The startup scene in Indonesia seems to have been flooded by investors as well as budding entrepreneurs themselves but one of the concerns among several entrepreneurs is that the majority of investors are based in Jakarta and they prefer to deal with Jakarta-based companies rather than out of town ones. This creates a disparity and perhaps a little envy among those outside of the capital city.
Obviously Indonesia is far more than just Jakarta and despite the city being the business, financial, entertainment, and political hub of the nation, nobody should take the rest of the country for granted. In fact, the roles should probably be split up or shared with other cities but that’s an argument for another time. At the heart of the issue is the requirement by these Jakarta-based investors that the startups and entrepreneurs that they’re going to take under their wings to be located in Jakarta as well.
What is more likely the issue with these investors is that they may not have the resources at this stage to go to other cities as yet, let alone national. Alternatively, they may not be prepared to go beyond Jakarta for now because of the uncertainty that surrounds the industry. They could be concerned that some of the so called entrepreneurs are only in it for the money, not necessarily to advance their business. Of course, some entrepreneurs may be concerned that investors would be too restrictive with their terms but again that’s a different argument.
What needs to be done is to accommodate these entrepreneurs who reside outside of the nation’s capital. If Jakarta-based investors cannot make themselves available for these people, why not grab potential investors local to those regions? Surely there are successful businessmen, entrepreneurs, and willing individuals who may be interested in putting some money in the technology industry who are not based in Jakarta.
Rather than have everyone rushing to grab a slice of the same pie, why not add more pies? Everyone shouldn’t be eating from the same pie or they’ll end up with smaller bites. Find out ways to add more pies so those who want a slice or even an entire pie to themselves, can have them without having to fight a needless battle.
Thanks for sharing it.
Thanks for sharing it.
There are some points of concerned, speaking of local investors. Entrepreneurs are not only seeking for the money but also for mentors. Mentors who have succeeded before, who have managed to scale their business from a start up to an established profitable business entity so they could guide us. And in a web start up or software start up there aren’t that many local investors who have succeeded before, especially outside Jakarta. Despite the infrastructure we all will be very pleased to start outside Jakarta, no morning traffic rush, no high cost for food and just all work. This could be some food for thought for Daily social. How about you guys also run some profile of investors outside Jakarta?
Very timely. I was just actually thinking about this. Been back and forth to Jogja a few times in recent months, it’s an interesting scene.
Beside Jogja and Bandung, would you recommend anywhere else?