Profit Strategies, Policy Insights, and Ecosystem Confidence ๐ฎ๐ฉ๐
Dear Readers,
2024 was one hell of a year for the startup ecosystem, and Iโm not just talking about Indonesia but also globally. But as we enter a new year, a lot of excitement and energy to make the best out of 2025. Wishing you all nothing but the best this year! ๐ป
And as 2025 begins, weโre excited to share updates from Indonesiaโs dynamic startup ecosystem.
Cheers,
The DailySocial Team
๐จ Whatโs New
Here are some key highlights from news.dailysocial.id, your go-to platform for Indonesian startup and business insights:
Empowering MSMEs Through Digital Startups
Indonesia Financial Groupโs subsidiary, PT Bahana Artha Ventura (BAV), continues its collaboration with digital startups to channel credit to MSMEs. Its latest partnerships include BukuWarung, a financial app for MSMEs, and GandengTangan, a P2P lending platform licensed by OJK. Earlier, BAV allocated IDR 50 billion to embedded finance startup Fairbanc. [Read More]INDODAX Secures Full Crypto Trading License
INDODAX, a leading crypto asset platform, has been officially licensed as a Physical Trader of Crypto Assets by BAPPEBTI. The license underscores INDODAX's adherence to stringent regulatory, security, and transparency standards, ensuring robust protection for customer funds. Additionally, INDODAX has joined the government-regulated PT Bursa Komoditi Nusantara (CFX), enhancing its operational compliance. [Read More]BRI Danareksa's SMARTINVEST for Young Investors
BRI Danareksa Sekuritas introduces SMARTINVEST, a feature on its BRIGHTS app designed for Indonesiaโs increasingly young investor demographic. It automates idle fund investments and offers Extra Buying Power, tripling purchasing capacity for shares. [Read More]InnoVen Capitalโs Recent Venture Debt Investments
InnoVen Capital SEA has provided venture debt funding to McEasy (logistics SaaS) and Pintarnya (job marketplace). Partner Paul Ong emphasized Indonesia's potential despite the recent funding slowdown, highlighting its growing private equity investments and entrepreneurial talent. [Read More]
"We believe in the promise of the Indonesian technology ecosystem. Despite the recent equity funding winter, we are encouraged by the large and growing addressable market, and the overall trend of increasing private capital investments in the country, and the growing base of talented entrepreneurs who are consistently identifying innovative solutions for pressing issues such as geographic disconnectivity and financial exclusion. We continue to view Indonesia as an important market, and are looking to invest more in the country in 2025,"
Paul Ong, Partner at InnoVen Capital
๐ Whatโs Exciting
Stricter Paylater Regulations Aim to Protect Consumers
The Financial Services Authority (OJK) of Indonesia is stepping up consumer protection by introducing new regulations for BNPL (Buy Now Pay Later) services, set to take effect in 2027. These rules include:Borrowers must be at least 18 years old or married, with a minimum monthly income of IDR 3 million (USD 185).
Service providers are required to clearly notify users about risks, repayment obligations, and financial discipline.
These measures address growing concerns over the rapid adoption of Paylater services, which reached IDR 8.41 trillion in usage by October 2024โa significant 63.89% year-over-year increase. While Paylater has enabled easier access to financing for many, the regulations aim to mitigate risks of overspending and financial mismanagement, ensuring sustainable growth for this credit model.
VAT Increase Limited to Luxury Goods
In a major fiscal policy shift, Indonesiaโs government has revised its plans for a blanket VAT increase to 12%. Instead, the new rate will apply exclusively to luxury goods already subject to the Luxury Goods Sales Tax (PPnBM) โ purchases of crypto assets on local platforms will also be subject to 12% VAT.. Key details include:The updated VAT framework aligns with regulations outlined in PMK 15/2023 and PMK 42/2022.
This decision balances government revenue needs with public concerns, particularly amid strong opposition to a uniform VAT hike.
Indonesiaโs current VAT rate positions it as the second-highest in ASEAN, after the Philippines (12%). Meanwhile, neighboring countries like Vietnam, Malaysia, and Thailand maintain lower rates of 10% and Singapore 9%. By targeting luxury items, Indonesia hopes to safeguard affordability for essential goods while addressing fiscal sustainability.
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๐ Whatโs Next: Strategies for Long-Term Profitability
The "tech winter" has reshaped strategies across startups, emphasizing profitability over aggressive growth. We spoke with Moses Lo, Co-Founder & CEO of Xendit, and Delta Purna Widyangga, Co-Founder & CEO of Qiscus, about navigating this shift.
Key Takeaways:
Profitability as a Priority
Focus on solving core customer problems with high-value solutions.
Optimize unit economics by reducing acquisition costs, improving retention, and maximizing customer lifetime value.
Expansion with Purpose
Plan market expansions and M&A strategically to enhance market position without jeopardizing profitability.
Capitalize on undervalued opportunities during economic downturns, as demonstrated by Xenditโs strategic launch in the Philippines during 2020.
Vision for 2025
Diversify fintech offerings beyond payments, such as insurtech and digital banking.
Leverage AI for personalization, faster response times, and better customer experiences.
Adapting to Change
Embrace agility in operations to respond to market shifts effectively.
Focus on value chain opportunities to capture additional growth.
Foster a collaborative and empowered team culture to stay competitive in dynamic ecosystems.
"Thereโs no one-size-fits-all answer to profitability strategies; they must be tailored to each business and its timing. Seek advice from diverse mentors and engage directly with customers to assess market needs. Payments in Southeast Asia are becoming commoditized, but fintech must provide higher-margin, value-added services to stay relevant. Reflecting on 2024, we've learned the importance of pursuing higher-margin opportunities faster and understanding the payments value chain to capture more value."
Moses Lo, CEO Xendit
"Agility is essential in todayโs fast-changing landscape. At Qiscus, weโve embedded it into our culture, processes, and products, streamlining decisions and empowering teams to adapt quickly. The 300% growth in our AI-powered solutions shows that innovation is about staying indispensable. Moving forward, weโll focus on AI innovation, talent investment, and resilience to empower businesses in a digital-first, AI-driven world."
Delta Purna, CEO Qiscus
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