Indonesia Ranks 2nd in “Startup Ecosystem” – The Strengths and Potential of Bandung
- Publish
- 2025/06/22
- Update
- 2025/08/16
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Introduction
The growth of startups serves as one of the key indicators of a city’s capacity for innovation.
This article will first present the rankings of Indonesian cities based on the Global Startup Ecosystem Index, which comprehensively evaluates startup activities across various cities. It will then focus on Bandung, a particularly noteworthy city, to examine its strengths and challenges.
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Bandung’s Startup Ecosystem in Numbers
Startup Ecosystem City Rankings
Below is the city ranking from the Global Startup Ecosystem Index 2025, a study conducted by StartupBlink on startup ecosystems. Among the cities recognized as “Best Cities for Startups,” five Indonesian cities ranked within the global top 1,000. Jakarta ranked first domestically and 30th globally, followed by Bandung in second place domestically and 261st globally.
In terms of startup ecosystems, Jakarta leads by a wide margin, with a total score of 32.251—18 times higher than Bandung’s score of 1.814, which holds the second position. Jakarta’s strength lies in the “E-commerce & Retail” sector, where it ranks 2nd in Southeast Asia and 17th globally.
Indonesia’s City Rankings in the Global Startup Ecosystem Index
- Jakarta (Global Rank: 30)
- Bandung (Global Rank: 261)
- Surabaya (Global Rank: 478)
- Denpasar (Global Rank: 646)
- Yogyakarta (Global Rank: 702)
- Medan (Global Rank: 1,030)
- Semarang (Global Rank: 1,215)
- Malang (Global Rank: 1,364)
About the Global Startup Ecosystem Index 2025
Since 2017, the Global Startup Ecosystem Index has annually quantified and ranked startup ecosystems around the world. The 2025 edition covers 1,473 cities across 118 countries. The evaluation takes into account dozens of parameters organized under three sub-scores:
- Quantity
Measures ecosystem activity levels, such as the number of startups, investors, and operational hubs. - Quality
Assesses the impact and success of ecosystem activities, including investment amounts, number of employees, presence of multinational companies, the number and scale of events, and influence of leading startups. - Business Environment
Evaluates the overall environment supporting startup growth, including diversity index, internet speed and costs, R&D investment levels, availability of technical services, visa accessibility, labor laws, and corporate tax rates.
Reference: StartupBlink “Global Startup Ecosystem Index p.202-203”
Bandung’s Startup Ecosystem: Ranked 2nd in Indonesia and 261st Globally
Strengths of Bandung
Ranked 2nd domestically in the Global Startup Ecosystem Index 2025, Bandung has made its mark by producing eFishery, the first unicorn company based outside Jakarta.
As Indonesia’s third-largest city and the capital of West Java Province, Bandung offers the following strengths in fostering a vibrant startup ecosystem:
- Robust Universities and Entrepreneurial Culture as a Talent and Technology Source Led by Institut Teknologi Bandung (ITB), Bandung is home to numerous universities strong in technology, design, and business. The city’s entrepreneurial culture fosters the emergence of small yet innovative, tech-driven startups.
- Expanding Ecosystem Bandung’s local startup ecosystem is growing, supported by hubs and communities. A pioneering initiative is the “Bandung Techno Park,” one of the oldest technoparks in Indonesia. In recent years, coworking spaces and rental offices serving as bases for entrepreneurs and communities have also been increasing. Support programs include incubation initiatives by ITB and Telkom University. Community activities such as “Startup Bandung” and various startup-related events are also thriving.
- Affordable Cost of Living and Quality Residential Environment Compared to Jakarta, Bandung offers lower costs for rent, labor, and office space. Its cooler highland climate and livable environment add to its appeal. The opening of the Whoosh high-speed rail has improved access to Jakarta, making Bandung an ideal base for entrepreneurs and digital nomads.
Challenges Facing Bandung
Compared to other cities in Indonesia’s domestic top 10 in the Global Startup Ecosystem Index 2025, Bandung shows a lower growth rate, having dropped 12 spots globally from the previous year. Several factors contribute to Bandung’s significant gap behind Jakarta and its stagnating growth, with one key issue being Jakarta’s overwhelming centralization.
In Indonesia, not only the number of startups but also the attention of investors and venture capital, as well as funding opportunities, are heavily concentrated in Jakarta. In terms of the number and quality of accelerators, coworking spaces, incubation programs, international events, partnerships, and overall influence and visibility, regional cities like Bandung still lag behind Jakarta.
Bandung’s proximity to Jakarta can be both a strength and a weakness for its startup community. Many promising engineers and entrepreneurs relocate to Jakarta for better career opportunities, making the retention of university graduates a challenge for Bandung.
Startups Originating from Bandung
Below is the 2025 Bandung startup ranking by StartupBlink, based on quarterly data on funding, web traffic, and number of employees.
Top Unicorn
- eFishery (AgriTech)
The only unicorn based in Bandung, eFishery provides tools and digital platforms to support the sustainable growth of the aquaculture industry.
Top Startups
- Evermos (E-commerce)
A digital platform that connects resellers with brands offering Muslim daily necessities, enabling individuals in regional cities to start selling without initial capital investment. - Waste4Change (Sustainability)
An environmental startup that supports waste reduction and recycling for corporations, individuals, and local governments, while also promoting landfill reduction and educational programs. - Finansialku (FinTech)
A platform enabling individuals and families to manage investments and budgets. - ASSEMBLR (Application Development)
A platform that allows anyone to easily create and share augmented reality (AR) content. - Praktis (Enterprise Technology)
A tool that supports supply chain operations to improve brand business efficiency. - Elevarm (AgriTech)
An agricultural value chain optimization platform that assists smallholder farmers while providing a stable supply of produce to businesses. - Gently (Consumer Goods)
A personal care brand that focuses on natural ingredients, safety, and gentleness, offering low-irritant skincare products. - Gelora (Enterprise Technology)
A digital platform that enables easy online reservations for sports facilities. - MYCL (Biotechnology)
Manufacturer of “MYLEA,” a renewable, leather-like material developed from agricultural waste and mushroom mycelium. - Bobobox Indonesia (Smart Accommodation Services)
Provides affordable, clean, and comfortable capsule hotel-style accommodations.
Reference: StartupBlink “39 Top startups in Bandung for June 2025”
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Taxi Troubles
IT company
We had planned to use a ride-hailing app for local transportation; however, due to the combination of the morning rush hour and heavy rain, no taxis were available even after waiting for over 30 minutes. In the end, we arranged a motorcycle taxi on short notice, but heavy traffic caused further delays. As a result, we were forced to postpone one of the two business meetings scheduled for the morning.
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Interpreter Issues
Cosmetics manufacturer
While traveling from central Jakarta to a client in the suburbs, our freelance local interpreter suddenly canceled. Since English was not widely understood in the area, we were unable to fully convey the finer nuances of our business discussions, which was highly regrettable. We came to realize that it would have been better to engage a professional interpreter through a reputable agency rather than relying on a low-cost freelancer.
Bandung’s Startups in Action
Top Startup from Bandung: Evermos
Watch the video
Founded in 2018, Evermos is building a distribution network in suburban and regional areas and offers an integrated commerce service that complies with Sharia (Islamic law). Users can learn through the Evermos app, workshops, and communities, enabling them to start resale businesses without needing initial capital.
Evermos is especially popular among housewives who wish to utilize their spare time between household and childcare duties. The company now operates Indonesia’s largest resale network, with over 900,000 active sellers and more than 6,400 SME partners.
Evermos has received numerous industry awards, including Forbes Asia’s “100 to Watch,” the United Nations Women’s “Indonesian Women Empowerment Principles 2022,” and the Nikkei Asia Award 2023. It is one of the most promising startups attracting attention today.
Waste4Change’s Recycling Facility
Watch the video
Founded in 2014, Waste4Change celebrated its 10th anniversary in 2024. The company collects waste from households, offices, and retail stores, contributing to waste reduction and addressing environmental issues through recycling.
The featured video showcases the “Material Recovery House” built by Waste4Change in Bandung Regency. All collected food waste is recycled into compost or animal feed, with nothing sent to landfills. Plastics, metals, and other materials are carefully sorted by experienced operators and supplied to partner recycling companies.
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
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●Creative agency
I traveled without arranging an interpreter, but when I faced difficulties dealing with the local police, they came to my aid.
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●Recruitment agency
When I suddenly needed a conference room, I truly appreciated that they arranged one on my behalf.
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●Cosmetics manufacturer
After finishing drinks with colleagues late at night and being unable to find a taxi, they arranged a car for us, which was a great help.
Can Bandung Overcome Jakarta’s Overwhelming Dominance?
Backed by excellent educational institutions, abundant technical talent, and a cost-effective urban environment, Bandung is steadily establishing itself as Indonesia’s second leading startup city after Jakarta. The success of diverse startups, including the unicorn eFishery, highlights the city’s growth potential.
At the same time, Bandung’s startup ecosystem continues to face challenges such as the concentration of opportunities in the capital, Jakarta, and the outflow of local talent. Moving forward, fostering an independent and self-sustaining ecosystem while strengthening external collaborations will be key to Bandung’s further development.
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