📺🦄 New Indonesian unicorn. ⚠️ TikTok faces monopoly scrutiny. 🌐 Tackling Indonesia’s digital divide.
Dear subscribers,
We’re back with a fresh roundup of key developments shaping Indonesia’s and Southeast Asia’s startup landscape. This week, we spotlight significant funding milestones, major regulatory moves, and strategic expansions that are redefining the region’s digital economy.
From Vidio achieving unicorn valuation, regulatory challenges faced by TikTok post-Tokopedia acquisition, to strategic efforts addressing Indonesia’s digital competitiveness gap—this edition covers the vital stories you need to know.
Let’s dive in.
Best regards,
The DailySocial Team
🚨 What's New
Here are the most compelling developments from Indonesia’s startup ecosystem this past week:
Indonesian OTT platform Vidio has reportedly reached unicorn status, with a valuation exceeding US$1 billion. Regulatory filings, cited by Alternatives.pe, show Vidio secured nearly US$200 million in equity funding to date, including recent investments from Sinar Mas subsidiaries. Major shareholders include PT Surya Citra Media Tbk (79.44%), Affinity Equity Partners (15.89%), and PT DSST Video Gemilang (2.68%). [Read More]
According to Media Partners Asia, Vidio is the OTT platform with the most paid subscribers in Indonesia / Doc. Vidio TransTRACK, an Indonesian tech company focusing on fleet digitalization and supply chain optimization, has expanded its business regionally by opening a new office in Singapore. Marking its sixth anniversary, TransTRACK also partnered with Singapore’s TradeEZ Pte Ltd to market AI-driven solutions for operational efficiency and sustainability. [Read More]
Living Lab Ventures (LLV) reaffirmed its strategic investment priorities for 2025 during its Mid-Year Investment Outlook event, specifically highlighting healthcare and manufacturing as primary sectors. Healthcare investments reached US$139 million in Southeast Asia in Q1 2025, underlining the market’s strong potential. [Read More]
Microsoft launched the Indonesia Central Cloud Region, its first hyperscale data center in Indonesia, aiming to boost the nation’s digital economy. The US$1.7 billion investment will create over 106,000 jobs and significantly contribute to economic growth through cloud services and AI initiatives. [Read More]
Microsoft's first data center in Indonesia was inaugurated / Doc. Microsoft TikTok's acquisition of Tokopedia raised significant regulatory concerns over potential monopolistic market dynamics. Indonesia’s KPPU highlighted the increased market concentration risk post-acquisition, alongside significant workforce reductions at TikTok Shop. [Read More]
👏 What's Exciting
Here's your quick digest of exciting developments from the regional ecosystem:
Lazada plans to invest US$100 million annually in its Lazada Affiliate Programme, harnessing the growing affiliate marketing sector which represents 20% of regional online sales. The initiative includes advanced performance tracking, competitive commissions, and robust support for creators and brands.
Quadria Capital, a Singapore-based healthcare-focused private equity firm, successfully closed Fund III with commitments nearing US$1.1 billion, exceeding initial targets. The fund primarily targets strategic investments in countries including India, Vietnam, Indonesia, Malaysia, and Singapore, aiming to transform healthcare delivery across Asia.
Trip.com Group launched a 1-billion-yuan (~US$140 million) tourism innovation fund to support groundbreaking travel projects. New partnerships with hotels across Southeast Asia aim to enhance regional service standards and bolster international tourism flows.
🚀 What's Next: Indonesia's Digital Economy – Opportunities & Challenges Ahead
Indonesia’s digital economy continues to thrive, reaching a Gross Merchandise Value (GMV) of US$90 billion in 2024—up 13% year-over-year. E-commerce, especially video commerce, remains the strongest driver, fueling online engagement and sales, as noted in the East Ventures Digital Competitiveness Index (EV-DCI) 2025.
Yet, significant challenges remain. Despite impressive overall growth, digital inequality persists. Provinces like Jakarta, West Java, and Banten lead the way, while eastern regions such as Papua Pegunungan and Papua Tengah trail significantly.
Encouragingly, the national median digital competitiveness score improved slightly to 38.8, thanks to broader internet adoption in workplaces and expanded rural 3G and 4G coverage. Still, only 30.5% of rural populations have internet access, far behind urban areas' 69.5%.
Notably, Papua showed remarkable progress, climbing 14 ranks due to robust economic growth (7.8%) and investments in digital infrastructure, including satellite-based internet coverage.
AI technology adoption is accelerating, with Indonesia now ranked third globally—71% of workers routinely utilize AI tools. Investments in AI-focused startups jumped to $542.9 million in 2024, marking a significant increase over recent years.
Nevertheless, hurdles remain in regulation and talent acquisition. Indonesia needs around 9 million digital talents by 2030, but current projections fall short. Additionally, weak enforcement of data protection laws continues to pose significant risks.
To achieve the ambitious goal of increasing digital economy contributions to 20% of GDP by 2045, Indonesia must prioritize cross-sector collaboration, expand digital infrastructure, boost digital literacy, and develop flexible regulatory environments.