JABAR EKSPRES – Research from the Asian Development Bank provides three aspects that can be improved to develop the startup ecosystem in Indonesia.
The research, in collaboration with research institute SMERU, shows that development-oriented startups in Indonesia would benefit from developing their ecosystems to realize their potential and contribute to the country’s development.
While fintech and e-commerce dominate the digital ecosystem in Indonesia, startups focused on areas such as education, healthcare, agriculture and green technology are developing less rapidly, according to the study Indonesia’s Technology Startups: Voices From the Ecosystem.
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These startups’ innovations will have a high impact on development such as improved health and well-being, jobs, and climate solutions. However, they are often considered risky by existing investors and financial institutions.
According to the study, there are three aspects that can be focused on to improve Indonesia’s startup ecosystem including the quality of incubators and accelerators, access to finance for early-stage startups, and talent development.
Incubators and accelerators can benefit from better staff, especially employees with more business knowledge, and mentors with sector expertise and experience.
New startups struggle to convince investors to provide funding, highlighting the importance of finding and developing alternative sources of capital and support.
Finding good talent is also a challenge due to low supply and competition from larger companies in recruitment efforts. This is certainly aside from the need for better geographical distribution of support.
“Key players and programs are concentrated in Java, especially in Jakarta and in Bali, while other regions are underserved,” said SMERU Research Institute Senior Researcher and lead author of the report, Palmira Permata Bachtiar, in an official release, quoted by JabarEkspres.com on Wednesday, June 28, 2023.
Palmira added that it would be better to think of one national ecosystem and instead consider several city and local ecosystems that serve nearby startups.
