1. Although Indonesia Education eco-system is among the largest globally, it is marred by inadequate public spending and a low teacher student ratio

Home to the fourth largest population in the world, Indonesia Education ecosystem is one of largest in the world by volume.

However, the country has lagged behind its peers in the public expenditure on education. This has limited equitable access to education – especially for the relatively poor populace in remote islands wherein the Student Teacher Ratio is much higher than the national average.

Indonesia Education key Stats

Public Expenditure on Education

% of GDP, CY 19

2. This has led to a relatively low quality of education, manifesting in a low ranking in the PISA global competence study

The underspending on education has resulted in sub par facilities and training for students.

This is reflected in the low performance of Indonesia in PISA global competence study – ranking amongst the lowest out of 79 countries. There is also a dearth of qualified teaching personnel in Indonesia which is further aggravating these problems.


Program for International Student Assessment (PISA) Score

Country Score, 2009-201


Program for International Student Assessment (PISA) Score

Country Score, 2009-2018


Program for International Student Assessment (PISA) Score

Country Score, 2009-2018

3. The gaps in the supply side has driven several Edtech business models to crop up over the past 6 years, catering to a wide array of needs

These supply side gaps have provided fertile ground for a plethora of EdTech business models to find space within the ecosystem.

These Edtech firms offer diversified services targeting all the stakeholders (incl. students, parents and facilitators), and can be broadly bucketed into consumer and institution focused services.


This list is Non-exhaustive


4. These startups however had to navigate through numerous challenges and limited access to funding compared to global peers

However, the industry is beset with multiple challenges that is acting as barrier for these players to achieve critical scale.

The traditionally low willingness to pay from consumers increases the costs for acquiring and retaining customers while poor internet bandwidth in Java+ regions is limiting EdTech Access.

The funding received for Edtech firms in Indonesia when compared globally or to countries like India, is also very low till date.

Indonesia Edtech Key Challenges

EdTech Funding Activity

CY 19, USD Bn

5. However, COVID has instilled fresh impetus for growth in the ecosystem– mitigating challenges and promising attractive returns for investors

Government has increased its focus on digitizing education through initiatives like e-rapor recently, post COVID.

EdTech players have also been nimble in adapting their offerings in the New Normal, characterized by partnerships and disbursement of free content to consumers. These efforts have led to rapid adoption of their services for students and facilitators alike.

This has led to renewed interest from investors as they try to back the “next set of potential unicorns in Indonesia”

Players have received government support and have adapted their offerings while receiving fresh funding at the wake of COVID….

… and have seen a rapid uptick in demand for their services

“We have jointly hosted close to 1 million students in the first 2 months of the outbreak and the numbers keep on increasing”

Local Consumer Focused EdTech Player

“Education technology will bring about the next group of unicorns in Indonesia just like we have seen in the case of eCommerce and SuperApps”

Ministry of Communication and Informatics