The Indonesian General Election is coming up on February 14–just next week.
Having lived in Singapore for years, I needed to reach out to family and friends at home to find out about the general mood in the home country recently. The answers were quite gloomy, to be honest. “We’re avoiding going out, if possible,” some said. “My business struggles; people are becoming extra careful about money.”
In a recent email interview with e27, Adrian Li, Founder & Managing Partner of AC Ventures, writes about how the upcoming 2024 elections introduce “a degree of uncertainty that may temporarily slow down startup investments.”
“As stakeholders navigate the political landscape, there is a natural inclination for investors to exercise caution and adopt a wait-and-see approach. This cautious stance arises from concerns about potential policy shifts, regulatory changes, or alterations in the business environment that could impact the risk-reward dynamics for startups. The period leading up to and immediately following the election might witness a slowdown in funding activities, as investors assess the post-election scenario and adjust their investment strategies accordingly.”
All of this might sound dreary, but Li sees that there is a possibility that the situation might improve in the future—depending on what happens post-election.
“… The exact impact [on the startup ecosystem] will hinge on the election outcome, subsequent policy decisions, and the government’s stance on fostering a conducive environment for business and innovation.”
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Startups and politics
When asked about the relationship between startups and politics in Indonesia, one might think about that particular moment in 2019 when former Gojek CEO Nadiem Makarim was named Minister of Education and Culture. Makarim was not the only familiar face in the local startup ecosystem to expand their wings into the public sector; several startup founders were also named as special presidential staff for the same period.
For some founders, this did not end well.
One might treat this as a cautionary tale of what can happen when innovation crosses paths with politics, but I personally see this as a testimony of the strength of the local startup ecosystem. The word “startup” no longer belongs to college kids in hoodies trying to build an app to disrupt the existing system; startup founders today find themselves where their potentials are acknowledged and their voices heard. They have unlikely opportunities to open up for themselves.
They are now powerful.
As always, there are always two sides to everything. On the brighter side, this means the startup community are becoming more influential in Indonesia’s different layers of life. On the darker side, some might wonder: Just how much power can one person have until it becomes too much?
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I firmly believe in the philosophy of “with great power comes great responsibility”, as declared by the great philosopher Uncle Ben from the older Spiderman films. If you have been living in Indonesia for a while, you might understand how easily one can turn to the dark side when in a position of power.
So, as we wait for the uncertainty to pass, as we go through another day of our existence with diligence and perseverance, may we remember how our decisions and actions can impact something beyond ourselves.
May the best men win.
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Image Credit: prananta haroun on Unsplash
The post Startups and the Indonesian general election 2024: Thoughts on the intersection of innovation and power appeared first on e27.