Following on from Redwing’s comprehensive list of tech investments in Indonesia (see here), it is interesting to analyse where investments are coming from. Local investors lead the pack, both in terms of number of investments and total investment value. Rocket Internet’s investors from the US and Europe have obviously been the largest source of foreign investment funds, and interestingly Australia has been the next biggest source of foreign investment funds.
Indonesian investors are the largest investment group
Over the past three years, Indonesian investors have made around a third of all tech investments in Indonesia, followed by Singaporean and other Asian investors (primarily from Japan).
This is unsurprising given the relative youthfulness of the tech sector in Indonesia, and the need for intimate local knowledge to identify the best companies and deals.
Singapore-based investors are the second-most active investors after local investors in terms of deals closed. However, most of their deals have been early stage, and so total investment amounts are not so high.
European and US investors have been strong investors in terms of total investment funds
Indonesian investors again lead the pack, with almost two-fifths of the total value invested. The US and European investment amounts are heavily skewed by the large funds raised by Rocket Internet for its Lazada and Zalora sites (we have allocated a proportion of the total funds raised across the different countries in SE Asia).
If Rocket Internet is removed from the graph, then Australia is the second largest source of foreign investment funds into Indonesia, matching the total invested from Japan, Korea, China, Malaysia and Thailand combined.