Foreign Invaders. Or not.

Amidst a flurry of funding from overseas, local players urge a review of startup ownership rules in Indonesia

Representatives from major local business lobby groups, congressmen and academics have expressed concerns about foreign investment in Indonesia’s startups, citing the risk of capital flight from the country and locals being disadvantaged by foreign IT talent.

Fearing that foreign-owned startups which repatriate their earnings overseas would cause a loss of national income, Bhima Yudhistira from Indonesia’s Institute for Development of Economics and Finance has advocated a 40% foreign ownership cap on startups, and calls for the restriction of mergers or acquisitions that would result in monopolies or unfair competition.

The deputy head of KADIN (Indonesian Chamber of Commerce), Johnny Darmawan, has similarly cautioned against majority foreign ownership in startups. He laments unclear regulations on ownership that have encouraged the influx of foreign investors only interested in acquiring consumer databases from Indonesia’s vast market.

Ecky Mucharam, a member of the House of Representatives, separately has warned about various issues, including foreign ownership and the influx of imported products in e-commerce marketplaces. “Once again,

To continue reading, please download the full report.

Your payment was not successful.

Please make sure you have entered your payment details correctly. Or try again in a few moments.

small logo

The discount code you entered is invalid

Please make sure you have entered your discount code correctly. Or try again in a few moments.

Download successful.

Your sample has been sent. Please check your email.

By accessing and using and all pages within the domain (the “Website”), You accept and agree to have read, understood, accepted and agreed to be bound by the Terms of Use and Privacy Policy in full. If you disagree with all or any part of these Terms of Use and Privacy Policy, please do not use or continue any further use of this website. You acknowledge that you are aware that this Website contains an archive of existing content as at 31 December 2021 and is not being actively managed. We are under no obligation to update the content on this Website and, accordingly, no new content or articles will be posted to the Website after 31 December 2021.