internet penetration rate stood at 73.7 percent in January this year, according to data provider Datareportal.
Cities outside the island of Java have increased their digital competitiveness through wider coverage of mobile communication networks and increased spending on internet data and phone credit.
Read also: Other islands close gap with Java in digital competitiveness
Willson went on to say that, as people become more internet-savvy, local start-ups would not need to spend a lot on marketing or market education, accelerating their path to profitability and attracting more investors.
