Dear subscribers,
Indonesia’s startup ecosystem is entering the second half of 2025 with a sobering reality: investor appetite remains weak. Funding in H1 2025 plunged by over 43% year-on-year, with total capital raised dropping to just US$161.3 million—its lowest in recent years. While early-stage deals still show signs of life, the broader landscape reflects growing investor caution, stricter demands for profitability, and structural gaps in governance.
This week, we dive deep into what’s holding back recovery—and what it will take to bring capital back into the market.
Let’s get into it.
Best regards,
The DailySocial Team
Indonesia’s new e-commerce tax rule stirs debate
The government is finalizing a regulation that will require major e-commerce platforms to withhold 0.5% income tax from sellers in the MSME bracket (annual revenue of Rp500 million–Rp4.8 billion). The move, intended to boost state revenue (down 11.4% YoY in Jan–May 2025), has drawn industry backlash over its rushed timeline and system readiness concerns. Platforms could face penalties for slow compliance. A similar policy failed in 2018 after just three months. [Read More]SEA e-commerce hits US$145B GMV, Indonesia still leads
Momentum Works reports Southeast Asia’s e-commerce GMV reached US$145.2B in 2024 (+12% YoY), with Indonesia contributing 44% despite slowing growth (+5%). Shopee, TikTok Shop, and Lazada now control 84% of the market. Off-platform channels (e.g., WhatsApp, brand sites) generated US$16.8B GMV, while live commerce contributed US$17.6B. AI adoption could add up to $131B in GMV by 2030. [Read More]
