After years of explosive growth that positioned Indonesia as a rising star in Southeast Asia’s digital economy, the country’s startup ecosystem is now navigating a challenging recalibration. Once buoyed by aggressive funding rounds and rapid scaling, 2024 has brought a sobering shift that demands reflection and reinvention.

According to Tracxn’s Indonesia Tech Annual Report 2024, total startup investments in Indonesia plunged to just US$323 million—a dramatic 75 per cent decline from 2023’s US$1.3 billion, and a staggering 90.05 per cent drop from the ecosystem’s peak of US$3.24 billion in 2022.

These numbers reflect a tightening of investor sentiment and a maturing ecosystem forced to confront the limitations of its earlier momentum.

The current climate signals an inflexion point. For founders and investors alike, the message is clear: long-term success cannot rely solely on capital access. The shift is towards sustainability—developing resilient operations, cultivating loyal customer bases, and building viable paths to profitability.

Startups are being challenged to rethink growth. Instead of chasing valuations or headcount milestones, the emphasis is on fundamentals—strong governance, lean operations, and business models designed to withstand market volatility.

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This transition may feel like a return to basics for many, but it also represents a necessary evolution.

This recalibration also empowers Indonesian founders to build with greater intentionality. With fewer distractions from fast capital and frothy valuations, startups can double down on purpose-driven innovation and more deeply understand the markets they serve.

The power of global connectedness

While internal discipline is vital, external engagement is equally essential. Indonesia’s future as a startup hub will depend on domestic reform and its integration into the global startup ecosystem.

“Connecting to founders in other ecosystems and growing a wider, more global network is a key source for entrepreneurs,” writes Marc Penzel of Startup Genome in a blog post. “Being connected means a greater ability to tap into the global flow of ideas and know-how—it allows a founder to scale his or her knowledge and access.”

Global connectedness opens the door to best practices, cross-market collaboration, and broader investor exposure. Indonesian startups that proactively build bridges with peers in Singapore, India, the US, or Europe will gain valuable insights into navigating economic cycles, managing scale, and accessing alternative funding structures.

Moreover, this interconnectedness fosters innovation through diversity, exposing founders to new ways of thinking, partnering, and problem-solving. In a period marked by economic recalibration, such exposure can mean the difference between stagnation and reinvention.

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To explore these pivotal themes, Echelon Singapore 2025 will host a must-attend fireside chat titled “The Next Chapter: Strengthening Indonesia’s Startup Ecosystem for Long-Term Growth” on Wednesday, 11 June, from 10:00 AM to 10:30 AM at the Forge Stage.

Moderated by Michael Smith, Oracle’s Cloud Evangelist, the session will feature Nicko Widjaja, CEO of BRI Ventures. With a track record of catalysing some of Indonesia’s most notable startups, Widjaja will offer candid insights into what must change and endure for the country’s entrepreneurial ecosystem to rebound and thrive.

This conversation will unpack the current data and trends and highlight actionable strategies for founders, investors, and ecosystem builders committed to steering Indonesian innovation towards resilience and renewal.

Suppose you are a founder seeking a roadmap through turbulent times. In that case, whether you are an investor looking to align with sustainable growth or a policymaker eager to support a stronger innovation economy, this session offers essential insights.

Join us at Echelon Singapore 2025, held at Suntec Singapore on 10–11 June, and be part of the dialogue shaping the future of Indonesia’s startup ecosystem—and Southeast Asia’s tech evolution.

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Image Credit: Andreas Bayu on Unsplash

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