In recent years, Indonesia has increasingly cemented its position as one of Asia’s major startup growth hubs. This status is supported by data. According to Startup Ranking as of May 2026, Indonesia had 3,195 startups, placing it sixth globally.
The ranking is based on the strength and digital visibility of startups in each country, taking into account indicators such as website popularity, online presence, and the digital performance of startup companies.
This achievement places Indonesia ahead of several developed countries, including Germany and France, while reinforcing its position as one of Asia’s largest startup ecosystems. However, despite this scale and global visibility, the domestic distribution of startups remains uneven. Innovation and funding activities are still heavily concentrated in DKI Jakarta, which is home to more than 700 startups, far more than any other province.
According to data compiled by Tech in Asia, Jakarta is the main hub of Indonesia’s startup ecosystem, with more than 794 startups. This figure far exceeds that of other regions in Indonesia and reinforces Jakarta’s position as the epicenter of innovation, funding, and technology development. This concentration shows that startup growth in Indonesia has yet to be distributed evenly across provinces and regions.
Outside Jakarta, several provinces on the island of Java are beginning to form emerging startup clusters, although their scale remains relatively small. Outside Java, meanwhile, the number of startups tends to be very limited, with some provinces recording only one or two entities. This pattern highlights how access to capital, talent, and supporting ecosystems remains concentrated in certain areas, particularly Jakarta and its surrounding regions.
The uneven distribution of startups is closely linked to regional digital readiness. The 2025 Indonesia Digital Society Index (IMDI) shows that provinces with the highest digital scores are generally also those with more intensive startup activity.
DKI Jakarta ranked first with a score of 56.97, followed by the Bangka Belitung Islands (52.15), West Java (52.05), Central Java (51.19), and the Special Region of Yogyakarta (51.13). These high scores reflect a combination of digital literacy, infrastructure access, and stronger technology adoption, all of which provide an important foundation for startup growth.
Interestingly, the distribution of Indonesian startups extends beyond the country itself. Tech in Asia data shows that a number of Indonesian startups have established or operate business entities overseas, including in Singapore. In some cases, Singapore even serves as the location of their headquarters, as is the case with Traveloka, PlayGame, and Peris.ai. Other Indonesian startups have also expanded their business presence by opening offices or operating entities in Singapore, including GoTo, J&T, Xendit, and Kopi Kenangan.
The choice of Singapore as either a headquarters or expansion destination is not without reason. Beyond its geographical proximity and access to an integrated Southeast Asian regional market, Singapore offers a significantly more conducive business environment for startups. The presence of global investors, access to international funding networks, and its reputation as an Asian technology hub make Singapore a strategic gateway for Indonesian startups looking to scale up.
Indonesian startups’ preference for establishing offices in Singapore can also be seen through a comparison of the ease of doing business across the region. The World Bank’s 2025 Business Ready report shows that the most significant gaps between Indonesia and Singapore are in the ease of starting a business, international trade, and business insolvency mechanisms.
These three areas are fundamental to the startup life cycle, from company formation and cross-border expansion to restructuring or exit scenarios. The wide gaps in these dimensions indicate that Singapore’s procedural efficiency and system certainty remain key differentiating factors in supporting the growth of globally oriented businesses.
Conversely, the relatively smaller gaps in areas such as employment, market competition, and dispute resolution suggest that Indonesia’s challenges do not lie solely in its domestic market dynamics, but also in the systemic integration and efficiency that support business activities at the regional and international levels.
Beyond regulation, fiscal factors further strengthen Singapore’s appeal. The country applies a corporate tax rate of 17 percent, lower than Indonesia’s rate of around 22 percent. This difference is an important consideration, particularly for startups in the growth stage that still rely heavily on capital efficiency. With a more competitive tax structure, startups have greater room to allocate funds toward product development, market expansion, and talent acquisition.
The dominance of Jakarta and the growing presence of Indonesian startups in Singapore therefore reflect strategic choices by businesses in response to ecosystem readiness, both domestically and abroad. This distribution provides a snapshot of an ecosystem still in development, where concentration, expansion, and growth opportunities are unfolding simultaneously and shaping the future direction of Indonesia’s startup ecosystem.
