Indonesia’s tech startup scene saw a key push today from government officials aiming to ramp up AI innovation. Economic Coordinating Minister Airlangga Hartarto highlighted that the country currently has just 40 AI startups, far behind regional leaders like Singapore, and called for aggressive growth to close the gap. This matters because Indonesia’s Economy to Hit 300B by 2025">Southeast Asia Digital Economy to Hit 300B by 2025">digital economy is projected to hit $130 billion by 2025, but a shortage of AI players could limit its edge in sectors like e-commerce and fintech, where Southeast Asia is exploding with cross-border expansions from firms like India’s Razorpay.

Building on this, a fresh report out of Jakarta today outlined five critical considerations for launching successful tech businesses in Indonesia, emphasizing regulatory navigation and talent shortages amid a booming ecosystem. Why it stands out: With foreign investments pouring in—think crypto and asset tokenization trends—these insights could help startups avoid pitfalls like the fraud scandals that have slowed funding since 2022, leading to tighter investor scrutiny and deal cancellations.

Meanwhile, posts on X reflect growing buzz around AI tools for e-commerce, with local businesses adopting prompts for marketing and customer service, and global players like Alibaba and TikTok Shop dominating Southeast Asia’s online retail. This underscores the region’s shift toward AI-driven efficiency, but it also highlights competition squeezing smaller Indonesian startups.

Uncertainty lingers on funding flows, as recent analyses note investor hesitation due to past scams. Watch for upcoming government incentives or partnerships that could boost AI startup numbers, potentially announced in the next few weeks to align with Indonesia’s 2045 digital vision.