Is Indonesia a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Indonesia has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Indonesia gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Indonesia

Funding is one of the most critical ingredients in building a successful startup – and Indonesia offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Indonesia's early-stage funding scene features active participation from notable VC firms like East Ventures, Alpha JWC Ventures, and AC Ventures, alongside corporate VCs such as MDI Ventures and SMDV. Angel investor networks also play a role, though specific prominent networks weren't explicitly named in the results. While government initiatives exist, accessing these programs can be challenging for founders. A significant hurdle is the notable decrease in overall startup funding, with a 75% drop in 2024 compared to 2023, and early-stage investments seeing a 32.18% decline in the same period according to a Tracxn report. This trend, coupled with challenges in investor readiness and valuation complexities, creates a competitive environment for startups seeking crucial seed and early-stage capital.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Indonesia has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Indonesia has a growing startup and innovation culture, particularly in cities like Jakarta, Bandung, and Yogyakarta. The ecosystem is characterized by increasing entrepreneurial activity, with a rise in tech startups addressing local challenges. Coworking spaces are prevalent across major cities, offering flexible workspaces for entrepreneurs and small teams. Numerous tech events, conferences, and meetups are held regularly, fostering networking and knowledge sharing. While the ecosystem is developing, early-stage founders can face challenges, particularly in securing funding. Support is available through government programs, incubators, and accelerators, some of which offer mentorship and resources. However, the quality of support can vary, and some programs may be more standardized. There is a recognized need for improved financial access and more tailored support for early-stage ventures, with some investors specifically targeting this group. The ecosystem is becoming more supportive, but early-stage startups may need to navigate various programs to find the specific assistance they require.

For many entrepreneurs, the energy and resources available in Indonesia can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Indonesia, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Indonesia is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Indonesia has a large, young population providing a significant talent pool for startups. Numerous educational institutions, including prominent universities like Universitas Indonesia, ITB, and UGM, are increasingly incorporating entrepreneurship into their curricula and establishing incubation centers to nurture startups. While there is a large workforce, a significant demand exists for digitally skilled talent, particularly in areas like software engineering, data science, and mobile development. The government and educational bodies are implementing programs to bridge this skills gap through vocational training and digital skill initiatives. Local talent supports entrepreneurial growth through their understanding of the domestic market and cultural nuances, which is crucial for business development and adaptation. However, challenges remain in talent scarcity in specific tech roles and retaining skilled employees. Collaboration between educational institutions, government, and the private sector is seen as vital for developing the necessary skills and fostering the startup ecosystem.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Indonesia can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Indonesia boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Indonesia's startup ecosystem is supported by a growing infrastructure including co-working spaces, accelerators, and incubators in major cities like Jakarta, Bandung, and Surabaya. These provide mentorship, networking, and sometimes seed funding. Access to funding has improved with local and international venture capital firms and angel investors. The Indonesian government actively supports the ecosystem through various initiatives. Programs like "1000 Startup Digital" offer structured support from idea to product, while "NextICorn" connects startups with global investors. "Startup Studio Indonesia" is a government-run accelerator. Initiatives like simplifying business registration and offering tax incentives also contribute to a more favorable environment. These resources collectively help startups navigate challenges and foster growth in the dynamic Indonesian market.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Indonesia. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Indonesia Be Considered the Best Place to Launch a Startup?

There’s no doubt that Indonesia provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Indonesia face several hurdles. Competition is intense, particularly in popular sectors like fintech and e-commerce. While the cost of living in major cities like Jakarta can be lower than in Western counterparts, operational costs, including potentially high borrowing costs, can be a challenge. Regulatory issues are significant, with complicated and lengthy licensing processes cited as a major problem. The absence of specific startup regulations and navigating various government bodies add complexity. Additionally, attracting foreign investment can involve specific requirements.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Indonesia or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Indonesia offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash