Indonesia’s startups continue to attract investors

After dominating the investment market for the past few years, startups continue to attract investors this year.

Investors see a startup as a company which fulfills three categories required in businesses, said Morgan Stanley president director Oki Ramadhana.

“There are three things, which are usually used as benchmarks in potential businesses that will give profit to investors. Those are scalable, profitable and tractable records,” he added.

Tokopedia and Gojek are two examples of successful startup businesses in Indonesia, said Northstar co-founder and managing partner Patrick Walujo during a seminar at the University of Indonesia (UI) over the weekend.

“Tokopedia only started with the capital worth 200 million rupiah (US$15,000) from its founder and former boss. But now, the company has gained US$1 billion,” he said.

However, Patrick stressed that it is not only a matter of big money for startup companies but also sustainability.

“It’s not only about being rich, but how to make the company grow over time. Therefore, startup owners need to find an investor partner that will help them to step up to the next level,” he added.