Digital Investment Trend Analysis in Indonesia: Startups, Infrastructure, and Ecosystems


December 22, 2025


Indonesia's digital world is entering a primary transformation phase, driven by rapid technology adoption, strong government support, and increasing startup innovation. This growth opens up industrial sector opportunities, particularly for professionals in procurement, supply chain, and import management.

According to ANTARA news, based on research by Google, Temasek, and Bain & Company, Indonesia's digital economy reached USD 90 billion in 2024, up 13 percent from the previous year. This figure confirms Indonesia's position as the largest digital economy in Southeast Asia.

These numbers continue to grow and show positive developing trends. So, what is the digital investment trend in Indonesia?

Indonesia Startup Ecosystem: Wave of Innovation and Investment

According to the StartupBlink Global Startup Ecosystem Index 2025, Indonesia now has 918 active startups, representing about 16 percent of total startups in Southeast Asia. Despite a 10.3 percent decline over the past year due to global economic uncertainty, Indonesia's startup ecosystem remains strong with 8 unicorns operating across various sectors.

Jakarta, as the national innovation hub, ranks 52nd globally and is home to major unicorns, including Gojek, J&T Express, Xendit, and Traveloka.

Overall, Indonesia's startup ecosystem fundamentals remain solid. Over the past 10 years, total investment has exceeded USD 38.53 billion, equivalent to 21.67 percent of total funding in Southeast Asia. This figure shows that, despite global pressures, the potential for growth and the attractiveness of digital investment in Indonesia remain very strong.

Dominant Sectors and Investment Trends

Three main sectors dominate the Indonesian startup ecosystem:

  • Transportation (29 startups) - Ranked 30th globally with a focus on logistics optimization and last-mile delivery solutions.
  • Foodtech (65 startups) - Ranked 31st globally, covering food delivery, supply chain management, and agritech innovations.
  • E-commerce & Retail (142 startups) - Ranked 33rd globally, with video commerce taking 22 percent share of total e-commerce GMV in 2024.

Interestingly, investment trends are shifting from consumer-focused to B2B and enterprise solutions. This opens up significant industrial sector opportunities, especially in:

  • Efficient digital procurement platforms
  • B2B marketplaces for industrial goods
  • Logistics tech for warehouse optimization
  • Industrial IoT solutions for smart manufacturing

According to data from the Ministry of Coordinating Economic Affairs, Indonesia ranks second in ASEAN digital investment in 2023 with USD 22 billion, surpassing Vietnam (USD 18 billion) and Malaysia (USD 17 billion).

Expanding Digital Infrastructure

Indonesia's digital infrastructure continues to develop and serves as an essential foundation for accelerating digital transformation. Internet penetration has now reached 79.5 percent with over 221 million users, supported by the construction of thousands of 4G Base Transceiver Stations (BTS) over the past year. This development shows that digital access in Indonesia is increasingly widespread and ready to drive various innovations.

1. Connectivity and Cloud Layer

The development of 5G networks, the expansion of fiber optics, and the construction of data centers are now among the main national priorities. According to Second Talent, Microsoft has announced an investment of USD 1.7 billion to build new cloud and AI infrastructure in Indonesia, while Nvidia is partnering with Indosat to invest USD 200 million in building an AI center in Surakarta.

Cloud computing adoption across various industrial sectors continues to increase. The Indonesian IT Services market is projected to reach USD 10.20 billion by 2030, with annual growth of around 12.31 percent. For Import Managers, improvements in digital infrastructure quality mean smoother integration with port systems and increasingly digitalized customs processes, thereby accelerating clearance and cutting lead times.

2. Digital Financial Infrastructure

Indonesia's digital payment systems, like QRIS (Quick Response Code Indonesian Standard) are also developing rapidly. This technology is now internationally connected with Japan, the  UAE, China, India, South Korea, and Saudi Arabia. Online payment transactions increased 19 percent in 2024, with a total gross transaction value reaching USD 404 billion.

For B2B transactions, digitalization of trade finance opens access to faster and more competitive financing. Fintech lending recorded outstanding loans of Rp 77.02 trillion in 2024, up 29.14 percent YoY, far outpacing traditional bank credit growth of 6.9 percent.

3. Logistics and Distribution Networks

Smart warehouses and automated fulfillment centers are beginning to develop in many major cities. Logistics platforms like Waresix are already leveraging AI to optimize fleet management and improve delivery accuracy. Integration with port systems and the digitalization of customs processes also provide real-time visibility, which is crucial for modern supply chains.

The implementation of Industry 4.0 and Industrial IoT brings new efficiencies to the industrial sector. Sensor networks and predictive maintenance systems help reduce downtime and increase manufacturing productivity. This opens up increasingly ample industrial opportunities as demand for automation and technology grows.

Government Support: Conducive Ecosystem

1. Strategic Policies and Featured Programs

The Indonesian government has set an ambitious target: the digital economy will contribute 20 percent to GDP by 2045. The "Making Indonesia 4.0" strategy and "Digital Indonesia Roadmap 2021-2024" serve as implementation guides. Here are some concrete programs underway:

  • 1000 Startup Digital - Structured support to transform ideas into viable products with intensive mentorship.
  • NextICorn - Connecting high-potential startups with global investors, targeting the birth of 100 new unicorns.
  • Startup4Industry - Specifically promoting the adoption of Industry 4.0 technology in manufacturing and industrial sectors.

Tax incentives for digital enterprises and the Online Single Submission (OSS) system simplify business registration, making it up to 70 percent faster.

2. Digital Talent Development

Indonesia has 3.1 million developers on GitHub (the third largest in the Asia Pacific). Their contributions to generative AI projects grew 213 percent in 2023. However, the talent gap remains a challenge: the need for 9 million digital talents by 2030, while supply is only 7 million.

Therefore, university-industry collaborations and upskilling programs continue to be expanded to close this gap. For companies, this presents strategic opportunities for investment in talent acquisition and capability-building programs.

3. Mature Regulations

The implementation of the Personal Data Protection Law (UU PDP) and development of a national AI roadmap demonstrate a commitment to a sustainable regulatory framework. Bank Indonesia is also launching Digital Rupiah (CBDC) in phases starting in 2025 for wholesale transactions.

Strategic Implications for Procurement and Supply Chain

Digital transformation brings profound implications for procurement and supply chain professionals. Technology adoption is no longer an option, but a necessity to maintain competitiveness.

1. Digital Transformation Roadmap

Digital readiness assessment is a crucial first step. Evaluating infrastructure, people capability, and process maturity helps map gaps and priorities. A phased approach to technology adoption, starting from quick wins such as digital payment integration and visibility tools, allows organizations to adapt while building capabilities.

Change management in procurement functions is essential. Involving teams from the start, providing adequate training, and clearly communicating value propositions ensure high adoption rates.

2. Vendor Selection in the Digital Era

Supplier evaluation criteria must evolve beyond traditional price and quality. Digital capability, API integration readiness, and data security become essential considerations. Partnerships with startups require special due diligence, considering financial stability, technology roadmap, and customer references.

Risk management with emerging vendors requires a more sophisticated approach. Supplier diversification, contingency planning, and regular performance monitoring become essential practices.

3. Competitive Advantages

Digital procurement platforms can reduce purchasing costs by 10-15 percent through price transparency, automated bidding, and consolidation opportunities. Real-time supply chain visibility enables faster responses to disruptions and demand fluctuations.

Data-driven decision-making for inventory management optimizes working capital. Predictive analytics helps forecast demand more accurately, reducing the risk of stockouts and obsolescence. Integration with logistics partners provides end-to-end visibility that is highly valuable for Import Managers in managing international shipments.

For comprehensive logistics solutions that leverage digital technology, Uniair Cargo offers integrated services with real-time tracking capabilities to support your supply chain transformation.

Future Trends and Emerging Opportunities Transforming the Industrial Landscape

1. Artificial Intelligence Leading Growth

AI adoption has exploded, with 92 percent of knowledge workers using generative AI in their daily work. The projected contribution of AI to Indonesia's economy reaches USD 366 billion, equivalent to 12 percent of GDP by 2030.

AI implementation in supply chain management includes demand forecasting with over 90 percent accuracy, automated quality control that reduces defect rates by up to 40 percent, predictive maintenance for equipment that decreases downtime by 30 percent, and intelligent routing in logistics that optimizes delivery times by up to 25 percent.

2. Blockchain and Web3 Innovation

Blockchain opens up great opportunities for supply chain transparency and the implementation of smart contracts in B2B transactions, making them more efficient and secure. Indonesia is among the top 10 countries with the highest crypto adoption, recording 14.16 million registered investors as of April 2025 with 3.28 percent month-over-month growth.

Platforms like Indodax, with 5 million users, and TokoCrypto, with 4 million users lead the market, creating mature infrastructure for Web3 applications. Blockchain technology enables end-to-end product tracking, authenticity verification, and revolutionary automated payment settlement.

3. Green Technology Focus

Sustainability has become a top priority with surging demand for environmentally friendly solutions in business operations. Carbon tracking and reporting tools help companies measure carbon footprints accurately for ESG regulatory compliance. Circular economy platforms facilitate the reuse and recycling of materials in supply chains, reducing waste by up to 50 percent.

Renewable energy management systems optimize the use of renewable energy, while green logistics solutions reduce transportation emissions. Government digital services through 9 super-apps launching in Q3 2024 will create an integrated ecosystem, opening new opportunities in the green procurement sector.

Conclusion

Indonesia's digital investment trends show strong momentum toward transformation, driven by an innovative startup ecosystem, rapidly developing digital infrastructure, and increasingly robust ecosystem support. This combination of factors creates an ideal environment for opportunities in the industrial sector.

For Procurement Directors, Heads of Supply Chain, and Import Managers, this is a strategic moment to take concrete steps. Early adoption of digital technology provides advantages in cost efficiency, operational improvement, and market responsiveness speed.

Partnerships with the Indonesian startup ecosystem, investment in digital capability-building, and continuous learning will determine the organization's competitiveness moving forward. The opportunities are already present; what's needed is the courage to take first-mover advantage.

As a trusted player in Indonesia's logistics industry, Uniair Cargo has successfully handled a range of complex supply chain projects, from import management for industrial goods to specialized cargo handling to integrated logistics solutions. Cross-sector experience gives us a deep understanding of each client's unique needs. With a combination of operational expertise and digital technology, Uniair Cargo is ready to be your strategic partner in supply chain transformation.

FAQ

1. What are the main industrial sector opportunities from Indonesia's digital economy growth?

The biggest opportunities include B2B digital procurement platforms, logistics tech for warehouse optimization, fintech for trade finance, and Industrial IoT solutions for smart manufacturing. The transportation, foodtech, and e-commerce sectors show consistent growth with a total of 236 active startups.

2. How is Indonesia's position in the StartupBlink global startup ecosystem index, and what does it mean for investors?

Indonesia ranks 45th globally and 3rd in Southeast Asia in the StartupBlink Index 2025, with 918 active startups and eight unicorns. This position shows a mature ecosystem but still has room for growth, especially in underserved B2B and industrial tech sectors.

3. Why is the Indonesian startup ecosystem attractive for investment despite declining global funding?

Although funding fell 31.99 percent in 2024, fundamentals remain strong: a domestic market of 277 million people, digital economy growing 13 percent, second position in ASEAN digital investment (USD 22 billion), and consistent government support through incentives and infrastructure development.

Baca Juga : Investment Potential in Indonesia's Manufacturing Sector: Growth, Challenge...

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