Indonesia’s startup funding scene continues to struggle in 2025, with fresh reports highlighting a persistent slowdown. Today, local media outlet Katadata.co.id shared data from DealStreetAsia showing that investment in Indonesian startups during the first half of the year remains far below the 2021 peak, described as “lesu” or sluggish. This reflects broader economic pressures across Southeast Asia, where global uncertainties are making investors more cautious, especially in fintech and e-commerce sectors. Why it matters: With Indonesia as the region’s largest economy, this funding dip could slow innovation and job growth in tech, potentially widening the gap with neighbors like Singapore, which captured the lion’s share of regional funding at $2.3 billion in the first nine months of 2025, according to recent reports from The Business Times.

On a brighter note, some activity persists. A post on X today mentioned an Indonesian project raising $5 million in seed funding back in March, with plans for an additional $4.5 million via an ICO, totaling $14.5 million at varying valuations. Separately, Southeast Asia’s fintech startups collectively secured $839 million in the first nine months, per a report from vir.com.vn just two days ago, though this marks a decline from prior years. These deals show pockets of resilience, particularly in digital finance, which could help stabilize the ecosystem amid regulatory refinements and government pushes for infrastructure modernization, as noted in a Fintech News Indonesia report from two weeks back. The significance here is that while overall funding is down 54% in the region for 2024 (per Oblique Asia’s analysis six days ago), targeted investments in areas like insurtech—such as Bang Jamin’s $4 million pre-Series A round in August—suggest opportunities for niche players to thrive.

Uncertainty lingers, as these figures are based on partial data and social media sentiment, which can sometimes overstate or underplay trends. What to watch for next: Keep an eye on upcoming government initiatives, like potential boosts to the Indonesia Investment Authority, and any new funding announcements in the coming days that could signal a rebound in the digital economy.