In 2024, insurtech funding in Asia-Pacific (APAC) experienced a significant decline, dropping 61% to $193m from $495m in 2023, according to the Tracxn Geo Annual Report: SEA InsurTech 2024. This significant decrease is attributed to a wider global funding downturn influenced by macroeconomic uncertainties, inflation, and elevated interest rates. Seed-stage funding also decreased by 16% to $7.7m, while early-stage investments plunged over 80% to $38.5m in the same year.

Interestingly, late-stage funding saw an increase of 11% to $147m, with the second half of 2024 being the most active funding period, amassing $111m. Despite this, the amount is still 50% lower than the same period in 2023. The highest funding activity of the year was recorded in the fourth quarter, with a total of $105m secured. Despite these downturns, Singapore maintained its position as a global tech hub, ranking fourth in FinTech funding, trailing the US, UK, and India.

Meanwhile, Mastercard has launched TRACE (Trace Financial Crime), an AI-powered solution to detect and prevent money laundering in the Asia-Pacific region. TRACE operates by analyzing payment data across multiple financial institutions, providing a comprehensive view of financial crime beyond the individual silos of banks. The solution addresses the challenges posed by the rise of real-time payments (RTPs), which, while enabling near-instant transactions, also present opportunities for criminals to swiftly move illicit funds across accounts. The first Asia-Pacific rollout of TRACE is in the Philippines, in partnership with BancNet, the switch operator of RTP service InstaPay.

In other tech news, East Ventures, a leading venture capital company, has launched Indo Build AI, an artificial intelligence platform in Indonesia. The platform aims to foster knowledge exchange among AI innovators through a series of activities culminating in a Demo Day. The launch of Indo Build AI demonstrates East Ventures’ commitment to establishing an AI ecosystem in Indonesia. Activities include a workshop featuring AI experts from AWS, Alibaba Cloud, and Google, focusing on AI applications in startups and new AI adoption methods.

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The recent plunge in Southeast Asia’s insurance technology (insurtech) funding, with a 61% drop to $193m in 2024 from $495m in 2023, is indicative of a broader global funding downturn. This downturn is driven by macroeconomic uncertainties, inflation, and higher interest rates, according to the Tracxn Geo Annual Report: SEA InsurTech 2024. The decline was most notable in seed-stage funding, which saw a 16% decrease to $7.7m, and early-stage investments, which plunged over 80% to $38.5m.

Despite this downward trend, late-stage funding saw an increase of 11% to $147m, suggesting that established insurtech companies are still attracting investment. The most active funding period in 2024 was the second half of the year, which raised $111m – a figure that is still 50% lower than the same period in 2023.

Meanwhile, in the field of artificial intelligence (AI), there are significant advancements in Indonesia, despite the overall funding decrease. East Ventures, a leading venture capital firm, launched Indo Build AI, a platform intended to encourage knowledge exchanges among AI innovators. This new platform aims to bridge the gap by providing collaboration and innovation platforms, reflecting East Ventures’ commitment to forming an AI ecosystem in Indonesia. This move aligns with the country’s broader digitalization push for efficiency.

Additionally, DCI Indonesia, the country’s top data center operator, has seen its shares surge to record levels amid increasing demand for cloud computing and AI, adding over $2 billion to the wealth of its billionaire cofounders. This boom in AI is also evident in the success of AI-powered solutions such as Mastercard’s TRACE, an AI-powered network-level solution to detect and prevent money laundering. These advancements affirm Singapore’s status as a global tech hub, ranking fourth in FinTech funding behind the US, UK, and India.

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In an increasingly digital world, artificial intelligence (AI) is transforming industries and redefining geopolitical landscapes. This is particularly evident in Indonesia, where AI initiatives are driving innovation in various sectors, from fishing to small and medium-sized enterprises (SMEs).

A striking example of this is the work of Japanese advertising agency, Dentsu. As reported by Nikkei Asia, Dentsu is leveraging AI technology to enhance the quality grading of tuna in Indonesia, one of the world’s top tuna-catching nations. The technology promises to eliminate the subjective nature of current grading techniques, which are often compared to an art form due to their lack of standardization.

Simultaneously, Indonesia’s Ministry of Trade is making strides in supporting SMEs through AI integration. According to Borneo Bulletin, the ministry has launched the Gemini Academy, an initiative designed to bolster the global competitiveness of Indonesian SMEs by helping them leverage AI.

However, as AI continues to permeate various aspects of society, concerns about ethical standards and governance are rising. Some nations are advocating for ethical AI, including Indonesia. As reported by Pakistan Point, the nation is pushing for AI systems that support human needs and values, rather than undermining them.

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The world of work is rapidly evolving, with certain job roles predicted to emerge in 2025 and beyond. As technology continues to advance, so do the skills needed in the workforce. This evolution of jobs is particularly visible in Southeast Asia’s HR sector, where leaders are constantly exploring and discussing the challenges and trends in the industry.

Artificial Intelligence (AI) plays a significant role in this shift. For instance, Indonesia is making considerable strides in tech innovation by harnessing AI to foster economic growth and enhance digital capabilities. At a recent Indonesia Economic Summit in Jakarta, Luhut Pandjaitan, Senior Economic Advisor to President Prabowo Subianto, revealed plans for the development of a low-cost, open-source large language model (LLM). The yet-to-be-named model, seen as a local version of China’s DeepSeek chatbot, is anticipated to be fluent in both Indonesian and English, symbolizing Indonesia’s commitment to bridging language barriers in the tech space.

However, the region’s rapid advancement in AI also brings challenges. Asian labor markets, including Bangladesh, India, the Philippines, and Indonesia, are particularly vulnerable to AI-driven automation. Countries like Bangladesh, which have traditionally relied on cheap labor, now face significant challenges as the rise of AI threatens to cause massive unemployment.

Nonetheless, Indonesian officials believe that AI can drive the country’s digital economic growth. This sentiment is also echoed in the call for Indonesia’s micro, small, and medium enterprises (MSMEs) to adopt AI for export growth. AI is thus seen as a double-edged sword: while it may lead to job displacement, it can also create new opportunities and drive economic growth.

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East Ventures, a leading venture capital company, has unveiled Indo Build AI, a platform designed to stimulate the growth of artificial intelligence (AI) solutions in Indonesia. The platform encourages knowledge exchanges among AI innovators through a series of activities, culminating in a Demo Day. These programs will feature AI experts from AWS, Alibaba Cloud, and Google, discussing topics like AI application in startups, AI’s generating adoption, and new advancements in the field.

Indo Build AI reflects East Venture’s commitment to fostering an AI ecosystem within Indonesia, according to Willson Weather, Co-Founder and Managing Partner East Ventures. This move comes amid increasing demand for AI and cloud computing in the country, as evidenced by the recent surge in shares of DCI Indonesia, the country’s top data center operator.

The shares of DCI Indonesia jumped by 20% recently, with the company’s gains for the week reaching about 47%. This rapid growth is attributed to the optimism of investors who believe that the company’s earnings will continue to grow as it expands its digital footprint across Indonesia, one of Southeast Asia’s most promising data center markets. The rally has significantly increased the net worth of the company’s billionaire co-founders, Otto Toto Sugiri, Marina Budiman, and Han Arming Hanafia.

While the surge in the AI sector is promising, concerns over valuation exist. Harry Su, managing director of Samuel Sekuritas Indonesia, expressed that though they like the fundamentals of the company, the valuation is deemed expensive. Despite this, the ongoing advancements in AI are undeniably contributing to Indonesia’s growing digital economy, creating a fertile ground for AI innovators and investors alike.

Indonesia’s artificial intelligence (AI) sector is experiencing significant growth, as demonstrated by recent developments from venture capital company East Ventures and data center operator DCI Indonesia.

East Ventures has launched Indo Build AI, a platform designed to facilitate learning, building, and showcasing AI-based solutions to real-world challenges in Indonesia. The initiative is intended to encourage knowledge exchanges among AI innovators through a series of key activities, culminating in a Demo Day. The program includes a technical workshop featuring AI experts from AWS, Alibaba Cloud, and Google, discussing the application of AI in startups and AI’s adoption generation.

“Indo Build AI is here to bridge the gap by providing collaboration and innovation platforms. This initiative reflects our commitment to forming an AI ecosystem in Indonesia,” said Willson Weather, Co-Founder and Managing Partner East Ventures.

Meanwhile, DCI Indonesia’s shares have surged to record levels, driven by increasing demand for cloud computing and AI, adding $2 billion to the wealth of its founders. The company’s shares rose by 20% to 67,225 rupiah ($4.1), reaching the upper limit of allowable daily share price fluctuation for two consecutive days. This has resulted in a weekly gain of about 47% as investors show optimism for the company’s growing digital footprint across Indonesia, one of Southeast Asia’s hottest data center markets.

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Indonesia is emerging as a significant hub for artificial intelligence (AI) innovation, as demonstrated by recent developments in the country’s tech sector. East Ventures, a prominent venture capital company, has launched Indo Build AI, an AI platform designed to foster learning, building, and showcasing AI-based solutions to real-world challenges in Indonesia.

Indo Build AI aims to stimulate knowledge exchange among AI innovators through a series of key activities, culminating in their Demo Day. Co-Founder and Managing Partner of East Ventures, Willson Weather, stated that the initiative is intended to bridge the gap by providing a platform for collaboration and innovation. The platform is set to boost the formation of an AI ecosystem in Indonesia.

The Indo Build AI program will include a technical workshop featuring AI experts from AWS, Alibaba Cloud, and Google. The session will explore the application of AI in startups, AI’s generating adoption, and new technological trends.

Meanwhile, the AI boom in Indonesia is having a significant impact on the nation’s data center market. DCI Indonesia, the country’s leading data center operator, has seen its fortunes rise dramatically. The shares of the company, co-founded by billionaires Otto Toto Sugiri, Marina Budiman, and Han Arming Hanafia, increased over $2 billion in the past week.

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Indonesia’s tech scene is experiencing a significant surge, particularly in the areas of artificial intelligence (AI) and data management. Leading venture capital firm East Ventures has unveiled a new platform, IndoBuild AI, aimed at strengthening AI innovation in the country. This initiative will provide AI developers with opportunities to learn, develop, and showcase their solutions to real-world challenges while connecting them with key technology players.

The IndoBuild AI program will unfold in multiple stages, beginning with a one-day technical workshop on February 26, 2025. This session will feature renowned AI experts from AWS, Alibaba Cloud, and Google, who will cover topics such as AI adoption in startups and generative AI applications. This move by East Ventures is expected to accelerate AI adoption by facilitating knowledge sharing and uncovering new opportunities.

Concurrently, the fortunes of the billionaire cofounders of DCI Indonesia—Otto Toto Sugiri, Marina Budiman, and Han Arming Hanafia—have climbed over $2 billion in the past week. This significant increase is due to shares of the country’s top data center operator surging to record levels amid the rising demand for cloud computing and AI. DCI shares jumped 20% on Thursday to 67,225 rupiah ($4.1), hitting the upper limit of allowable daily share price fluctuation for the second consecutive day. This week’s gains are approximately 47% as investors have shown optimism that earnings will continue to grow as the company expands its digital footprint across Indonesia, one of Southeast Asia’s hottest data center markets.

These developments demonstrate the rapid growth and potential of Indonesia’s tech industry, particularly in the fields of AI and data management. By fostering innovation and supporting the growth of tech startups, Indonesia is positioning itself as a key player in the global tech landscape.

The RI government is investing in the future by empowering young minds with visual coding training, an initiative that echoes the growing importance of technology in today’s world. This effort to nurture a future generation of tech-savvy individuals is in line with the global trend of digital literacy and technological innovation.

Meanwhile, the Indoor Distributed Antenna System (DAS) market in the Asia-Pacific is experiencing significant growth, driven by increasing demand for seamless wireless connectivity and swift adoption of 5G infrastructure. The market is projected to see continuous expansion, with potential growth sectors including commercial buildings, transportation hubs, healthcare facilities, and education. This underscores the increasing reliance on advanced technology and digital infrastructure in modern society.

However, Malaysia is facing challenges in developing AI data centres due to US export restrictions on AI chips. Despite these limitations, the country’s data centre ecosystem’s overall development is expected to remain unaffected. The situation is a reminder of the geopolitical implications of technology and how international policies can impact a country’s technological advancement.

In the realm of environmental conservation, technology is being harnessed to protect coastal ecosystems. With approximately 40 percent of the world’s population living near coastlines, the health of these ecosystems is vital. Particularly in Southeast Asia, the wellbeing of coastal ecosystems has become a leading catalyst for innovation and investment. The use of technology in environmental protection underscores its versatile and transformative potential.

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In a bid to empower the next generation and build a robust tech industry, the government of Indonesia has started offering visual coding training to its young population. This move is part of a broader initiative to harness the power of technology and innovation for the benefit of the nation’s economy and environment, as reported by Antara News.

In a parallel development, the Indoor Distributed Antenna System (DAS) market in Asia-Pacific is set to expand due to the implementation of 5G networks in Indonesia, as per a report by Global Information, Inc. The upgrade to 5G technology, known for its faster communication rates and capacity to support more connected devices, is expected to drive the indoor DAS industry despite the challenges posed by its higher frequency signals.

However, the region is facing hurdles in the realm of Artificial Intelligence (AI). Malaysia, in particular, is grappling with challenges in developing AI data centres due to US export restrictions on AI chips. Malaysia’s Deputy Investment, Trade and Industry Minister Liew Chin Tong expressed that while the restrictions will not impact the overall development of Malaysia’s data centre ecosystem, access to advanced AI technology exports will be limited and controlled due to the country’s classification as a Tier 2 country, according to Business Today.

Despite this, Southeast Asia continues to leverage technology for environmental conservation. The region, which is home to approximately 42 percent of the world’s total mangrove forests, is turning to technology to protect coastal ecosystems. Technology proves itself to be a modern solution to age-old problems, paving the way for innovation and investment in the region, as cited by The Jakarta Post.

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