🚀 Indonesia’s startup scene faces a reality check
Founders and investors call for stronger fundamentals and fairer access to capital.
🎯 The Main Takeaway
Indonesia’s startup landscape is under pressure as several major players struggle to sustain growth — prompting calls for a more inclusive and durable ecosystem. 📉💡
On 21 October 2025, KUMPUL, an Indonesia-based entrepreneurship ecosystem enabler, hosted the Connect for Change (C4C) Summit 2025 to address one of Southeast Asia’s most urgent economic challenges: the Missing Middle.
🔍 Why It’s on Our Radar
Once hailed for birthing unicorns like Gojek and Tokopedia, Indonesia’s startup momentum is slowing.
Key causes include:
Weak product–market fit
Overreliance on investor capital
Costly customer education — especially in agritech 🌾
The pattern signals a shift from “growth at all costs” to profitability and purpose.
🌏 The Big Picture
According to an economist from Universitas Pendidikan Indonesia, Heny Hendrayati, five recurring issues drive the wave of closures:
1️⃣ Products that don’t solve real needs
2️⃣ Unsustainable, cash-burning promos
3️⃣ Heavy dependence on investor funding
4️⃣ Minimal differentiation in crowded markets
5️⃣ High user education costs
💰 A global funding slowdown has tightened follow-on investments across Southeast Asia.
Still, green tech 🌿 and health tech 🏥 show resilience as demand for sustainability and digital healthcare grows.
⚖️ What’s at Stake
Without wider access to capital and stronger fundamentals, Indonesia risks:
Losing momentum in key innovation sectors
Widening inequality between metro and regional founders
Leaving millions of emerging entrepreneurs behind 🚫
“The Missing Middle reflects the shared challenge of strengthening inclusion, competitiveness, and opportunity across Southeast Asia.” (Faye Wongso, Founder of KUMPUL)
🧩 Beyond the Headlines
At the Connect for Change (C4C) Summit 2025 in Jakarta:
KUMPUL (PT Ruang Kreasi Berdaya) pushed collaboration between startups, corporates, investors, and government 🏛️
Xendit emphasized expanding digital participation through cross-border payments and QRIS integration for MSMEs 💳
We need equal opportunity in the digital economy, not just for the big players.” (Tessa Wijaya, Co-founder of Xendit)
📌 Bottom Line
Indonesia still has massive startup potential — but success now hinges on relevant innovation, smarter execution, and fairer access to capital across all regions.
The next phase of growth will test whether Indonesia can evolve from unicorn ambition to equitable innovation. 🦄➡️⚙️
Need More Angles
Tech Collective SEA 4 reasons Southeast Asian startups fail and what to do to avoid it happening
ff.co The Ultimate Startup Guide With Statistics (2024–2025)
Global Venturing Southeast Asia’s startups are struggling – they need to think globally
(VBD/ELS/QOB)