JAKARTA, October 26, 2025 – Venture capital firm Skystar Capital has provided input to the government on how to foster the continuous growth of the technology industry, particularly in the field of Artificial Intelligence (AI), across Indonesia. Among the recommendations is urging the government to enhance the development of the AI ecosystem and industry through stronger research and development (R&D) efforts.

This call was made by Abraham Hidayat, Managing Partner at Skystar Capital, during his participation as a speaker in a seminar titled “Can AI Startups Really Find Success in Southeast Asia?” The seminar was part of the Tech In Asia Conference 2025, held on Thursday (October 22, 2025) in Jakarta.

Abraham stated that Indonesia’s startup and digital technology ecosystem is already performing well and continues to expand. “We are arguably in the top 10-20 globally when it comes to the world’s startup ecosystem,” he remarked.

He added that the government and technology regulators in Indonesia essentially have policy directions that are supportive of business development within this industry ecosystem. However, Abraham suggested that there is still significant room for growth that can be achieved through government policies.

One key measure is to continuously encourage research and development to spur new AI technology innovation. According to him, the R&D aspect in Indonesia still lags far behind compared to other countries.

Abraham suggested that Indonesia could emulate the serious approach to research and development taken by countries like China and the United States. In both nations, R&D is seriously and continuously pursued to support technological innovation.

“There is a reason why the US and China have managed to surpass other countries. Fundamentally, education underpinned by research and development is the backbone of the innovation taking place in these developed nations,” Abraham asserted.

Reflecting on this condition, Abraham believes the government should increase its attention on promoting and strengthening R&D, both within universities and private companies.

Furthermore, Abraham proposed the idea of fostering the establishment and development of AI startups in various regions. He suggested that AI development in these areas could be strengthened through private sector companies, State-Owned Enterprises (SOEs), and government institutions.

“Allocating 5, 10, or 20 percent of their budget towards technology spending for local startup development. Perhaps that is another way to strengthen startup development in every country,” Abraham commented.

The massive future potential for AI use and development is reflected in the AI Index Report 2025, released by the Stanford Institute for Human-Centered Artificial Intelligence. The report indicates that 80% of respondents have used AI and are optimistic about its positive impact, while 54% are optimistic that AI can enhance the economy going forward.

Abraham concluded that Indonesia holds immense potential for AI development. He expressed hope that the government will continue to optimally encourage the growth of the AI industry ecosystem in the future.

 

About Skystar Capital

Skystar Capital is a venture capital firm driven by the spirit of empowering founders to be pioneers of innovation and change. Skystar Capital partners with early-stage founders across Indonesia and Southeast Asia. Unlike traditional venture capital firms, Skystar Capital offers more than just financial investment, providing expertise, access to strategic networks, and various instruments designed to help founders achieve their highest aspirations. To date, Skystar Capital has over 50 portfolio investments, having invested across more than nine sectors, including fintech, edutech, healthtech, proptech, logistics, and web3. Journalists can find more information by accessing the official website at https://skystar.vc/.

For further information, please contact:

Christopher Josua
Head of Communications and Partnerships Skystar Capital
+62817-613-011