Gojek became Indonesia’s first unicorn in 2016
In June 2024, Australia launched its Landing Pad program in Indonesia to facilitate the expansion of Australian tech scaleups in Southeast Asia and help boost the region’s digital transformation.
This program, initiated by Austrade, provides specialist support for Australian startups to gain market insights, explore expansion strategies, and connect with in-market networks and venture capital in the region. It works with local providers to offer advice and deep connections to the Indonesia tech world.
As of September 2020, 254 Australian startups have accessed this program and Landing Pads have now been established in Indonesia, Singapore and Vietnam. This is in addition to the existing Landing Pads in Germany, the United States, China and the United Kingdom.
Among the tech companies that have taken part in the program are Prosple and Codebots in Singapore, TwoHands and Ailytic in Shanghai, Tekuma and Gruntify in San Fransisco, and Vivify Textiles and 2thinknow in Berlin. Now Indonesian tech companies can join in too.
Why Indonesia matters for Australia
It makes sense that Australia chose Jakarta as its new Landing Pad for its start-ups.
As the largest economy in Southeast Asia, Indonesia presents a compelling case for deeper engagement with Australia’s Landing Pads program. Indonesia has an ambitious development plan, Indonesia Emas 2045 (Golden Indonesia 2045), and its economy is projected to become the world’s fourth-largest by 2045, behind only the United States, China, and India. With a population exceeding 270 million and a rapidly growing middle class, Indonesia offers a vast and dynamic market for innovative products and services.
More importantly, Indonesia is also undergoing a digital transformation, with an increasing internet penetration and a burgeoning e-commerce sector. Its startup ecosystem is thriving, supported by a youthful, tech-savvy population, and increasing domestic and foreign investment. Its digital economy is expected to reach US$125 billion by 2025,
As outlined in Invested: Australia’s Southeast Asia Economic Strategy to 2040, Australia is looking to shift its economic focus to Southeast Asia, especially its digital economy. This has increased rapidly, with about 460 million Internet users in 2022, the majority of whom were under 35 years old.
What ‘s in it for Indonesia?
Indonesia has a competitive edge that will help it benefit from Australia’s Landing Pad program.
In 2023, Indonesia ranked 37th worldwide while Australia was positioned in 11th in the global start-up index released by StartupBlink. But is worth noting that, while Indonesia was well behind Australia, Jakarta was seen as a better city for startup ecosystems, ranking 27, ahead of all major cities in Australia, including Sydney (36th), Melbourne (44th), and Brisbane (102nd).
The Landing Pad program aligns well with Indonesia’s goal of enhancing its digital economy, which is projected to reach $US360 billion by 2030. It can accelerate the country’s digital transformation with innovative solutions from Australian firms as Indonesia’s population becomes more integrated with advanced technologies . Fintech, cyber security, and AI will be critical sectors that Indonesia can foster through the Landing Pad program to achieve its goal of becoming a leading digital economy in Southeast Asia.
Furthermore, the program could boost partnership between Australian agricultural startups and Indonesian farmers or agribusinesses. This is because there is a growing need in Indonesia for innovative agricultural technologies to boost productivity and efficiency in a sustainable way.
The presence of Australian startups in Indonesia may also lead to the creation of skilled jobs in ‘high-sectors’ (industries that require advanced technical skills and knowledge, such as IT, software development, AI, and other digital sectors), providing local employment opportunities and enhancing workforce capabilities. Indonesia needs around 9 million digital talents in the IT sector over the next 15 years, that is, 600,000 individuals with skills and expertise in digital technology every year. Australian startups could help Indonesia achieve this through knowledge-sharing, resources, and modelling best practices.
Landing Pad can make Indonesia more globally visible as a tech hub, while at the same time opening new markets for it. By hosting Australian startups, Indonesia could enhance its visibility and competitiveness on the regional – or even global – stage as an emerging hub for entrepreneurship and innovation.
This increased profile can attract further international partnerships and investments, helping position Indonesia as a desirable destination for tech entrepreneurs looking to expand into the country, or Southeast Asia more widely.
Mutually beneficial initiative
In conclusion, while Australia’s Landing Pads are designed to support Australian tech startups expanding into Jakarta by offering market insights and network opportunities, they also present significant benefits for Indonesia.
By hosting Australian startups, Indonesia will also be able to increase its exposure to the global market, broaden its network, and enhance its capabilities as an innovation hub and attract more international investment and partnerships.
In short, the Landing Pads can not only help Australia’s startups expand their markets into Indonesia but could also improve Indonesia’s startup systems, digital transformation and economic growth.
