Startup Genome: Jakarta's Startup Ecosystem Worth 1.063 Trillion Rupiah

The capital city of Indonesia, Jakarta, ranks 15th out of 100 cities worldwide in the "Top 10 Emerging Ecosystems by Ecosystem Value" list released by Startup Genome titled Global Startup Ecosystem Report (GSER) 2023. The value of the Jakarta startup ecosystem is estimated at $71 billion (over Rp.1.063 trillion).

In the first and second place are occupied by Nanjing ($ 127 billion) and Detroit ($ 103 billion). Then, after Jakarta is occupied by Hong Kong ($54 billion) and Kuala Lumpur ($46 billion).

Speaking of rankings, when traced from three years ago, Jakarta's position has declined since 2022 out of the top 10. In 2020, Jakarta enter second, then dropped to third place in 2021. Then in 2022, it slipped to 12th place, far ahead of Hong Kong (2nd) and Guangzhou (6th), on the Asian scale. As for this year, Jakarta's ranking has dropped to 15th.

Even so, judging by the value of the Jakarta startup ecosystem from year to year, it has recorded an increasing trend. In 2021 it is estimated to be worth $34 billion, nearly doubling to $62 billion the following year.

This is the third year that Startup Genome has released a list of ecosystems from cities as part of the GSER report, in order to highlight metropolitan areas that are gaining relevance and impacting the economy in meaningful ways.

In its report, Startup Genome explained that Emerging Ecosystem Ranking is a startup community in the early stages of growth. The methodology used for this ranking is intended to showcase ecosystems that demonstrate high potential to become top global players in the coming years.

The factor weights used to rank these ecosystems differ slightly from those used with the Global Startup Ecosystem Ranking to reflect their emerging status and emphasize factors that are more influential in ecosystems that are just starting to grow. The weight given is also less than the value exit over $50 million and startup activity is more focused on early-stage funding.

Across all cities ranked, it was concluded that all cities in the Top 100 Emerging Ecosystems are worth more than $1,5 trillion, up 50% from 1 July 2019–31 December 2021 to 1 July 2020–31 December 2022. Then, Europe is the most represented in the Emerging Ecosystem, as seen from their contribution from 37% to 41% since GSER 2022.

Explained further, early stage funding includes both early stage and series A funding. Early stage funding is an important indicator of potential success as most startups that receive series A rounds have demonstrated their potential by creating a minimally viable product, by generating revenue, or by indicating that they are close to launching the product.

"Therefore, the number and number of rounds of the early stage in an ecosystem is an indicator of its success and growth," writes Startup Genome.

To support its findings, this report also lists the 10 cities with the largest ecosystem of total early-stage funding. Jakarta is in 2nd place with a value of $ 1,52 billion. The first sequence is occupied by Guangzhou ($1,56 billion), after Jakarta is filled by Hong Kong ($1,45 billion).

In addition, based on total unicorn companies that successfully printed in the last decade, Jakarta got third place with a total of seven unicorns. Meanwhile, Hong Kong has 11 unicorn and Guangzhou has 10 unicorn.

Interestingly, of the 19 cities with the most unicorn printers, five of them: Guangzhou, Chengdu, Nanjing, Wuhan, and Wuxi, came from China. When the total reaches 36 unicorns. Then followed by India, with a total of 11 unicorns from the cities of Pune (7) and Chennai (4).