Why startups fail in Indonesia

spicyayam

A good read for anyone contemplating starting a business here : https://www.techinasia.com/talk/foreign-startups-fail-indonesia/

[COLOR=#444444][FONT=Merriweather]To start with, unless you’re not planning on scaling-up within your first two years of business, be ready to face solid challenges when it comes to recruiting. Skill sets availability will differ from a city to another, and you can expect a turn-up rate below 15 percent for all your scheduled interviews, as well as a plethora of early resignations.[/FONT][/COLOR]

matsaleh

spicyayam wrote...[COLOR=#444444][FONT=Merriweather][I]and [/I][/FONT][/COLOR][B]you can expect a turn-up rate below 15 percent for all your scheduled interviews, as well as a plethora of early resignations.[/B]

I can attest to that. Many friends say the same.

Markit

The article was focused on IT skills and startups. Why would anyone start an IT company where the locals think digital watches are pretty cool still? This comes back to the usual problem we see a lot of in Bali in that people want to start some sort of business here so that they can be in Bali and then try and shoe-horn their business into the local economy. Surprise, surprise when it doesn't fit? As for no-shows can't say that I've had that experience. People come knocking asking for work - probably since I'm such a great guy to work for...?!

bakung

matsaleh wroteI can attest to that. Many friends say the same.

I said before in a similar thread, the first 2 things on a applicants mind from the outset is, A/ Will we actually be expected to do anything ? ( and i am deadly serious with that one as i got asked by a girl applying for a housekeeping post ). B/ What is the corruption like in this business can or cant ? ( again one of my senior staff told me she gets asked this from every applicant while she is showing them round at the end of the interview ). If the answer to these 2 are an empathic NO then they will either say they will think about the job offer or they will say ok we can start next number 1 and guess what you will ever see or hear from then again. You will go through a 100 to end up with a good crew of ten but the downside is you will lose a few quid in the process before you catch them at it or they are gone before you find out. Welcome to Bali.

mugwump

In a small community it has been my experience to try to learn who is seeking employment rather than looking for someone to fill a job. Maybe it is just a Balinese thing or an Indonesian thing, but I have found shyness when trying to present an opportunity. The other factor seems to be control by existing employees that don't want potential competition and all that entails in this society.

Nerbares

most of staratups fail in Indonesia because I think it is only profitable to run IT business here in Indonesia

Markit

Nerbares wrotemost of staratups fail in Indonesia because I think it is only profitable to run IT business here in Indonesia

Clearly you are on some medication.

Nerbares

Markit wroteClearly you are on some medication.

Let explain what I mean I did no say that any kind of business is doomed to failure in Indonesia but IT business has more chances for success than any other (most of them are certainly doomed to failure) especially in developing countries. I have many arguments behind my theory (I can give them here) but what do you have? what proves that I am on medication.. I can say that you are a jellyfish then with no arguments.

Markit

80% of the good going businesses in Bali are tourist oriented and the rest of Indonesia is mixed agrarian and local businesses feeding local people - not IT. I come from an IT background and can tell you that the infrastructure/access to knowledge or other IT infrastructure in Indonesia is woefully lacking for any meaningful or hopeful IT startup. I used to live and work in IT in San Jose (Silicon Valley), Munich and London and know a little of where I speak. If you want to make a small fortune in IT here - start with a large fortune. See a doctor.

mugwump

Thank you as a new person here believing in yourself and saying it. Please stay and continue to contribute. This should be a forum of many voices.

Markit

Did you know that G-O-D is D-O-G spelled in backwards? Keep taking the pills. PM Mugwump at your pleasure.

Fred2

All I see is more english language schools starting, BCA has opened a large processing centre is that IT?

Nerbares

Markit wrote80% of the good going businesses in Bali are tourist oriented and the rest of Indonesia is mixed agrarian and local businesses feeding local people - not IT. I come from an IT background and can tell you that the infrastructure/access to knowledge or other IT infrastructure in Indonesia is woefully lacking for any meaningful or hopeful IT startup. I used to live and work in IT in San Jose (Silicon Valley), Munich and London and know a little of where I speak. If you want to make a small fortune in IT here - start with a large fortune. See a doctor.

you do not need to disclose some information from your CV to me.. we are talking about concrete things like the %, numbers and real money.. IT infrastructure is a very loose concept, all what you need for your IT business here is to find a team of programmers who have their own laptop with some software like integrated environment for Python.. that is all.. they do not even need fast Internet connection.. they can make a real product which can be sold in any country.. but tourism sucks it is reality it is not profitable anymore..many IT companies from Europe and USA had moved to Bali long time ago, some of them have clients in Europe but their staff is here they pay in average 500$ instead of 5000$ salary - it is very well known.. many programmers here are as smart as in Europe but much cheaper.. if you invest in production or tourism you are doomed to failure (or have a very small chance of success) therefore IT is the only one opportunity in our case.. but again all depends on other factors like fortune, luck, blessing, God etc I agree that there might be a chance to open a restaurant and become more successful than in IT field (that flies in the face of conventional logic), but conventional logic suggests IT as number one in the list of our options here in Indonesia or other developing countries.. Find real God

Nerbares

language schools are not IT, you mean BCA bank? then it is about software related to banking

baliweightloss

"can expect a turn-up rate below 15 percent for all your scheduled interviews" that doesn't sound promising and I'm only just beginning

sakumabali

Markit wrote80% of the good going businesses in Bali are tourist oriented and the rest of Indonesia is mixed agrarian and local businesses feeding local people - not IT

tourist and export oriented ;) actually there's real good money in "feeding local people" - most of the F&B would choose the locals over the (more & more chinese & australian) tourists - simply because they spend more

Fred2

baliweightloss wrote"can expect a turn-up rate below 15 percent for all your scheduled interviews" that doesn't sound promising and I'm only just beginning

Hi Sophie, welcome to the forum. As the title of this thread is "startup Fails", How has your experience been starting a business in Bali compared to Costa Rica? I know dealing with government official's is a nightmare, trying to open a bank account is a days job. I see you are advertising for staff, is that local and foreigners? Hope all goes well with Bali Weight Loss.

Markit

sakumabali wrotetourist and export oriented ;) actually there's real good money in "feeding local people" - [COLOR=#ff0000]most of the F&B would choose the locals over the (more & more chinese & australian) tourists - simply because they spend more[/COLOR]

And you know this how?

sakumabali

ain't no secret ;) numbers don't lie - restaurants in the south craving for loaded Jakarta & Surabaya Indonesians

Markit

sakumabali wroteain't no secret ;) numbers don't lie - restaurants in the south craving for loaded Jakarta & Surabaya Indonesians

Where are your "number" that don't lie? Admittedly I'm not down there often but when ever I am I don't see expensive restos loaded with Indonesian. I see cheap warungs with masses of Indonesians eating Nasi Goreng and the expensive restos with only white faces... In my experience only a few warung seem to last longer than a couple of years here. But what do I know? Oxford dictionary: craving - A powerful desire [I][B][COLOR=#ff0000]for[/COLOR][/B][/I] something: 'a [B]craving[/B] for chocolate'