The Indonesian government is focusing on 2 key areas that are hindering the advancement of the startup ecosystem.
First, is the promotion of economic stimulation and the simultaneous eradication of outdated regulation, bureaucracy and corruption. 12 policy packages aimed at doing so were released over the course of 2015 and 2016. So far, the efficacy of these have been debatable.
There has been progress made, albeit very slowly. For instance, Indonesia’s ranking for ‘ease of doing business’ has only improved from 129th in 2011 to 91st in 2016.
Indonesia also has a relatively inexperienced talent pool, and the government is looking at outsourcing foreign help to build its human capital. The growing presence of incubators, accelerators and VC firms should enable and facilitate the transfer of knowledge and thus, increase the quality of Indonesian startups. In addition, the government is in talks with Malaysia and the USA in regards to mentorship development.