John Riady, Co-Founder and Managing Director of Venturra Capital is confident that Indonesia can play a significant role in the digital economy of Southeast Asia.
He attributes this to the positive trend in startup funding and the country's favorable demographics compared to other nations.
"In the next decade, Indonesia will continue to enjoy a demographic bonus with a solid middle-class growth and a market of tech-savvy millennial and Gen Z users," said John, as quoted by Antara.
With a growing middle class and a tech-savvy millennial and Gen Z population, Indonesia is well-positioned for growth. Additionally, Southeast Asia's stability and economic development make it an attractive destination for investments. John predicts that in the next decade, Southeast Asia could become the world's third-largest economic growth engine.
The population in Southeast Asia is estimated to reach 679 million this year, accounting for about 9 percent of the world's population. This is good news because John sees the majority of the population being in the productive age range, which can support market growth and consumption. "Not only is [the economic growth] high but regional stability is also maintained. This attracts investments from outside," he added. He also predicts that in the next decade, Southeast Asia could become the world's third-largest economic growth engine. Previous research by Momentum Works has indeed identified Indonesia as the country with the highest amount of new funding in Southeast Asia. At least 46 percent of the total 929 funding deals in Southeast Asian startups have taken place in Indonesia.
The tech-savvy nature of Gen Z is also reflected in a report by the Association of Internet Service Providers in Indonesia (APJII), which states that Gen Z has the highest online presence compared to other age groups. John and the Lippo Group have been actively involved in the development of the technology startup investment ecosystem in Indonesia. John himself remains active as a Managing Partner at Venturra, which aims to secure 12 funding deals in 2023.