Indonesia’s tech startup scene saw fresh momentum yesterday with a major funding win and regulatory changes aimed at boosting foreign investment. Food tech startup Hangry announced it secured $10.5 million in a Series A5 round led by Alpha JWC Ventures, building on earlier reports from August. This capital will fuel expansion of its cloud kitchen operations across the country, where it already serves over 100 locations. The deal matters because it signals resilience in Indonesia’s food delivery sector amid a broader funding slowdown—venture capital inflows have dipped this year, but Hangry’s focus on efficient, delivery-only models could help it capture more of the growing digital retail market, projected to hit $130 billion by 2025.

On the policy front, Indonesia’s Investment Coordinating Board (BKPM) enacted Regulation No. 5/2025 on October 2, but details gained traction in the last day with announcements slashing the paid-up capital requirement for foreign-invested companies by fourfold. This reform, highlighted in recent posts on X and business updates, lowers barriers from around $700,000 to much more accessible levels, making it easier for startups to attract international backers. It matters for Southeast Asia’s digital economy because Indonesia, as the region’s largest player, could draw more capital into tech sectors like AI and fintech, potentially narrowing the urban-rural digital divide as noted in the latest Digital Competitiveness Index where Jakarta leads.

Meanwhile, Bank Indonesia rolled out macro-prudential measures to spur loan growth toward an 8-11% target for 2025, including easing loan-to-value ratios and providing 120 trillion rupiah ($7.5 billion) in funding lines to banks. This ties into broader digital finance pushes, such as the upcoming Festival Ekonomi dan Keuangan Digital Indonesia in 2025, which will launch new QRIS innovations. These steps are crucial as credit growth has hovered near 6% year-over-year, risking slower GDP expansion around 5%; they could unlock more funding for startups in embedded finance and health tech, areas flagged for opportunity in recent reports.

Minister of Communications and Digital Affairs Meutya Hafid also spoke at a Jakarta event on October 22, urging investors to stay committed despite the funding slump, pointing to government policies supporting long-term growth. While optimism is high, uncertainty lingers around global economic headwinds that might delay full recovery.

Watch for upcoming fintech summits and the Indonesia Fintech Report 2025 details, which could reveal more on AI trends and cross-border payments, potentially influencing startup valuations in the coming weeks.