Indonesia’s tech sector saw a major shakeup yesterday with state-owned telecom giant Telkom announcing a $2.16 billion spin-off of its wholesale fiber connectivity business. This move, set for a shareholder vote in December, aims to streamline operations and draw fresh investment into the country’s digital infrastructure. It matters because Indonesia’s growing demand for high-speed internet is key to expanding its digital economy, which is already projected to hit $130 billion by year’s end, potentially positioning the nation as Southeast Asia’s leader in connectivity and attracting more foreign capital amid regional competition.

Today, Communications and Digital Minister Meutya Hafid spoke at a Jakarta event, urging investors to stay committed to the startup ecosystem despite sluggish funding trends over the past year. She pointed to government initiatives like upcoming digital finance festivals and policy tweaks to boost loan growth to 8-11% in 2025. This push is crucial as it addresses investor jitters in a market where startup funding has cooled, helping to sustain innovation in areas like fintech and green tech, which are vital for Indonesia’s goal of narrowing the digital divide across Southeast Asia.

On the investment front, a Malaysian firm announced a $100 million commitment to green technology development in Indonesia, signaling cross-border interest in sustainable tech amid the region’s push for eco-friendly growth. Meanwhile, Bank Indonesia highlighted plans for a 2025 fintech summit to expand digital payment innovations, like new QR code systems, which could accelerate e-commerce in this rapidly digitizing economy.

These steps reflect efforts to rebound from funding slowdowns, but uncertainty lingers around global economic pressures that might affect investor confidence. Watch for outcomes from President Cyril Ramaphosa’s ongoing Southeast Asia visit, including talks in Indonesia, which could unlock new partnerships in tech and digital trade by week’s end.