4 weeks ago
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Dear subscribers,
Hope you had a great week. As we dive into a new one, here’s your curated roundup of the latest developments in Indonesia and the region’s tech ecosystem. From regulatory clampdowns to funding momentum and early signs of recovery from local tech giants—this edition is packed with updates you don’t want to miss.
Let’s dive in.
Best regards,
The DailySocial Team
Here are key updates from the Indonesian tech ecosystem in the past week:
Indonesia’s Ministry of Communication and Digital Affairs (Komdigi) has temporarily suspended the operations of Sam Altman’s Worldcoin and WorldID due to concerns over biometric iris data misuse. Worldcoin, a crypto product under Altman's Tools for Humanity project, claims all user data is encrypted and not sold. Still, authorities are taking precautionary measures and will summon two affiliated entities: PT Terang Bulan Abadi (unregistered PSE) and PT Sandina Abadi Nusantara (used as a TDPSE entity). The move aligns with national digital safety regulations. [Read More]
Orb, the device WorldID uses to scan irises / Worldcoin
ID Startup Funding:
Coffee-chain startup Flash Coffee secured a US$3 million round led by TA Ventures, with White Star Capital joining. The funding supports plans to reach 70+ outlets nationwide by 2025, including expansion into two new cities. [Read More]
Multi-brand F&B startup Hangry is reportedly closing a new bridge round. According to Alternatives.pe, it has raised around US$9.8 million so far from returning investors like Alpha JWC Ventures, Journey Capital Partners, and Orzon Ventures. [Read More]
Indonesia‘s Financial Services Authority (OJK) has released the country’s first Artificial Intelligence Governance Guidelines for Banking. This framework ensures AI implementation in banking is ethical, secure, and compliant with local laws and global practices like the EU’s AI Act. The guide covers AI use across banking life cycles—from service optimization to risk management and fraud prevention—while aligning with the national Data Protection Law. [Read More]
Indonesia’s e-commerce sector posted a stable 4.95% growth in transactions and a 6.8% increase in customers throughout 2024, aligning with a projected GMV of US$90 billion (e-Conomy SEA 2024). Categories like FMCG, beauty, and parenting products saw the highest surge, with peak traffic during major Double Day campaigns like 11.11. Lunchtime and evening now dominate shopping hours, and e-wallets power 63% of transactions. SIRCLO predicts video commerce and omnichannel will drive 2025 growth, especially outside Java. [Read More]
Bank Indonesia (BI) defended its QR code payment system (QRIS), stressing it is built on global standards (Mastercard/Visa) adapted for local needs. BI Governor Perry Warjiyo clarified that QRIS aims to boost financial inclusion and payment efficiency. With 56.3 million users and 38.1 million merchants, QRIS is also supporting cross-border transactions. While flagged in a US trade barrier report, BI maintains QRIS is not protectionist and remains open to foreign players like Visa and Mastercard. [Read More]
Malaysia Secures US$3.7B in Digital Investments
Malaysia Digital initiative attracted MYR 16.2 billion (US$3.7B) in approved investments in Jan–Apr 2025, potentially creating 6,480 jobs. AI, data centers, and cloud services were top segments, showing Malaysia’s serious push in digital economy leadership.Lightspeed Goes Full RIA, Expands into Public & Crypto Markets
Lightspeed Venture Partners is now a Registered Investment Advisor (RIA), giving it more flexibility to invest in public equities, crypto, secondaries, and AI. With US$31B AUM and a new $7B fund incoming, it follows peers like Sequoia and Andreessen Horowitz in evolving toward private equity-style strategies.Peak XV Raising US$1.4B for Southeast Asia
Following its split from Sequoia, Peak XV is raising its first independent fund focused on India and Southeast Asia. The US$1.2–US$1.4B vehicle will be its ninth fund since 2006, with a growing interest in AI and cross-border support for Indian founders expanding to the US.AI Funding Hits US$66.6B in Q1 2025
AI funding reached an all-time quarterly high of US$66.6B (+51% QoQ), driven by mega-rounds in AI infrastructure (OpenAI US$40B, Anthropic US$3.5B). Median deal sizes hit a four-year high. Healthcare AI and AI agents dominated new unicorns and M&A activity.AI startup funding hits quarterly high / CBInsight
In Q1 2025, local tech heavyweights GoTo, Bukalapak, and Blibli showed signs of a shift toward healthier business fundamentals—driven by cost discipline, digital monetization, and operational efficiency.
GoTo reported an adjusted EBITDA profit of Rp393B (US$23.8M), reversing last year’s loss. Net revenue rose 37% YoY to Rp4.2T (US$255M), mainly from a 54% YoY jump in core GTV. The fintech arm posted Rp47B (US$2.8M) EBITDA and 108% YoY growth in consumer lending. However, leadership changes followed: Commissioner Boy Thohir stepped down to focus on family business, and three directors also exited in a strategic reshuffle.
GoTo heads toward profitability amid internal leadership shake-up / GoTo
Bukalapak posted a net profit of Rp111.8B (US$6.7M), a sharp turnaround from a Rp39.3B (US$2.3M) loss last year. Revenue rose 25% YoY to Rp1.46T (US$88.6M), driven by leaner marketing and better investment returns. Key drivers include Mitra Bukalapak and its financial investment units.
Blibli, despite a net loss of Rp641.5B (US$39M), improved operational efficiency. Revenue rose 20% YoY to Rp4.7T (US$285.2M), though high operating costs led to a Rp582.9B (US$35.3M) operating loss. With ecosystem integration (e.g., Tiket.com) and cost optimization, Blibli is restructuring for long-term profitability.
These earnings indicate that Indonesia’s tech sector is entering a more disciplined consolidation phase, which could help restore investor confidence in the digital economy's long-term promise.
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Media Partner
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