Tech investment in the Indonesian market has grown from US$1.4 billion in 2016 to US$3 billion in January-August 2017. In fact, Google and management consulting firm A. T. Kearney released a new report on venture capital investment in Indonesia which revealed that tech investment in the country has grown from US$1.4 billion in 2016 to US$3 billion in January-August 2017.
The rapid growth convince A. T. Kearney Partner, Alessandro Gazzini, that someday it might pass the country’s investment in oil and gas sector, which was US$5 billion in 2016. E-commerce and transportation continued to dominate tech investment in Indonesia up until August 2017.
Within Southeast Asian region itself, while Singapore remained the main hub for tech investment, other countries were quickly catching up with Indonesia leading the way.
From January to August, the majority of tech investment in Indonesia are in seed stage (43 per cent). But in terms of investment value, the biggest came in Series C or later stage at 43 per cent.
The rapid increase in value was driven by three major deals that have given birth to the country’s first three unicorns: Go-Jek, Tokopedia, and Traveloka.
All of these three unicorns raised their funding from at least one Chinese tech giant; from Tencent, Alibaba, to JD.