JAKARTA, October 22, 2025 — Despite the ongoing “tech winter” that has slowed down the global venture capital scene, Indonesia-based venture capital firm Skystar Capital remains optimistic. The firm sees continued potential in three key sectors: artificial intelligence (AI), climate change, related innovation, and consumer-focused businesses serving the Indonesian market.
This outlook was shared by Abraham Hidayat, Managing Partner at Skystar Capital, during his session at the panel discussion “Investors’ Lens: Scaling What Matters” ; part of Paper UNFOLD, a flagship business conference hosted by Paper.id at The Kasablanka, Jakarta, on October 15, 2025.
The event, attended by over 1,000 decision-makers, industry leaders, and digital economy players, marked the first large-scale conference organized by the payment solutions fintech, Paper.id. It also represented the inaugural flagship summit by one of Skystar Capital’s portfolio companies. The conference featured notable speakers, including Minister of Creative Economy Teuku Riefky Harsya, Paper.id CEO and Co-Founder Yosia Sugialam, and Abraham Hidayat himself, under the theme “Rooted in Legacy, Rising with Technology.”
Navigating a Challenging Investment Climate
Abraham acknowledged that the investment landscape for tech startups has become increasingly difficult over the past few years.
“In the last decade, a lot of capital has poured into the tech sector,” he explained. “However, the number of startups that have successfully achieved an exit remains very limited.”
He also pointed out that recent corporate scandals have fueled global skepticism toward tech investments in Indonesia.
“What we call the ‘tech winter’ is real. Just a few years ago, foreign investors were racing to invest in local startups. But in the last one or two years, that enthusiasm has almost completely dried up,” he said.
Even so, Abraham remains hopeful. He sees many resilient founders who continue to innovate and build businesses despite the headwinds. “That’s why we keep watching this ecosystem closely. There are still exciting opportunities out there,” he added.
AI, Climate, and the Indonesian Consumer
Skystar Capital currently has over 50 portfolio companies across more than nine sectors, including fintech, edutech, healthtech, proptech, logistics, and web3. Yet Abraham believes the next wave of growth will be led by three areas.
For AI, Skystar is particularly interested in AI-enabled businesses, rather than core AI platforms or infrastructure.
“We’re not competing with the big Silicon Valley players,” Abraham said. “Instead, we’re hungry to invest in startups that effectively apply AI to enhance their operations and create real business value.”
On the climate tech front, he noted the growing awareness around sustainability issues but also highlighted challenges in business models and market readiness.
“Many are talking about climate change, but not all have clear business models yet. Still, we’re optimistic that within the next five years, there will be many promising opportunities,” he said.
Lastly, he emphasized the importance of the Indonesian consumer market, where digital adoption continues to accelerate and demand for localized solutions is growing rapidly.
Strategic Focus and Investment Philosophy
Abraham explained that Skystar Capital divides its investments into three main themes:
Marketplace businesses that directly address consumer needs such as Carro, a used-car marketplace, and BrideStory, a wedding vendor platform.
Fintech innovations that expand access to financial services for underserved consumers.
Software companies that enhance business productivity and scalability.
“At the end of the day, whether it’s tech or non-tech, what matters most is market momentum and product–market fit,” he said.
Abraham added that founders approaching Skystar Capital should look beyond funding alone.
“When founders come to us, we want to see how we can help scale their business; not just financially, but strategically,” he concluded.
About Skystar Capital
Skystar Capital is a venture capital firm committed to empowering founders to become pioneers of innovation and change. Partnering with early-stage startups across Indonesia and Southeast Asia, Skystar provides not only financial investment but also deep expertise, strategic networks, and operational support to help founders realize their full potential.
To date, Skystar Capital has invested in over 50 companies across nine sectors, including fintech, edutech, healthtech, proptech, logistics, and web3.
For more information, visit https://skystar.vc/.
Media Contact:
Christopher Josua
Head of Communications and Partnerships, Skystar Capital
Tel: +62 817 613 011
