Indonesia’s digital industry has grown significantly stronger in recent years and we should be proud. With globally recognised unicorn start-ups—GO-JEK, Tokopedia, Bukalapak, and Traveloka—and support from the government, such as the annual programme called “Nexticorn”, we can see that the opportunity has never been more perfect for our start-ups to shine. But what can we really expect in 2019 for the start-up scene? Read on to find out.

Largest digital market in Southeast Asia

analysis-business-businesswoman-955447.jpg

Photo: Courtesy of Pexels

The number of rising start-ups in Indonesia has been soaring since our current unicorns—GO-JEK, Tokopedia, Bukalapak, and Traveloka—rose to fame, and we believe this is just the start. Our reasoning is also supported by various facts. For instance, Google and Temasek have predicted that Indonesia’s market value will triple from US$27bn in 2018 US$100bn in 2025. This sets our digital economy to become the largest in Southeast Asia.

Rising like never before

blur-business-chart-69760.jpg

Photo: Courtesy of Pexels

With the confidence of countless budding entrepreneurs and the supporting environment, it shouldn’t be a surprise that investors have expressed huge interest in the country’s digital industry. It was reported that by 2018, Indonesia had secured at least 51 investments, including 20 recorded seed-funding transactions, 14 instances of series-A funding, and 11 cases of series-B funding. The total investments achieved reach more than Rp4tn or US$274m.

Fintech will dominate

adult-agreement-beverage-423368.jpg

Photo: Courtesy of Pexels

The fintech scene has definitely been growing rapidly for the past few years, and it shows no sign of slowing down. It was recorded by the Financial Services Authority (OJK) that the total financing channelled by these tech-based lending providers reach more than US$951m in the first three quarters of 2018. Moreover, it is projected that the total loan figure is to grow to US$2bn by the end of 2019.  With that said, we can safely assume that fintech will remain on top in 2019.

Healthcare and education

arms-care-check-905874.jpg

Photo: Courtesy of Pexels

In 2018, Minister of Communication Rudiantara projected that Indonesia would have more than five unicorns by 2019 with healthcare and education being the most promising sectors. So while e-commerce and fintech are expected to remain strongest, other sectors are also expected to soar this year.

More funding expected

achievement-agreement-body-language-1179804.jpg

Photo: Courtesy of Pexels

All progress projected in the year to come will require enough funding, and that is exactly what we can expect. As stated by the initiator of 1000 Digital Movements, Yansen Kamto, Indonesian start-ups will remain popular among investors and the ecosystem was “super-active” in 2018. He is also confident that in 2019, more funding from Southeast Asia and China is to be expected for early-stage start-ups especially seed, pre-series A, and series A.

 

See also: 5 Companies Set To Become Indonesia’s Next Billion-Dollar Start-Ups

Tags: Indonesia, Business, Fintech, Start-up, Unicorn, What To Expect