A recent study by technology giant Google and United States-based global management consultancy AT Kearney shows growing investor confidence in Indonesia's startup market, with investment in the sector having grown 68-fold over the past five years to $1.4 billion in 2016.
The report titled "Indonesia Venture Capital Outlook 2017," carried out between May and August this year, suggests that the startup landscape in Indonesia is still in its infancy, but growing rapidly, primarily driven by e-commerce and transportation.
According to the Jakarta Globe, investment in the sector so far this year has already more than doubled compared with $3 billion in the first eight months last year.
Foreign direct investment (FDI) into Indonesia represented less than 2 per cent of all global investment on average in 2012-2016, government data showed, and over that period less than 30 per cent of foreign commitments were eventually realized.
Indonesia's economy has been growing at around 5 per cent in the last few years, to boost this, there are new measures to create a single submission system for investors so they only have to go one place to get all required licenses.