Bukalapak’s Pivot, Crypto’s Regulatory Shift, and Edtech Resilience 🇮🇩🔥📈
Dear Readers,
As we step into the second week of 2025, here’s your curated update on the dynamic startup ecosystem in Indonesia. These insights are designed to keep you informed, inspired, and empowered to make strategic decisions that matter.
This week’s motivational quote to kick off your week: “The best way to predict the future is to create it.” – Peter Drucker
Warm regards,
The DailySocial Team
🚨 What’s New
Here are some of the key highlights from Indonesia’s startup scene this past week curated from news.dailysocial.id:
Bukalapak Shifts Focus Away from Physical Marketplace. Unicorn e-commerce platform Bukalapak has announced its strategic move to discontinue physical product marketplace operations by March 2025. The company will pivot towards digital products such as mobile credits, digital vouchers, and subscription services. Bukalapak is doubling down on Mitra Bukalapak and gaming solutions in collaboration with Itemku, while streamlining operations to become leaner and more efficient. Transitioning users seamlessly remains a priority as the company cements its position in the digital ecosystem. [Read More]
Bukalapak will focus on selling virtual products this year / Doc. Bukalapak Soul Parking Secures Series A+ Funding for Expansion. Tech-based parking management provider Soul Parking has raised Series A+ funding led by AppWorks and AC Ventures, with participation from Taiwan Mobile, USPACE, and Wavemaker Ventures. The funds will fuel expansion into densely populated cities, enhance parking solutions, and explore opportunities in electric vehicle segments. Known for innovations like Compact Motorcycle Storage (CMS) and real-time analytics via its Soul Parking OS, the company processes over 20 million parking transactions annually across 100 property partners. [Read More]
HiFeed Secures Pre-Seed Funding to Combat Livestock Emissions. Agritech startup HiFeed has closed a pre-seed funding round led by Wavemaker Impact. The funds will be used to develop eco-friendly cattle feed, reduce methane emissions, and enhance farm efficiency with sustainable feed technology and carbon insetting solutions. Co-founded by Ihsan Akhirulsyah, former Co-Founder and CFO of eFishery, HiFeed is on a mission to create greener, more sustainable livestock systems while addressing the 9% of global greenhouse gas emissions attributed to cattle farming. [Read More]
SC Ventures Launches Labamu to Empower SMEs in Indonesia. Standard Chartered’s venture arm, SC Ventures, has unveiled Labamu, an invoicing and billing application designed to accelerate SME growth in the Asia-Pacific region, starting with Indonesia. Labamu integrates digital and physical sales channels, streamlines operations, and enhances financial access through banking service integration. With initiatives like the Women Grow Together campaign, which has trained over 7,500 female entrepreneurs, Labamu is driving inclusive growth. [Read More]
bukaPO Raises Late-Seed Funding to Scale B2C Adoption. bukaPO, a marketplace for pre-order culinary products, has raised late-seed funding led by Bali Investment Club (BIC) and elea Foundation for Ethics in Globalization. This round will accelerate B2C adoption, enhance platform technology, and expand into new regions. With over 4,000 home chefs empowered—predominantly women—bukaPO has generated over USD $10 million for its community, enabling home chefs to scale into thriving small businesses. [Read More]
Cashfazz Receives Key Licensing from Bank Indonesia. Part of Fazz Financial Group, Cashfazz has secured a Payment Initiation and Aggregation Services (PIAS) license from Bank Indonesia. This enables the company to offer payment gateway and remittance services targeted at B2B segments. Cashfazz aims to achieve full profitability this year, leveraging a diversified product strategy, including expansion into consumer and enterprise segments. According to CEO Hendra Kwik, the company’s contribution margin and EBITDA have seen significant growth of 35% and nearly 50%, respectively. [Read More]
“So far, the company's net contribution margin has increased by approximately 35%, and EBITDA has grown by nearly 50%. We are also actively expanding from the warung segment, moving upward to the enterprise side through our payment gateway, and downward to warung consumers (with an app that will soon be launched). We project achieving full profitability this year,” said Hendra.
👏 What’s Exciting
Indonesia Transfers Crypto and Derivatives Oversight to OJK and BI
In a landmark regulatory shift, Indonesia has officially transferred the oversight of digital financial assets, including cryptocurrencies and financial derivatives, from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK) and Bank Indonesia (BI). The transition, driven by the Financial Sector Development and Strengthening Law (UU P2SK) and Government Regulation No. 49 of 2024, is expected to be completed within 24 months.
The restructured framework aims to establish a more robust, secure, and competitive digital financial ecosystem. OJK will oversee crypto and derivatives within capital markets, while BI will manage money market-based derivatives, supported by new regulations such as POJK No. 27/2024 and PBI No. 6/2024.
With crypto transactions in Indonesia surging to US$34.1 billion in 2024—an impressive 356.16% growth compared to 2023—this transition reflects growing public trust in digital assets. The ecosystem now includes over 22 million registered users, with 1.3 million active monthly traders. Dominant assets such as Tether (USDT), Bitcoin (BTC), and Dogecoin (DOGE) remain at the forefront of this booming market.
TikTok Shop Surges to US$32.6 Billion in GMV in 2024
TikTok Shop has solidified its position as a disruptor in e-commerce, reporting an impressive global GMV of US$32.6 billion in 2024 (MomentumWorks). While the U.S. led with US$9 billion in GMV, Indonesia emerged as the second-largest market with US$6,1 billion in GMV, reflecting the region’s rapid adoption of video and live commerce.
In Indonesia, TikTok Shop has successfully tapped into the country’s vibrant e-commerce landscape by targeting younger demographics and leveraging the immense popularity of short-form videos and live shopping. The platform’s innovative approach, including AI-driven personalization and strategic collaborations with Key Opinion Leaders (KOLs), has redefined the way Indonesians shop online.
Beauty and personal care remain the top-performing categories, with 9 out of the 10 best-performing stores in Indonesia originating from these segments. Despite the lower average transaction value in Indonesia ($4.98) compared to markets like the U.S. ($19.64), the sheer volume of transactions underscores the platform’s enormous growth potential.
However, TikTok Shop faces challenges, including potential regulatory restrictions on e-commerce transactions via social media platforms. These challenges highlight the need for platforms like TikTok Shop to innovate within regulatory boundaries and continue fostering inclusivity, especially for Indonesia’s MSME sector, which is rapidly embracing digital channels to reach new audiences.
🚀 What’s Next: Building a Resilient and Scalable Edtech Ecosystem
The edtech sector in Indonesia, which experienced a surge in adoption during the pandemic, is now navigating a critical phase of consolidation and sustainable growth. While the market size remains promising—projected to reach $1.5 billion in revenue by 2025 (Statista)—startups face challenges in scalability, regulatory adaptation, and revenue diversification.
Achmad Zaky, former CEO of Bukalapak and current leader of Init-6 and the Achmad Zaky Foundation, has shifted his focus to revolutionizing education by establishing preschools, vocational schools, and universities. These efforts are integrated with the edtech startups his ventures invest in, creating a unique value proposition to bridge offline and online education.
According to Zaky, three significant challenges hinder the growth of edtech startups in Indonesia:
Regulatory Adaptability
Many edtech startups struggle to anticipate or adapt to evolving regulations, leading to reactive strategies that incur high compliance costs.Short Lifetime Value (LTV)
Startups targeting high school students often face limited engagement windows, with a typical LTV of just three years, making long-term retention difficult.Over-Reliance on Online Models
While online education gained traction during the pandemic, its scalability is limited. Users expect additional value, and fully online solutions often fail to meet the diverse needs of learners.
To address these challenges, Zaky proposes a three-pronged strategic approach:
Proactive Regulatory Alignment
Build forward-thinking strategies that anticipate regulatory changes, reducing compliance risks and creating a competitive advantage.Omnichannel Delivery Models
Combine online and offline solutions to broaden market reach and offer more comprehensive educational experiences. This approach is particularly effective in regions where access to digital infrastructure is limited.Revenue Diversification
Explore new revenue streams, such as partnerships with government and corporate entities, to reduce dependency on a single business model.
"Strategic partnerships with educational institutions and government bodies are key to creating a resilient edtech ecosystem," Zaky emphasizes. "By staying ahead of regulatory changes and aligning business models accordingly, startups can unlock significant growth potential."
The path forward requires edtech founders to innovate beyond current norms. The integration of technology, human-centric solutions, and strategic collaborations can drive sustainable impact, positioning Indonesia’s edtech sector as a global leader in the future of education.
Now is the time to rethink, innovate, and lead. Transform your business today to meet the needs of tomorrow’s learners!