PRecious Communications and BOI Research surveyed 23 startups in Indonesia to identify potential pitfalls they are likely to face, and the actions required to overcome these challenges.
PRecious Communications together with our partner, BOI Research, have published a joint report revealing the startup scene in Indonesia based on a survey of 23 startup CEOs and managers all over Jakarta, Bandung, and Denpasar.
The report focuses on issues in the Indonesian startup ecosystem, along with the challenges and opportunities the startups in Indonesia are facing. You can download the full report on “The Current State and Future Outlook of Startups in Indonesia” here.
Lars Voedisch, Managing Director of PRecious Communications, pointed out, “The start-up scene in Indonesia is thriving and dynamic. While Singapore provides a comprehensive support system, start-ups in Indonesia become major successes in spite of infrastructure and business environment challenges within the country.”
Click on photo to download the report on “The Current State and Future Outlook of Startups in Indonesia.”
Key Findings
E-commerce, education and healthcare can be promising industries in the upcoming years as the government has allocated a huge budget in these sectors. Investments are expected to grow in the future as investors and venture capitalists will get tax incentives of up to 100% for a maximum of ten years if they invest in the small-medium enterprise. This is an opportunity for startups development in the country.
However, starting a business in Indonesia is still more difficult and takes more time than neighbouring countries, but startups have understood this and usually hire professionals to deal with setting a company. Spending 2 to 3 months or more for setting up a company is seen as a given.
Another challenge faced by startups is that they still don’t plan the financial aspect thoroughly and rely on private money. Many startups don’t survive because they can’t find financing needed to run the business. Majority of local startups still rely on friends/family for financing.
All companies mention that their sales have been growing, but the majority of them are still not profitable but expect to meet the BEP 3 to 5 years after they start the business. The low brand equity and high competition are the main factors of slow sales performance.
Getting the needed talents is difficult as Indonesian graduates are not the most workforce ready. Indonesian universities don’t provide enough practical skills that will be useful in the workplace.
More than half of the companies provide training to their employees, mainly focusing on technical skills. Meanwhile few companies are unable to arrange regular capacity building due to limited time and lack of people available.
For more information, please contact
PRecious Communications Indonesia
indonesia@preciouscomms.com
Discover how ESG is not merely a choice but an essential evolution for Vietnamese businesses, with marketing as the bridge connecting ESG commitments to conscious consumers. Explore the crucial role of PR, marketing, and ethical communications in the evolving business landscape where sustainability is paramount.
PRecious bekerja dengan ONE Championship, organisasi seni bela diri terbesar di dunia, untuk menghadirkan publisitas dan ketertarikan terhadap acara yang diselenggarakan di Indonesia. Untuk mencapai tujuan ini, PRecious berhasil menciptakan kehebohan di kawasan dengan menghadirkan sebuah “buzz video”, yang menampilkan para influencer Indonesia seperti Stefer Rahardian, Ramdani Lestaluhu dan Hesti Purwadinata. Video tersebut akan ditayangkan di akun Facebook dan Instagram para influencer tersebut.
PRecious membantu PT Campina Ice Cream Industry meluncurkan LuVe, es krim vegan rendah kalori dibuat dari susu kedelai, di Yogyakarta. PRecious menggunakan gabungan PR tradisional dan pelibatan influencer untuk memperkenalkan penawaran terbaru dari Campina. Kampanye ini mendapatkan perhatian dari media lokal, nasional dan media sosial Instagram.
BASF Indonesia, produsen produk kimia terbesar di dunia, menunjuk PRecious untuk mengatur strategi komunikasi di acara “We Create Chemistry” dalam rangka merayakan ulang tahun ke-40 perusahaan mereka di Negara ini. Pada acara ini, BSAF bermaksud mengumumkan inovasi-inovasi baru di bidang produksi kimia. Dengan menyelenggarakan dan melaksanakan diskusi media roundtables dengan Presiden Direktur BASF, PRecious membantu menempatkan BASF di media utama Indonesia, termasuk CNN Indonesia. Langkah ini secara efektif memposisikan mereka sebagai pakar utama di industri mereka.
Mimpi adalah perusahaan yang menawarkan matras tidur mewah dengan harga terjangkau bagi masyarakat Indonesia. PRecious membantu Mimpi menciptakan kesadaran terhadap merek dan teknologi yang mereka gunakan dengan merangkul influencer lokal sehingga dapat menjangkau beragam saluran media. Selain merangkul para influencer lokal, peluncuran pers juga diatur untuk mendukung tujuan Mimpi di Indonesia. Hasilnya, merek ini semakin dikenal, teknologi matras tidurnya semakin dipahami dan menerima banyak perhatian jika dilihat dari jumlah like dan follower di media sosial.
PRecious worked with ONE Championship, the world’s largest martial arts organisation, to generate hype and interest around an event that took place in Indonesia. To achieve this, PRecious successfully created excitement in the region through the creation of a “buzz video”, featuring Indonesian influencers such as Stefer Rahardian, Ramdani Lestaluhu and Hesti Purwadinata. The video was circulated on the influencers’ Facebook and Instagram.
PRecious helped PT Campina Ice Cream Industry launch LuVe, a low calorie, vegan ice cream made using soy milk, in Yogyakarta. PRecious employed a combination of traditional public relations and influencer engagement to spread awareness of the new offering from Campina. The campaign received attention in local media, national media and on Instagram.
BASF Indonesia, the largest chemical producer in the world, appointed PRecious to drive communications around the “We Create Chemistry” event to celebrate their 40th anniversary in the country. At the event, BSAF intended to announce new innovations in chemical production. By organising and executing media roundtables with BASF’s President Director, PRecious helped place BASF in key Indonesian media, including CNN Indonesia. This effectively positioned them as thought leaders in their industry.
Mimpi is a company that aims to offer luxurious and affordable mattresses to everyone in Indonesia. PRecious helped Mimpi to create awareness for the brand and the technology that they use through localised influencer engagements, resulting coverage in various media outlets. In addition to these engagements, a press launch was also organised to support Mimpi’s goal in Indonesia. As a result, the brand received increased awareness, a better understanding of the technology behind the mattresses and higher engagement, in terms of likes and followers, on social media.