The growth of Indonesian local startup scene is predicted to slow down this year due to the decline of venture capital investment.
“The local startup scene has been slowing down since 2012 because the entrepreneurs now realize that doing a business is not just about design or website. It requires business capital and good distribution,” Natali Andrianto, co-founder of #Startuplokal, who is also the founder of Indonesian Startup Foundation mentioned.
According to him, the local startup scene was booming in 2011, when there were 52 startups within six months. However, in 2012 there were only 12 startups remained. From the total of 800 startups in 2011, last year it reduced to 300 startups only.
He also added that the collaboration in Indonesia is very weak, while the number of middle-range startups which can be invested by venture capitalist is limited. Despite all that, Indonesian market is actually quite promising especially in the e-commerce, game application and travel space.
International Data Corporation (IDC) previously predicted that the value of local content acquisition or partnership with local startup will reach US$15 to US$17 million. IDC claimed that the startup that has the local characteristics with Indonesian language will attract foreign investors.
IDC added that the startup that is potential to have partnership with foreign investor includes online game, social media, mobile application and e-commerce sector.
About the author
Sandra is a technology enthusiast and she is passionate about the industry. After graduating from University of South Australia, Sandra gained an experience in mobile VAS in Malaysia before coming back to Jakarta. She also served as a Secretariat in Malaysian Mobile Content Providers Association (MMCP) back then. Apart from that, she has the experience in mobile game in Indonesia, Australia and New Zealand. Sandra enjoys reading a book and chill out at nice cafe accompanied by good coffee and she likes meeting new people.
Image Credits: InterNations
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