Indonesia's tech rules haven't caught up

Why Indonesia's latest VC regulation is drawing pushback, and what Nadiem Makarim's case means for founders entering public office.

Read from your browser Daily Newsletter Welcome to Tech in Asia's daily newsletter, your essential dose of Asia's tech and startup buzz. Subscribe to this newsletter or send story tips to editors@techinasia.com. Ensure our articles appear in your Google searches: IN FOCUS Indonesia's new VC rules test foreign investors' appetite Nadiem Makarim's case exposes a legal blind spot for founders entering government The long road to Shein's IPO may finally be nearing its end Hello Betamax, In my recent conversations with Southeast Asian VCs, most of them have said they are in "wait-and-see" mode when it comes to deploying capital. They are being even more cautious in Indonesia due to the stream of negative news in recent months, from the eFishery scandal to the criminal convictions of Gojek founder Nadiem Makarim and executives from state-owned VCs MDI Ventures and BRI Ventures. Scandals aren't the only thing holding investment up. In December 2025, Indonesia's Financial Services Authority (OJK) introduced a new regulation requiring foreign VC firms to obtain OJK approval to have a representative office in the country. Those with existing offices were given six months to comply. The requirements are quite burdensome for VCs. They include appointing a country head who must undergo a fit and proper test, submitting three years of audited financial statements, and providing regular reports to the OJK. In today's first featured story, I examine the new regulation and how regional VCs, founders, and industry associations have responded to it. So far, none of the affected VC firms appear to be following the new rules. It's not just VCs navigating unclear regulations. Makarim's case highlights a gap in Indonesia's legal framework for startup founders who enter public office. While ministers are required to step down from management roles, they are still allowed to retain their equity stakes, leaving questions about conflicts of interest and legal liability. Indonesian lawyer Alldo Fellix Januardy takes a closer look at the issue in today's second featured story. Both stories show the friction between tech operations and government intervention. And with Indonesia's spotlight already growing dimmer among investors, these could signal an even tougher road ahead for the country's startups. Jofie Yordan, journalist TOP STORIES 1️⃣ Indonesia's new VC rules struggle to win foreign buy-in Months after the new regulation took effect, foreign VC firms are still waiting for clarity instead of seeking approval. Most are trying to interpret the rules, while some have said outright that they do not intend to comply. With startup funding in Indonesia already subdued, the regulation could reinforce the long-standing preference for Singapore holding companies over direct investment into the country. 2️⃣ Indonesia's $45m lesson for founders eyeing public office The country's startup ecosystem has produced founders capable of contributing to the government, but its legal framework has not kept pace. Unclear rules on equity ownership, beneficial ownership, and conflicts of interest leave founders and investors exposed to legal uncertainty. Such a gap means Indonesian founders must have safeguards in place for potential boardroom-to-government transitions. This piece gives a rundown of what they should look out for to make their entry into public office seamless. FINTECH BENCHMARK MEETS REGULATORY PUSH MAS' latest move raises the bar for Singapore fintech. With the Monetary Authority of Singapore (MAS) launching the Future of Finance Institute to accelerate AI and tokenization, the city-state's digital finance ecosystem is shifting from experimentation to broader industry adoption. The new initiative is designed to connect financial institutions and tech providers by offering shared resources and expertise to support the adoption of emerging financial technologies. As the industry baseline moves toward infrastructure-grade execution, unverified product claims carry less weight. Fintech companies need clearer proof of operational traction, reliability, and market relevance, especially in a challenging macroeconomic landscape. Singapore's Top Fintech Companies 2027, jointly organized by Tech in Asia and Statista, gives fintech firms an independent validation benchmark to make their commercial milestones visible to enterprise clients, global investors, and key partners. If your company is building the next phase of fintech in Singapore, this is your opportunity to be considered. Apply now. SPOTLIGHT Shein inches toward an IPO Is Shein finally going public? It feels like the ultra-fast fashion giant has been trying to list forever, and it could make a big step to realizing those dreams this week. The firm is reportedly set for a Hong Kong Stock Exchange listing hearing on July 16. The hearing would pave the way for an eventual IPO in the city. Shein previously tried to make its market debut first in New York and then London. However, a combination of geopolitical pushback and regulatory blocks put paid to those efforts. Ironically, after years of trying to "China-shed," embracing its roots in the country may finally get Shein over the line. In March, we analyzed how the company arrived at this point and what it signals for other China-linked firms with IPO ambitions of their own. EVEN AI AGENTS NEED CONTEXT In partnership with Not every AI agent is automatically useful. To act reliably, agents need access to data that is fresh, accurate, and easy to retrieve. For many businesses, data that arrives too late is data that has already lost its value. According to IBM, 63% of enterprise use cases must process data within minutes to remain useful. The challenge lies in that enterprise data often sits in fragmented systems - across warehouses, search engines, log stores, and vector databases. Built on Apache Doris, VeloDB helps enterprises consolidate real-time analytics, search, and AI retrieval into one engine. Through IMDA Accreditation, companies like VeloDB are supported in bringing enterprise-ready technology to more organizations. Learn more about the IMDA Accreditation program. PRESS PEEKS The following press releases were published as they were received, without any editing from the Tech in Asia team. You, too, can publish your own press release on our site by simply filling out this form. Our team will get back to you by the next business day. Kisti - Kisti Wants to Become Asia's Default "Pay Later" Button, Starting in Bangladesh: Kisti is preparing to launch zero-interest Buy Now, Pay Later in Bangladesh in 2026, with a vision to expand across Asia. WHO'S HIRING You can post a job here or search for jobs here. Marketing Manager (EduTech) at Cakap | Tangerang, Indonesia IT Governance, Risk, and Compliance (GRC) at PT. ASLI Rancangan Indonesia | Jakarta, Indonesia Digital Marketing Specialist at Boleh Dicoba Digital | Bandung, Java, Indonesia ADVERTISE | SUBSCRIBE | HIRE | FIND JOBS P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Tech in Asia thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content. Too many emails? Switch to a different frequency or get new content through our preference center, or unsubscribe. You can also remove yourself from all Tech in Asia emails over here. Copyright © 2026 Tech in Asia, All rights reserved. Tech in Asia (Podium Level 3), 1000 Toa Payoh North, News Centre, Singapore 318994