p>I was sitting in one of those overly-designed, industrial-chic coffee shops in Senopati the other day—you know the vibe, where the air is a thick mix of expensive roasted beans and that frantic, high-frequency tapping of MacBooks that defines the South Jakarta hustle. It’s funny how a place can stay exactly the same while the entire atmosphere shifts. It hit me right then: the conversation has fundamentally changed. Just three years ago, if you sat in this same spot, your ears would be ringing with talk of “burn rates,” “blitzscaling,” and the latest founder closing a Series C at a valuation that defied basic logic. Today? The buzzwords have shifted. It’s all about EBITDA, unit economics, and—dare I say it—actual, cold-hard profit. According to the latest insights from RISE by DailySocial, we’ve officially entered a new era of “tech sobriety” in Indonesia. And honestly? It’s about damn time.
For a long time, the Southeast Asian tech narrative felt a lot like a high-stakes poker game played entirely with someone else’s money. We were collectively obsessed with the “Unicorn” status, chasing those billion-dollar tags like they were Olympic gold medals. But as we sit here in February 2026, the landscape looks remarkably different. That old “growth at all costs” mantra didn’t just die a quiet death; it was buried under the crushing weight of market reality. While the transition was undeniably painful—marked by the brutal “winter” layoffs that defined much of 2023 and 2024—the ecosystem that has emerged on the other side is leaner, meaner, and far more resilient than the bloated version we saw during the pandemic boom. It feels less like a gold rush and more like a sustainable industry now.
Let’s be real for a second: the party had to end eventually. You can’t subsidize chicken rice deliveries and 5,000-rupiah motorbike rides forever without someone eventually asking where the money is actually coming from. What we’re witnessing now is the maturation of an entire generation of founders. These are the people who have realized—sometimes the hard way—that a business isn’t actually a business unless it makes more money than it spends. It sounds simple, right? Almost insulting to state out loud. But in the frenzy of the early 2020s, that basic truth was treated like a radical, almost buzzkill suggestion. We were all drunk on liquidity, and the hangover was necessary for us to finally grow up.
When the Free Money Ran Out, the Real Work Finally Started
The shift toward profitability wasn’t just a strategic choice made in a fancy boardroom; it was a survival mechanism. When the global liquidity tap was tightened and the “cheap money” dried up, Indonesian startups were forced to look inward. A 2025 report by Google, Temasek, and Bain & Company highlighted this perfectly: the Southeast Asian digital economy has finally pivoted toward a “profit-first” trajectory. What’s interesting is that the region’s GMV growth is finally being matched by a steady increase in revenue margins. In Indonesia specifically, we’ve seen the heavy hitters—the GoTos and Bukalapaks of the world—spend the last two years aggressively trimming the fat. They’ve cut the vanity projects, streamlined their operations, and it’s finally showing up where it matters: in their quarterly reports. They aren’t just surviving; they’re learning how to be efficient.
But the real story isn’t just about the giants. It’s about the mid-tier startups that stopped trying to be everything to everyone. We’re seeing a massive surge in specialized SaaS (Software as a Service) companies that are solving what most people would call “boring” or “unsexy” problems. Think supply chain logistics for MSMEs in Central Java or specialized fintech for the unbanked populations in Sulawesi. These aren’t the kind of companies that make “Top 10” lists on TikTok or get featured in flashy lifestyle magazines, but they are the ones building the actual backbone of the 2026 economy. They are solving real friction in the real world, and they’re getting paid for it.
I think we really underestimated how much the “easy money” era actually hurt genuine innovation. When you can just buy users with vouchers and cash-back schemes, you don’t really have to build a product that people love. You just have to build a product people use because it’s effectively free. Now that the vouchers are gone, the products actually have to be *good*. They have to provide real, tangible value to the user. That’s a massive win for the consumer in the long run, even if it does mean we have to pay full price for our lattes and deliveries now. It forces a level of quality that was missing when everyone was just chasing user acquisition numbers.
“The era of buying growth is over. Today, the only currency that matters in the Jakarta tech scene is sustainable value creation and a clear path to black ink.”
— Senior Venture Partner, Jakarta-based VC Firm
Beyond the Chatbots: How AI Actually Started Paying the Bills
If 2023 was the year of “AI curiosity” and 2024 was the year of “AI panic,” then 2025 was the year AI actually got a job in Indonesia. We’ve finally moved past that cringey stage where every startup just slapped an “AI-powered” sticker onto their pitch deck just to get a meeting with a VC. Today, AI is being used in the trenches. Statista reports that AI adoption among Indonesian enterprises grew by nearly 40% between 2024 and early 2026. This wasn’t driven by hype, but by necessity—specifically in customer service automation and predictive logistics. It’s about the bottom line now, not the cool factor.
I’ve talked to several founders recently who’ve managed to cut their operational costs by a staggering 30%. How? By integrating localized Large Language Models (LLMs) into their internal workflows. And that “localized” part is key. It’s not just about using ChatGPT; it’s about models that understand the nuances of Indonesian slang, cultural context, and business etiquette. This isn’t about replacing humans—though, let’s be honest, some roles have definitely shifted—it’s about making the existing teams exponentially more productive. In a market where margins are razor-thin, that 30% efficiency gain is often the only thing standing between thriving and folding. It’s the difference between a company that lasts and one that becomes a cautionary tale.
And it’s not just the tech-native companies getting in on the action. The “traditional” sectors are finally waking up too. We’re seeing legacy retail chains using AI to optimize their inventory across thousands of islands. They’re predicting demand in Maluku before the orders even come in. It’s less “Sci-Fi” and more “Spreadsheet-on-Steroids,” but that’s exactly what the country needs right now. We don’t need a robot that can write mediocre poetry; we need a system that ensures a farmer in Lampung gets a fair price for his coffee because the supply chain is finally efficient enough to get it to market without half of it rotting on a pier somewhere.
Forget the “Next Billion”—It’s All About the Tiers Now
For years, the big dream was the “Next Billion Users.” In Indonesia, that usually meant looking beyond the glitz of Jakarta (Tier 1) and into the vast, untapped potential of Tier 2 and Tier 3 cities. However, the approach has changed. We’ve finally stopped treating these regions like a monolith. A consumer in Surabaya has vastly different needs, spending power, and cultural touchpoints than someone in a rural village in Papua. We’re finally getting smarter about how we segment this incredibly diverse country.
The data supports this nuance. A 2025 report from the Indonesian Internet Service Providers Association (APJII) found that while internet penetration has hit over 82%, the *usage* patterns in rural areas are heavily skewed toward commerce and education rather than just pure entertainment. This has led to what I call the “hyper-localization” of tech. We’re seeing startups that don’t even bother launching in Jakarta anymore. They focus instead on becoming the dominant player in a specific province or a very specific industry vertical. It’s a “bottom-up” approach that is proving to be much more sustainable than the old “top-down” Jakarta-centric model.
But there’s a catch, of course. Reaching these users is expensive, and the infrastructure—while improving—still has some pretty major gaps. This is where the partnership between the government and the private sector has actually shown some teeth lately. The “Digital Indonesia Vision 2045” isn’t just a pretty PowerPoint presentation anymore; we’re seeing real movement in satellite connectivity and digital literacy programs that are finally moving the needle. It’s a slow process, but for the first time, it feels like the foundation is actually being laid correctly rather than just being rushed for the sake of a press release.
Trust Over Algorithms: Why the Future of Commerce Looks Like the Past
Remember when we thought social commerce was just selling things on Instagram or TikTok? It’s evolved into something much more complex. It’s now a hybrid of community-driven trust and sophisticated logistics. In many parts of Indonesia, people still don’t trust a faceless algorithm, but they *do* trust their neighbor. Startups that have figured out how to digitize that “neighborly trust” are the ones winning the Tier 2 and 3 markets. They aren’t trying to change the culture; they’re building tools that fit into it.
It’s fascinating to watch. We’re seeing a return to communal values, facilitated by high-tech backends. It’s a very “Indonesian” way of doing business—blending the old-school gotong-royong (mutual cooperation) spirit with 2026-level data analytics. And frankly, it’s a much more sustainable model than trying to turn everyone into a solitary, Amazon-style shopper. It acknowledges that in our culture, shopping is a social act, not just a transaction. By leaning into that, these companies are building a moat that global players find almost impossible to cross.
The Second Floor: Where We Go From Here in Late 2026
So, where does this leave us? If the last two years were about “cleaning house,” the rest of 2026 will be about “building the second floor.” I suspect we’ll see a few major things happen before the year is out. First, the M&A (Mergers and Acquisitions) market is going to heat up significantly. Now that valuations have returned to earth, the bigger players who have reached profitability will start hunting for innovative smaller teams to bolt onto their ecosystems. It’s a buyer’s market, and the consolidation is going to be intense, but it will lead to a much more stable environment.
Second, I think we’re going to see a “re-humanization” of tech. After the heavy push for automation, companies are realizing that in the Indonesian market, the human touch is still a premium service. The winners will be those who use technology to *enhance* human interaction, not replace it. Whether it’s a “phygital” retail experience or a fintech app that actually has a human you can talk to when things go wrong, the pendulum is swinging back toward the middle. People are tired of talking to bots that don’t understand their problems, and the companies that realize this first will win the loyalty game.
Finally, keep a very close eye on “Climate Tech.” It’s no longer just a niche interest for activists or something people talk about at conferences to sound “green.” With Indonesia’s commitment to carbon neutrality and the growing pressure from global investors, green tech is becoming a massive business opportunity. From EV infrastructure to sustainable agritech, the “Green Economy” is likely to be the next big tailwind for the Indonesian startup scene. It’s not just about saving the planet anymore; it’s about the massive efficiencies and new markets that come with it. The entrepreneurs who can solve environmental problems while making a profit are going to be the next generation of industry leaders.
Is the “Funding Winter” finally over?
Technically, yes, the absolute freeze has thawed, but don’t expect the “Funding Summer” of 2021 to return anytime soon. Investors are back at the table, but they are much more selective than they used to be. They are looking for “camels”—startups that can survive long periods without water—rather than flashy “unicorns.” If you have a clear path to profitability and a solid business model, the money is definitely there. If you’re still just selling a dream with no margins, it’s going to be a long year.
Which sector is the most promising in 2026?
While Fintech remains a heavyweight because of how much of the population is still underserved, Agritech and “Climate Tech” are seeing the fastest growth in terms of actual impact and investor interest. The government’s focus on food security and the green energy transition has created a massive playing field for innovators. Any company that can make the traditional supply chain more efficient is in a very good position right now.
Will AI lead to mass job losses in Indonesia?
The data so far suggests a “reshuffling” rather than a total loss of employment. While some entry-level data entry and basic support roles are being automated, there is a massive, growing shortage of “AI-literate” workers who can manage and oversee these new systems. The challenge we’re facing isn’t necessarily a lack of jobs; it’s a massive skills gap. The workers who can adapt to these new tools are seeing their value skyrocket, while those who don’t are finding the market increasingly difficult.
Looking back at that coffee shop in Senopati, I realize that the quieter, more serious tone of the conversations isn’t a sign of a dying industry. It’s a sign of an industry that has finally grown up. We’ve stopped chasing shadows and started building things that actually last. We’ve moved past the hype and into the hard work of building a digital nation. And honestly? That’s much more exciting than a billion-dollar valuation ever was. It feels real now, and that’s exactly what we needed.
This article is sourced from various news outlets. Analysis and presentation represent our editorial perspective.
