Inflation burst could hit Indonesian startups hard after era of fast growth

WHEN the Indonesian government hiked fuel prices by 30 per cent in September, it was a sign that inflation had well and truly landed in Indonesia, and could start to hurt both the average citizen and the country’s businesses.

Until the fuel price jump, Indonesians had been largely unaffected by roiled public markets and global geopolitical tensions. Home to a market size of over 270 million people, Indonesia has been a largely inward-facing economy, with its startups often not planning to expand outside of the country.

“The gas prices have really shaken up the individual and impacted human behaviour,” said Vidit Agrawal, co-founder of earned-wage access platform Gajigesa. (* see amendment note below)