Industries of Opportunity for Indonesian Startups in 2024
This article has been translated and summarized by CORIM Indonesia as part of our highlights of services. We has not completely checked the accuracy and admits no responsibility for the content.
By forbes.com
Insight | January 08, 2024
Indonesia, Southeast Asia's largest and fastest-growing market, attracts entrepreneurs due to its growing economy and over 3,000 digital nomads in 2022. As the CEO of a financial technology startup company, digital entrepreneurs should explore new product areas.
Financial Technology And E-Commerce
Indonesia's financial technology industry is highly financed, with half of venture capital investments in payment startups in 2020. With a large population and 64.2 million micro, small, and medium enterprises, the country has over 300 fintech startups. However, cash remains popular, and only half of the population has an account at a financial institution.
Transportation
Indonesia, with over 17,000 islands, faces logistical challenges and potential for electric transport due to abundant resources and a strong manufacturing industry. The demand for electric vehicles is expected to grow, with sales predicted to reach 21 million by 2025. The Indonesian government has invested in this segment.
Renewable Energy Sources and Waste Management
Indonesia has potential for renewable energy sources like geothermal, hydro, and solar power, with annual energy efficiency investment expected to reach $10 billion by 2030. However, traditional coal generation and plastic waste production contribute to air pollution, particularly in Jakarta.
Education Technology
Indonesia has a high number of students and institutions, but 42% of 25-34-year-olds lack upper secondary qualifications, a significant gap from the OECD average. By 2030, 113 million Indonesians need professional retraining.
Healthcare
The Indonesian government introduced a universal healthcare program in 2014, covering 86% of the population. This has increased healthcare access, creating growth opportunities for hospitals and medical businesses. However, challenges include shortages, inaccessibility, and unequal care. The pandemic has accelerated digital medicine growth, making telemedicine an attractive investment.
Halal Goods and Technology for Muslim Consumers
Indonesia, a Muslim-majority country, is a major market for halal goods and services due to its experience in Islamic banking, fintech, and manufacturing capabilities.
Where to Start
Indonesia remains a terra incognita for Western entrepreneurs due to its remoteness and cultural diversity. To navigate the local venture landscape, it's recommended to find a reliable local partner or co-founder, and find the right "center of gravity" in Jakarta, where many prospective partners and investors are. Focusing on high-potential niches like fintech, logistics, or renewable energy, and following simple rules of thumb can help incoming tech entrepreneurs find better positions in Indonesia.