Indonesia’s AI startup ecosystem remains dominated by enterprise-focused solutions and concentrated in Jakarta, as AI adoption continues to grow to support efficiency and digital transformation.

Incubator and accelerator programs are playing an increasingly important role in supporting startup growth in Indonesia by providing mentoring, industry networks, and access to funding for founders at various stages of business development.

Over the past decade, startup exits in Indonesia have increasingly centered on IPOs and mergers and acquisitions (M&A), reflecting the dynamics of liquidity and the maturity of the country’s startup ecosystem.

The pentahelix approach is part of Komdigi’s strategy to advance Indonesia’s digital transformation through collaboration among government, academia, businesses, communities, and media, involving more than a thousand entities across various sectors.

Male founders continue to dominate startup funding, while the number of startups founded by women in Indonesia continues to grow.

Indonesia’s startup ecosystem remains dominated by the financial, commerce, and digital technology and infrastructure sectors, with business models centered on platforms and consumer transactions.

Despite global investors holding substantial reserves of uncommitted capital, startup investment continues to slow amid market caution, delayed exits, and valuation corrections. This trend is also reflected in the decline in startup funding in Indonesia since 2021.

Startup funding in Indonesia has slowed since peaking in 2021. Investment value has fallen significantly in recent years, while deal activity has continued, albeit with smaller funding rounds.

Indonesia’s startup growth has established a strong global position, but its domestic distribution remains uneven and heavily concentrated in certain regions.