Indonesia’s tech sector to grow exponentially in 3 years, with projections of up to $300 billion

The market is currently worth USD40 billion, with a thriving number of unicorn start-ups owing their success to technology 

On Thursday, John Riady, director of PropertyGuru Indonesia Award-winning firm Lippo Group, told CNBC that the country’s technology sector is currently at an inflection point and forecasts a substantial growth between USD200 to 300 billion in the next two to three years. 

“Indonesia is the most exciting digital and technology market in Asia and arguably the world,” said Riady, adding that when their group “first invested in technology in 2012, the size of the entire technology market in Indonesia was approximately USD100 million. That same asset class today is about USD40 billion.” 

Lippo Group is among the biggest conglomerates in the country, with businesses in several industries, from real estate and retail to healthcare and telecommunications.

Since its first tech venture in 2012, the group now boasts 30 investments in Indonesia’s tech arena, including Jakarta-based digital payments platform OVO. He believes that the country is reaching an inflection point in technology, comparable to China in the early 2000s when tech adoption surged swiftly. 

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Indonesia is the fourth most populous country with over 275 million people and is the second-largest economy in Southeast Asia. CB Insights revealed that it is home to unicorn start-ups or private companies that are valued at USD1 billion and above, including OVO and e-commerce firm Bukalapak.

Investors agree that the country is ready for a digital boom due to the expanding middle class and the increasing number of internet users. Although, some may find the market quite complicated to handle seeing as the population is scattered across 10,000 islands, most with its own language and culture. 

Nevertheless, the tech sector’s great potential for growth has enabled internet start-ups to prosper and have caught the eye of foreign investors.