Indonesia’s tech sector saw significant moves in the past day, highlighting growth in telecom infrastructure and fintech innovation. Leading the news, state-owned Telkom Indonesia announced a $2.16 billion spin-off of its wholesale fibre connectivity business on October 21. This strategic split aims to streamline operations and draw fresh investments into the country’s digital backbone, responding to surging demand for high-speed internet across Southeast Asia. It matters because Indonesia, as the region’s largest economy, relies on robust connectivity to fuel its startup ecosystem and e-commerce boom—potentially sparking more competition and lower costs for consumers and businesses.

In fintech, a new report released on October 20 by Fintech Singapore detailed emerging trends in Indonesia, including AI integration, central bank digital currencies (CBDC), and cross-border payments. The document spotlights companies like AyoConnect, Indodax, and Xendit, noting how they’re adapting to regulatory shifts and tech advancements. This is key as Indonesia’s fintech scene has grown rapidly, with over 180 AI-based startups active by mid-2025—up threefold from two years ago, according to recent posts on X. It underscores the sector’s role in financial inclusion for Indonesia’s 270 million-plus population, though challenges like debt management in infrastructure projects, such as the ongoing bullet train collaboration with China, could influence broader economic stability.

On the funding front, Anugrah Neo Energy Materials, an Indonesian firm tied to battery and energy tech, revealed plans for a $300 million-plus IPO on October 21, as reported by Reuters. While not a pure startup, this move reflects investor interest in sustainable tech amid Southeast Asia’s push for green energy. It could signal more listings from Indonesian tech players, boosting capital for innovation, but details remain uncertain pending regulatory approvals.

Watch for Telkom’s spin-off execution details in the coming weeks, as they may reveal partnership opportunities. Also, keep an eye on fintech regulatory updates from Indonesia’s authorities, which could accelerate or hinder AI and CBDC adoption in the region.