Tech Winter Optimism Begins to Melt, Startup Investment Ready to Boom

Todaysgist.com, Jakarta – The startup ecosystem in recent years has undeniably been experiencing a condition called tech winter. This is a condition of declining investment that occurs in the technology industry including startup in Indonesia.

Although it is not really over, Chairman of the Nexticorn Foundation Rudiantara is optimistic that there are signs that tech winter is starting to improve. He conveyed this at the Nexthub Global Summit 2024 in Nusa Dua, Bali.

One indication is that the US Central Bank or The Federal Reserve has reduced the base interest rate by 50 points. In fact, he said, Bank Indonesia was more aggressive by first reducing the benchmark interest rate by 25 basis points.

“So for me, that’s the light at the end of the tunnel. We’re not completely thawed out yet, but at least the ice of tech winter is starting to melt,” he said.

Not only that, according to Rudiantara, the Indonesian capital market has surpassed Singapore’s capital market capitalization with a value of around USD 750 billion.

“This makes Indonesia truly ASEAN’s largest economy,” the former Minister of Communication and Information continued.

Not only that, according to Rudiantara, the government has also issued regulations that support the development of Indonesia’s digital economy. In addition, there is development and strengthening in the financial sector.

In addition, the ecosystem startup is now getting healthier. He said, the ecosystem startup This is no longer just about burning money, but has started to be oriented towards positive cash flow.

“Moment tech winterthere is Covid. Cheap money it doesn’t exist, even free money it’s gone. If it used to still exist cashbackfree shipping (promo), now it’s gone, now it’s more about profit,” he continued.

The Minister of Communication and Information, Budi Arie Setiadi, also said that falling interest rates have the potential to increase investment.

“In America, say the interest is 5 percent, why would people want to invest? Just put the money in the bank. That’s when the interest becomes 2.5 or 3 percent. Well, there is… challenging” he said.

With these conditions, it means that money is starting to be spent on business, including making investments in growing sectors.