Today, the business world is undergoing massive transformation due to technological advancements and globalization. In response to these changes, the emergence of the digital economy is shifting traditional economic paradigms. However, Indonesia still faces challenges in developing digital startups, particularly during the early stages of growth.

This opening statement was delivered by Abdan Syakuro Lubis during his Doctoral promotion hearing in Administrative Sciences at the Postgraduate Program of the Faculty of Administrative Sciences, University of Indonesia (FIA UI), on Tuesday (16/1/2023) at the EDISI 2020 Auditorium, Building M, FIA UI Campus, Depok. Dr. Abdan presented his dissertation titled “Analysis of the Digital Startup Ecosystem in Indonesia.”

“According to Statista data from 2021, Indonesia only has six digital startups valued at over one million dollars, known as ‘unicorns,’ while the United States has 554 such companies. Although the development of Indonesia’s digital startup ecosystem shows potential, 92.90% of digital startups are still in the early-stage ‘valley of death,’ according to Mikti data from 2021,” Dr. Abdan stated.

Recent research on the digital startup ecosystem in the Greater Jakarta area (Jabodetabek), Dr. Abdan noted, indicates a positive influence of five key elements—networking, leadership, financing, human resources, and knowledge—on productive entrepreneurship during the seed capital stage. However, the study also highlights challenges such as Indonesia’s low competitiveness index in digitalization, limited access to capital, and regulatory and legal issues.

“To address these challenges, the researcher provides several recommendations for stakeholders. For the government, it is recommended to create specific regulations supporting digital businesses, enhance digital human resources capacity, and expand supporting infrastructure. For funding institutions, particularly Venture Capital and Angel Investors, it is suggested to not only provide funding but also assist in market validation during the early growth stages,” he explained.

Dr. Abdan emphasized that educational institutions should design more practical and industry-relevant curricula to meet the needs of digital startups. Meanwhile, digital startup founders are advised to strengthen adaptability and innovation, foster community collaboration, and enhance partnerships with other actors in the ecosystem.

“I highlight the crucial role of funding institutions in the digital startup ecosystem and suggest further research on investor behavior and Venture Capital practices in providing funding. Additionally, there should be an in-depth analysis of specific ecosystem actors, such as the government’s ‘1000 Digital Startups Movement’ program or university incubation centers,” he added.

In his dissertation, Dr. Abdan provides a comprehensive overview of the digital startup ecosystem in Indonesia by identifying challenges and offering strategic directions to overcome existing barriers.

During the Doctoral promotion hearing, Dr. Abdan became the 42nd Doctor from the Faculty of Administrative Sciences and the 230th Doctor in Administrative Sciences, graduating with the distinction of Cum Laude.

The Doctoral promotion hearing was chaired by Prof. Bernardus Yuliarto Nugroho, MSM, Ph.D., with Prof. Dr. Chandra Wijaya, M.Si., M.M. as the Promoter, and Dr. Eko Sakapurnama, MBA as the Co-Promoter. The examination panel included Dr. Ganesha Bayu Murti, Dr. Toto Pranoto, M.M., Dr. Effy Z. Rusfian, M.Si., and Dr. Fibria Indriati D. L., M.Si.