Indonesia ranked 5th on the World’s Biggest Startup Center
Do you know that Indonesia is one of the fast-growing startup centers in the world? According to Startup Ranking, Indonesia ranked 5th as the country with the most startups in the world. Currently, Indonesia has 2,341 startups. Indonesia only falls behind the United States with 71,224 startups, India with 13,107 startups, the United Kingdom with 6,235 startups, and Canada with 3,310 startups. Indonesia is also the only Southeast Asian country that made it to the top 10.
A lot of Unicorn Startup
Aside from being one of the startup centers in the world, Indonesia is also a home to several successful startups. Among the 2,341 startups in Indonesia, there are a lot of startups with unicorn status (has a $1 billion valuation). Some of the startups are J&T Express with $7,8 billion valuation, Traveloka with $3 billion, OVO with $2.9 billion, and Ajaib and Xendit who each have a $1 billion valuation.
One Decacorn Startup
Currently, Indonesia has 1 fast-growing startup with decacorn status (has $10 billion valuation). This startup is GoTo (Gojek and Tokopedia) with a $18 billion valuation. Even before merging with Tokopedia, Gojek already has decacorn status with $10 billion valuation and its valuation gets even more skyrocketed when accumulated with Tokopedia. Currently, GoTo will be on their IPO stage this April.
Why Startups Thrive in Indonesia?
The rise of startups in Indonesia is due to a plethora of factors. Here are some of the contributing factors to why Indonesia became one of the startup centers in the world.
1. The Rise of the Young Generation
The first reason why Indonesia became one of the startup centers in the world is the growth of the young generation. According to Katadata, the Gen Z and millennial population in Indonesia reached 74.93 million in 2020. This means that the young generation accounts for 27,94% of the total population. The rise of the young generation contributes to the growth of startups. The young generation tends to bring innovative solutions to the current problem and a lot of them start building their startup.
2. The Rise of Digital Awareness
Ever since the Industrial Revolution 4.0, a lot of sectors started to integrate their business with technology. This shift is also due to the rise of digital awareness in Indonesia. The number of internet users in Indonesia has risen significantly since 2018. According to We Are Social, the internet users in Indonesia reached 204,7 million in 2022. This digitalization has changed the consuming behavior of society to also go online. This has invited a lot of startups to be established in Indonesia to bring digitalization to every sector.
3. The Rise of Investor
In recent years, we have observed the rise of local venture capitals in Indonesia. According to KrAsia, Indonesia have 129 local venture capital funds in 2021 and become the second-largest venture capital market in Southeast Asia. Digitalization invited more and more investors to inject their funding into Indonesian startups. Another reason is the innovative solution brought by Indonesian startups. Indonesia faces a lot of problems ranging from geographical disconnectivity, unemployment, and many more. Startups bring innovative solutions to the current problem in Indonesia with technology. An innovative solution is a key to success for a startup.
Are You Interested in Building a Startup?
We are here to help you navigate the never-ending challenges of building a startup. Gear Up is a startup brainstorming partner in Indonesia that provides one-on-one and catered support for the chosen startups in our network. We can help you find the correct business model, gain funding for your startup from venture capital, and scale up your startup. Join us to begin your startup journey.