Indonesia’s

Tech Startup Report 2016

DailySocial Annual Startup Report 2016
Indonesia Internet Market
 General Market Overview
 Internet & Mobile Overview
 E-Commerce Market
 Fintech Market

Investment Landscape
 2016 Funding Overview
 Investment Trends in 2017

Startup Landscape
 2016 in startup ecosystem
 On-Demand Services
 E-Commerce
 Fintech
 Issues & Prediction
 DailySocial.id is Indonesia’s fastest growing tech blog that focuses on

startups, entrepreneurship, business, lifestyle and tech consumer. This

report is a curated and aggregated information based on the Indonesia’s

tech scene, with the sole objective of helping both local and foreign

entities to understand the tech landscape better.

Research Team

Amir Karimuddin Adjie Priambada

Rama Mamuaya Yenny Yusra

Marsya Nabila Sharen Lovefyma

Indonesia
Internet Market
Going for mobile-only nation, not just mobile-first.
 • After China and India, ASEAN
has the world’s third-largest
labor force. It is also one of the

General Market Overview most open economic region

globally with total merchandise
export of over $1.2 trillion
annually, about 54% of regional
GDP and 7% of global exports.

• As one of the most populous

nation, Indonesia has a unique
position in ASEAN. Its 250+
million population is more than
double of the Philippines and
with almost $1 trillion GDP, it is
twice as big as next-largest
ASEAN economy, Thailand.

• The projected e-commerce

market for Indonesia and
Thailand in 2025 are expected
Source: eCommerceIQ; Oxford Business Group, The Report Indonesia 2017
to reach $157 and $52 billion
respectively.
General Market Overview (2)
• As the most populous nation and nation with the largest economy in ASEAN, Indonesia has

charted an impressive economic growth since overcoming the Asian financial crisis in the

late 1990s. The country’s gross national income per capita has steadily risen from $560 in

2000 to $3,374 in 2015. The GDP in 2015 has reached about $861.934 billion.

• According to a Boston Consulting Group (BCG) Report (2013), Indonesian’s middle and

affluent class (MAC) is set to double by 2020, reaching up to 141 million, with more than 9

million people are likely to enter the middle consumer class for each year.

• In 2015, the UN estimates the population in Indonesia will exceed by 270 million in 2025 and

290 million in 2045. The median age of the population is around 28 year old with 28.1% of

the population aged up to 14 year old and 16.9% between 15 and 24.

Source: Oxford Business Group, The Report Indonesia 2017; World Bank; BCG Report 2013
Internet
and Mobile
Market
Overview
Internet & Mobile Market
• In 2016, Indonesia’s internet users have reached around 132.7 million, a
51.8% increase from 2014 with:

• 53.6% are between 25 to 44 years old,

• 28% are 45 years old and older,

• 18.4% are between 10 to 24 years old.

• Indonesia has over 326.3 million mobile subscription (126% population).

Based on TNS/Google smartphone research, 71% respondents choose
smartphone as main device for internet access.
Source: APJII 2016; We Are Social; TNS/Google Smartphone Research Indonesia
 Devices
Used
Source: APJII 2016
Mobile & Desktop
47.6%
Mobile
47.6%

Desktop
1.7%
Internet Access
• According to Akamai’s State of
the Internet Q3 2016 Report,
Indonesian’s internet speed
(IPv4) ranks the 63rd globally
with average speed of 6.4 Mbps,
a 115% increase compared to the
same period in the previous
year.

• 64% of internet users in

Indonesia, however, still
experience similar or below 4
Mbps connectivity.
Source: Akamai’s State of the Internet Q3 2016 Report
Internet Service Preference
69.9% 13.3%
11.2%
Mobile Wi-Fi
Office Wi-Fi
Internet at Home

2.2% 1.6%
0.9%
University Cyber Cafe
Coffee Shop
Facility (warnet)

Source: APJII 2016;

 Smartphone Penetration

2013 2014 2016

14% 28% 43%

Source: TNS/Google Smartphone Research Indonesia

Internet Access (4G/LTE)
• Currently only 2% of the
Indonesian population
uses the 4G/LTE network.
By 2018 it is predicted to

grow to 14%
Source: Ericsson
 Ice Cream
Android as
Nougat
Gingerbread Sandwich 2.07%
and under 3.15%
3.73% Honeycomb
1.16% Favorite Platform
• Android is the most popular platform for
smartphone in Indonesia. According to
Statista’s compilation, in July 2016, Android
holds 70.80% of country’s mobile operating
Marshmallow Lollipop
14.18% 31.51% systems market share.
• In Q4 2014, Baidu found out that 80.10 % of
Indonesian consumers use older OS version
than 4.4 (KitKat). This number had dropped
Jelly Bean
19.90% to 59.20% in Q2 2015.
KitKat • Based on DailySocial’s Android Behavior
24.30%
Survey 2016, respondents who still use
Android 4.3 (Jelly Bean) or older are
accounted at 27.94%.
Source: Statista; DailySocial Survey on Indonesia’s Android User Behavior 2016;
Baidu Data, Indonesia User, 2015
Time Spent (per Day) by Device

68 minutes 68 minutes
using web browser using apps on
on smartphone smartphone

52 minutes
using web browser
on computer

Source: TNS/Google Smartphone Research Indonesia

 Facebook is (still) the Social Media King
Facebook 84.60%

Instagram 66.70%

Twitter 28.00%

Path 26.00%
• According to JakPat Survey on
Google+ 18.50% Social Media Trend in Q3 2016,

Other Option 7.90% Facebook remains as the most

6.80% popular social media in Indonesia
Snapchat
5.60% with 84.60% and among them, the
LinkedIn
user’s ratio are 81.6% are male and
Pinterest 3.70%
73.6% are female.
Tumblr 2.20%
Source: JakPat Social Media Trend in Q3 206
0.60% N: 1004
Periscope
E-Commerce
Market
E-Commerce Market Overview
• E-commerce industry growth is benefitting from the increasing

market coverage and middle class. Indonesia’s re-adjusted

e-commerce projected to $157 billion, bigger than the original

$88 billion estimated for all six SEA markets combined.

• Like in China ten years ago, those that invest in ecommerce early

and take a long-term, strategic outlook will end up owning the

biggest chunks of $238 billion — not $88 billion — e-commerce

goldmine in SEA.
Source: eCommerceIQ
E-Commerce Estimates for 2025
E-Commerce
E-Commerce E-Commerce %
Country Population GMV per
GMV of total Retail
Capita

Singapore 6.8m $5.4b 6.7% $789

Indonesia 294m $46b 8.0% $157

Thailand 72m $11.1b 5.5% $155

China 1,448m $3,120b 25.6% $2.155

US 350m $980b 14.4% $2.799

Source: eCommerceIQ
 Popular E-Commerce Brand
Source: Google Indonesia Q3 2016

#1 #2

#3 #4

#5
 User Experience
in E-Commerce

Respondents knows that the Internet could be

98.6% a place for buying and selling goods and services.

63.5% Respondents has online shopping experience.

Source: APJII 2016

E-Commerce in Mobile
31% of online shopping take place
on apps (on average)
Source: TNS/Google Smartphone Research Indonesia
36.70% Popular Payment Method
ATM remains as the most popular payment
method Indonesia. E-money, albeit hot items,
hasn’t really gather any traction yet.
Source: APJII 2016

14.20%

7.50%

2.50% 1.60% 0.70%

ATM COD Internet Credit Card SMS E-Money

Banking Banking
Fintech Market
Overview
Fintech Market Overview
• In 2016, only 36% adults in Indonesia have an account
at the formal financial institution 78%
• With the fast pace development of Indonesia’s tech
ecosystem, the growth of fintech players (detected)
for the past two years have reached 78% - the
highest number so far.

• Out of 140 fintech player detected, 43% focus in

payment sector.

7% 9%
6%

2006-2010 2011-2012 2013-2014 2015-2016

Source: Indonesia Fintech Association

Regulation in Fintech (1)
• With the exploding growth

of fintech industry, the OJK BI

government to push

fintech regulation forward

FinTech 2.0 Card based Payment
• Two authorized institutions
(digital banking, InsurTech, Instrument (APMK),

to create financial service FinTech in capital markets, E-Money, Money Telco,

venture capital, and online financing) Blockchain (Bitcoin)
regulation in Indonesia are

Central Bank (BI) and

FinTech 3.0 (independent
National Payment
Financial Services technology companies
Gateway (NPG)
and startups)
Authorities (OJK).

Source: DailySocial Indonesia Fintech Report 2016

Regulation in Fintech (2)
• OJK has launched the regulation (POJK) to regulate fintech P2P

lending in Indonesia.

• BI has launched two initiatives:

• BI Fintech Office (BI FTO) with regulatory sandbox initiative,

• PBI PTP, which regulates the ownership structure of the service

providers with two subjects, payment system service providers and

the parties that support payment transactions. It also regulates

minimum local fintech ownership

Source: DailySocial Indonesia Fintech Report 2016

Investment Landscape
Double it! Rise of the first unicorn
 2016
Funding
Overview
Funding Overview in 2016
• It’s an amazing year for the startup ecosystem in Indonesia. Industry’s growth become
more attractive, give more impact to society, and start to capture attention globally.

• Indonesia has seen the raise of its first unicorn, when Go-Jek secured $550 million
investment.

• Alibaba acquired Lazada for $1 billion, MatahariMall received fresh $100 million funding
round, Jualo secured investment twice in a year, and Tokopedia is rumored to raise
another round.

• Roughly, there are 104 investment activities in 2016, directly or indirectly. These
activities include activities of local capital owners investing in foreign startup,
investment in foreign startup which has been already operating in Indonesia, and
investment in foreign startup that will expand to Indonesia.
Local Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Local: KlikDaily, LocalBrand, 4Doctor, HipCar,
xwork, Ahlijasa
GnB Accelerator Accelerator Indonesia
Foreign: -

Local: Minutes Barber, Trax Center, Kartoo, Sonar

MDI Ventures Corporate VC Indonesia
Foreign: Ematic, Red Dot Payment, aCommerce

Sinar Mas Digital Local: Snapcart, HappyFresh, Orami

Ventures [SMDV] Corporate VC Indonesia
Foreign: Omise

Local: Fabelio
Venturra Capital Corporate VC Indonesia
Foreign: iPrice Group, Carro, kFit

Local: HaloDoc
Startup
Blibli Indonesia
Company
Foreign: -
Local Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Local: Qontak, Orori
Indonusa Dwitama Finance Indonesia
Foreign: -
Local: Goers
Mahaka Media Media Indonesia
Foreign: -
Local: KerjaDulu
MNC Media Indonesia
Foreign: Paktor

Media Indonesia Local: Kudo

EMTEK
Foreign: -
Local: HaloDoc
Startup Company Indonesia
Go-Jek
Foreign: -

Local: Blanja
Strategic Investment
Telkom Metra Indonesia
Company Foreign: -
Local Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Telco & Local: Tukang, SquLine, Qlue

PT. Prasetia
Infrastructure Indonesia
Dwidharma
Company Foreign: BonAppetour

Local: elevenia
XL Axiata Telco Company Indonesia
Foreign: -

Local: Jualo, Asmaraku, FinAccel [Kredivo]

Alpha JWC Venture Venture Capital Indonesia
Foreign: Carro, Funding Societies [Modalku
Parent], SpaceMob Co-Working Space

Local: -
Celebes Capital Venture Capital Indonesia
Foreign: Jirnexu

Local: Seekmi, MokaPOS

Convergence Venture Venture Capital Indonesia
Foreign: NIDA Rooms, e27, Helpster
Local Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Local: Touchten
Discovery Venture
Indonesia
Nusantara Capital Capital Foreign: -

Venture Local: IDN Media

GDP Venture Indonesia
Capital Foreign: Garena

Venture Local: Konsaato, Qlapa

Grupara Indonesia
Capital Foreign: -

Venture Local: Qlapa

Ideosource Indonesia
Capital Foreign: -

Venture Local: Investre

Kejora Indonesia
Capital Foreign: Compare 88 [Cek Aja Parent]
Local Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Venture Local: Seekmi

Kinara Indonesia
Capital Foreign: -
Venture Local: Agate Studio, Jojonomic, Gadjian
Maloekoe
Capital Indonesia
Ventures Foreign: -

Venture Local: Talenta

Skystar Capital Indonesia
Capital Foreign: Carro
Foreign Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Local: Itemku, Fabelio, FinAccel [Kredivo],

500 Startups Venture Capital USA
iGrow, Orori, Alodokter

Anthill Ventures Accelerator India Local: Travellio

Ardent Capital Venture Capital Thailand Local: Snapcart, Orami

Asia Pacific Internet
Incubator Singapore Local: LYKE
Group [APACIG]
Balancop Ventures Venture Capital Tiongkok Local: Seekme

Beenos Partners Venture Capital Japan Local: Cermati

Capital Group Venture Capital USA Local: Go-Jek

Clermont Group Venture Capital Singapore Local: HaloDoc

CyberAgent Ventures Venture Capital Japan Local: Seekmi

DST Global Corporate VC Rusia Local: Go-Jek

Foreign Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Local: Medico, Rekruta, Limakilo, MokaPOS,
East Ventures Venture Capital Singapore Loket, iGrow, Eragano, Jojonomic, Cicil, Jurnal,
Talenta, Kargo, Orori, IDN Media, Cermati
eBay e-commerce USA Local: Blanja
Elixir Capital Private Equity Firm USA Local: KokikuTV
Endeavor Catalyst ? ? Local: HappyFresh
European Funds ? ? Local: EasyPay

Farallon Capital
Venture Capital USA Local: Go-Jek
Management

Fenox VC Venture Capital USA Local: Jurnal, Talenta, Jojonomic, MokaPOS

Formation Group Venture Capital USA Local: Go-Jek

Global Founders Capital Venture Capital Germany Local: Qlapa
Gobi Partners Venture Capital China Local: Orami, PicMix, Travellio
Foreign Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Golden Gate Ventures Venture Capital Singapore Local: Alodokter, Jojonomic, Gadjian

Gunosy News Curation Japan Local: Kurio

HV Holtzbrinck Ventures Venture Capital Germany Local: LYKE

IMJ Investment Partners Venture Capital Singapore Local: Asmaraku, Fabelio, Orori

Jungle Ventures Venture Capital Singapore Local: FinAccel [Kredivo]

K Cube Ventures Venture Capital South Korea Local: Cashtree

KKR & Co. Private Equity Firm USA Local: Go-Jek

Korea Investment Partner Private Equity Firm South Korea Local: Cashtree

Lionrock Capital Family Investment Group Singapore Local: Jualo

Microsoft Tech Company USA Local: Kelase

General Trading &
Mitsui & Co Japan Local: MatahariMall
Investment Company
Foreign Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

Entertainment
MNM Creative ? Local: IDN Media
Company
New Wealth Capital ? ? Local: Lakupon

North Base Media Venture Capital USA Local: IDN Media

Northstar Group Venture Capital Singapore Local: Go-Jek, MokaPOS

NSI Ventures Venture Capital Singapore Local: Jualo, Go-Jek, HaloDoc

Rakuten e-commerce Japan Local: Go-Jek

Samena Capital Venture Capital SAMENA Local: HappyFresh

Sequoia Capital Venture Capital USA Local: Go-Jek

Mobile Solution
SK Planet South Korea Local: elevenia
Provider
Sovereign’s Capital Venture Capital USA Local: Loket
Foreign Investor List
Source: DailySocial, Tech in Asia, Crunchbase

Investor List Categories Based Portfolio

SPH Media Fund Venture Capital Singapore Local: Snapcart

Susquehanna International
Finance Firm USA Local: Jualo
Group (SIG)

Tian Gu ? ? Local: Travellio

Velos Ventures Venture Capital USA Local: Orami

Ventek Ventures Venture Capital USA Local: Seekmi

Vertex Ventures Venture Capital Singapore Local: HappyFresh

Warburg Pincus Private Equity Firm USA Local: Go-Jek

Wavemaker Partners Venture Capital USA Local: MokaPOS, Snapcart

IPO OTC Market Capital Market USA Local: KinerjaPay

SPH Media Fund Venture Capital Singapore Local: Snapcart

 Undisclosed Investors
Source: DailySocial, Tech in Asia, Crunchbase

Startup Investor

GDILab Undisclosed

Orami Undisclosed

Conversion8 Undisclosed

Pinjam Undisclosed

PicMix Undisclosed
Angel Investor
• 8 local angel investors detected in 2016 and one of
them is ANGIN (Angel Network Indonesia).

• ANGIN, with 6 angel networks in ASEAN, create AAA as

the new angel platform in ASEAN to help startup
expanding their business in SEA region.

• 9 foreign angel investors detected in 2016.

Local Angel Investment List
Source: DailySocial, Tech in Asia, Crunchbase

Local Angel Investor Funding in

ANGIN LandMapp, Summit Healthcare, Qontak

Andy Zain GDILab, Konsaato

Budi Setiadharma Qlapa, Jurnal

Bunga Citra Lestari Konsaato

Diono Nurjadin Kargo

Henry Tjiandra Djaya FindTukang

Kevin Mintaraga Tukang

Turochas Fuad e27

Foreign Investment For Local Startup
Source: DailySocial, Tech in Asia, Crunchbase

Investor Funding in

Amar Goel FinAccel [Kredivo]

Asraf Sinclair Konsaato

Jerry Yeu FinAccel [Kredivo]

Mathieu Harding (Angel) FinAccel [Kredivo]

Prashant Kirtane FinAccel [Kredivo]

Lim Dershing Alodokter

Zhenzhen Sun Travellio

Eduardo Saverin Orami

Unknown Singapore Angel Investor Ahlijasa

 Affordable Access
Initiative
2016 Local Tech 1%
Pre-Seed
IPO
1% 3%
Investment: Private
Equity
2%

Round Undisclosed
• In 2016, there are 71 18%

investments for local

Seed
40%
startups. 40% of them are
Series B
4%
seed funding, while 24% are
Series A
Series A 24%

• One IPO (OTC Markets in the

U.S.) by KinerjaPay
Source: DailySocial, Tech in Asia, Crunchbase Pre-Series A
7%
 Job Portal
2016 Local Tech IoT
1%
Supply Hospitality
1% Marketing Chain
Investment: Crowdsourcing
1% 1%
1%
Event Service
Sector 3%
1% Music
3%
• By the sector, Education
3%
e-commerce, fintech Social Media
3% E-Commerce
and on-demand
Edu Tech 21%
services remains as the 3%
most attractive sector
HR SaaS
for capital owner 4%
Game
• In e-commerce side, 4% Fintech
20%
we have seen more Agriculture
4%
players double down
Analytics
the investment such as On-Demand
4%
13%
MatahariMall, elevenia, Online Media
4%
Jualo, and Blanja. Medical
5%
Source: DailySocial, Tech in Asia, Crunchbase
2016 Local Tech Investment: Q1-Q4
Most Indonesian startup snatched
investment in Q2 2016, with 29
activities detected.

29

19
14
9

Q1 Q2 Q3 Q4
Source: DailySocial, Tech in Asia, Crunchbase
Most Active Local Venture Capitals
With 7 activities announced, 4 investments

to local startup and 3 investments to

foreign startup, MDI Ventures emerges

as the most active local VC in 2016.

Following with 6 activities announced,

3 for local and 3 for foreign, Alpha JWC

Ventures sit in second place as the

most active local VC in 2016.

Most Active Foreign Venture Capital

With 15 investment activities, East

Ventures again emerged as the

most active foreign VC in Indonesia

With 6 investment activities, 500

Startups came second as the most

active foreign VC in Indonesia

18
Origins of Foreign Investor
Most investors (18) are based in USA, while
Singapore-based VCs in second place with 9
investors
9

6 6

3
2 2
1 1 1 1
 Largest Investment News in 2016
Secured by Go-Jek, the biggest received by local startup in 2016, establishing
$550 M Go-Jek as Indonesia’s first unicorn. In addition, Go-Jek biggest competitor Grab
also secured Series F funding worth of $750 M.

The largest funding received by e-commerce company in 2016 secured by

$100 M MatahariMall. Tokopedia rumored to raise $148 M, but no confirmation and
announcement

$600 M Rumored to be poured by Amazon for its Indonesia’s expansion.

 Others (Revenue Generating Business),
10%

E-Commerce, 10%

Investment
Trend in
Fintech,
2017 SaaS, 20% 60%

From our survey to investors,

60% say fintech will be the next
investing trend in 2017.
Recent Announced Funds
Source: DailySocial, Tech in Asia, Crunchbase

Investor Capital Region

Kejora $80 M SEA

$45 M
Unitus Impact SEA and India
[$500.000 - $2 million/company]

Gobi Partner & MAVCAP $14.5 M SEA

MDI Ventures $25 M Global & SEA
SEA, Japan, South Korea, Hong Kong,
Golden Gate Ventures $60 M
Taiwan
Undisclosed Amount in Total
KK Fund [Target $400-$500 K for 13 SEA, Hong Kong, Taiwan
startups]
$50 M
500 Startups [500 Durians] SEA
[$50-$150 K for 200 startups]

Discovery Nusantara Capital $10 M SEA

Convergence Ventures $30 M SEA

Mandiri Capital $37,1 M Indonesia
Jungle Ventures $100 M Asia, India, Singapore
Indonesia Startup
Landscape 2016
More mature, exit, and exploding
The Hype
On-Demand
Fintech E-Commerce
Services

• Double the
• First Unicorn • Exploding!
Investment
On Demand Service (1)
• Following $550 million blockbuster investment lead by KKR & Co and Warburg Pincus in

August 2016, Go-Jek continue to build platform to facilitate “Anything On-demand”, like

Go-Car, Go-Auto, Go-Tix, Go-Med, and Go-Pulsa. In total Go-Jek manages 14 verticals.

Go-Jek’s major move is the development of its own mobile wallet, Go-Pay, to facilitate

the payment.

• Go-Jek’s leading service, Go-Food, established as market leader for food delivery service

and leaving FoodPanda and Klik-Eat behind. FoodPanda Indonesia closed its service in

October 2016.

• On-demand service marketplace is blossoming. Seekmi, Jasaku, Ahlijasa, FindTukang,

Carijasa, Tukang, Monolia, and others come to surface in 2016 to provide similar services,

but different in matchmaking process and service focus.

On Demand Service (2)
• In 2015, YesBoss and HaloDiana were the hottest startups in on-demand space. In

2016, HaloDiana was shut down on April, while YesBoss pivots to B2B model and

rebranded as Kata.ai on October.

• A new chatbot service named BangJoni launched in June 2016. The service can be

accessed from popular messaging app, like Telegram and Line. BangJoni provides

many on demand services, like phone credit top up, travel, concert, airplane, taxi,

and many more.

• Chatbot’s bussiness opportunity in Indonesia seems promising, but but based on

YesBoss’ decision to pivot, the nearby future should be focused on B2B market, not

B2C.
Fintech Services (1)
• Since the establishment of Indonesia Fintech Association in September 2015, the

growth of fintech players for the past year reached 78% with around 140 fintech

player detected by the end of 2016. 43% of them are in payment sector.

• On regulator side, both Bank Indonesia (BI) and Financial Services Authorities (OJK)

launched many initiatives to secure fintech ecosystem, such as POJK, PBI PTP, and

BI Fintech Office. Indonesian Chamber of Commerce & Industry (KADIN) estimated

fintech investment will reach $8 billion by 2018.

• The most popular fintech sector is peer-to-peer lending and payment, with OJK

recently released new regulation specifically to regulate fintech lending

Fintech Services (2)
• Notable investments in Fintech services:

o Jojonomic grabbed $1,5 M funding,

o Compare88, parent company Cek Aja, secured Series B funding from Telstra,

o Cermati received Series A funding worth $1,9 M,

o MDI Ventures Lead Red Dot Payment funding,

o Funding Societies, parent company Modalku, snatch $7 M funding

o Investree received undisclosed series A funding from Kejora,

o KinerjaPay received $2 M from IPO,

o FinAccel, parent company Kredivo, secured $1,1 M seed funding,

o Cicil, iGrow, and Eragano secure undisclosed seed funding lead by East Ventures,

o Moka obtained $1,9 M Series A funding

o UangTeman secured Pre-Seed investment,

o EasyPay received $15 M funding from European Funds.

E-Commerce (1)
• Indonesia’s re-adjusted e-commerce projection is $157 billion, bigger

than the original which is $88 billion estimated for all six SEA markets

combined.

• The entry barrier to join general marketplace competition is too high

(in term of investment amount), many new players focus on niche

segment
E-Commerce (2)
• Notable investments in e-commerce services:

o Kudo received investments led by EMTEK with eight digit funding,

o Orori obtained Series A funding,

o Jualo secured two investment round in a year

o HappyFresh grabbed Series B funding from SAMENA Capital,

o Lyke received Series A funding $4 million from Holtzbrinck Ventures,

o Fabelio grabbed series A funding $2 million from Venturra Capital,

o MatahariMall announced $100 million funding round led by Mitsui.

Issues and Challenges
Based on survey to startup Government
Regulation
13.60%
founders, the challenges in

2017 are pretty similar to

previous year. Talent Capital

Availability
acquisition is still considered 36.40%

the main issue when

Talent Acquisition
50.00%
building startup
Issues and Challenges: Talent (1)
• Talent still become the big issue for tech startup in Indonesia.
Digital savvy professional across function with specific
knowledge still hard to find.

• According to Deloitte Fintech Survey 2016, as companies grow,

their need of talents will change. Younger company (0-2 y/o)
have greater need (83%) for Data and Analytics talents, but
companies that have been operational for longer duration (>4
y/o) have greater need (90%) in Risk Management talents.
Issues and Challenges: Talent (2)
• Talent war & poaching has been a common practice among
well funded startups where they can pay up to 2-3x salary +
signing bonus in order to poach people and grow their tech
team.

• The root of problem actually come from academic sector

where universities, until now, seems still didn’t find a way to
produce enough tech talents with ambition and drive to be
able to work at high-pace startup companies.
Issues and Challenges: Capital
• Although capital availability still become one of the biggest

problem for Indonesia startup, ironically, investors has been

saying that finding a good founder/startup is very hard as

well. This proves the disparity between investors and

founders. A lot of founders are still not ready to be invested,

although this number is decreasing quite rapidly.

Issues and Challenges: Regulation (1)
• Although Indonesia startup ecosystem become more mature in

2016, the regulation still in way to catch up the growth. Still, the

government shows good sign that they will help the ecosystem

grow and pushing the regulation to be clearer.

• The example is “Paket Kebijakan 14”, which is the realization for

Indonesia e-commerce roadmap.

Issues and Challenges: Regulation (2)
• In Fintech sector, OJK and BI has make some moves too:

 OJK has officially launched the regulation (POJK) to regulate

fintech P2P lending in Indonesia by the end of 2016.

 BI has launch two initiatives, BI Fintech Office (BI FTO) with

regulatory sandbox initiative and PBI PTP for regulating
ownership structure of service providers.
Founders Maturity
• Startup founders realize they need to expand the business by either
selling the company to another related company, or buying it and
doing acquihire.

• Many accelerator programs (by government or private) create a good

startups with a good framework and knowledge for doing business.
Very helpful for a startup founders to focus on product and user
acquisition. Startup from accelerator program usually get bigger
chance to secure funding round.

• Series A founders are easier to get another funding round, since they
come up with strong business model and good traction.
Merger and Acquisition (1)
• With five acquisitions, Go-Jek highlighted M&A movement in
2016:

o In February 2016 Go-Jek acquired two Indian startups, C42

Engineering and CodeIgnition,

o In September 2016 Go-Jek acquired Indian startup, Pianta,

o In October 2016 Go-Jek is said to acquire Indonesian

startup, MVCommerce’s PonselPay for e-money license,

o In November 2016 Go-Jek acquired Indian startup,

Leftshift.

Source: DailySocial, Tech in Asia, Cruchbase

Merger & Acquisition (2)
• In regional scope, Lazada has made some big
moves in M&A space
o In April 2016, Alibaba entered into agreement to acquire
controlling stake in Lazada. Total investment by Alibaba
approximately reached $1 billion.

o In November 2016, Lazada acquired Singapore based

online grocery startup Redmart for $30-40 million.
Merger and Acquisition (3)
• Notable M&A in 2016:

o Kiper Cloud acquired by Sleekr in November 2016,

o Moxy and Bilna merged into MoxyBilna in January 2016 and rebranded

as Orami in February 2016,

o RoomToday acquired by NorthCliff Indonesia in September 2016,

o Groupon Indonesia acquired by Malaysia’s Kfit in June 2016

o Lippo Group acquired Singapore’s All Deals Asia in April 2016,

o MakanLuar acquired by Singapore’s Chope in April 2016,

o Philippines’ HeyKuya acquired by YesBoss in March 2016.

Source: DailySocial, Tech in Asia, Crunchbase
Conclusion (1)
• Financial technology were
exploding in 2016 and will
keep growing in 2017.

• On-demand services has

changed the landscape in
2015, and it keep getting
stronger with Go-Jek as
country’s first unicorn
startup.
Conclusion (2)
• M&A will continue in 2017 since
the ecosystem and market will
be more matured.

• Angel investors have cooled

down and consolidated. ANGIN
co-founded AAA as angel
investor platform in ASEAN to
help startup expanding their
business in the region
Conclusion (3)
• Government has
displayed positive efforts
to help push the growth
of digital economy, e.g
e-commerce roadmap in
“Paket Kebijakan XIV”,
POJK Fintech Lending,
and the establishment of
Bank Indonesia’s Fintech
Office.