Indonesian tech startups are facing a sharp funding drop amid ongoing corruption scandals, with fresh reports highlighting the fallout. Just yesterday, on September 25, 2025, DealStreetAsia reported that venture capital funding for these startups sank to only $80 million in the first half of this year, down from $200 million in the same period last year. This marks a new low, driven by scandals at companies like agritech firm TaniHub and aquaculture startup E-fishery, where allegations of fraud have scared off investors.

This decline matters because it threatens Indonesia’s position as a tech hub in Southeast Asia. With funding at its lowest in years, startups may struggle to innovate or expand, potentially slowing economic growth in a region where tech drives jobs and digital services. Posts on X from the past day reflect growing frustration, with users pointing to poor governance and calling for accountability—some even linking it to broader corruption issues in government programs.

Experts are pushing for changes, like more hands-on investor oversight and independent audits. For instance, one investor recently ordered an audit of embedded finance platform Ayoconnect over a suspicious $5 million transaction, as noted in a DealStreetAsia post on September 24.

What to watch for next: Any new audit outcomes or government responses to rebuild trust, which could signal a rebound in funding—or further declines if scandals continue to emerge.