Indonesian Startup Leaders Cut Salaries to Protect Jobs

VOXBLICK

Senin, 26 Januari 2026 - 01.35 WIB

Indonesian startup executives (Photo by Tima Miroshnichenko)

VOXBLICK.COM - Indonesian Startup Leaders Cut Salaries to Protect Jobs

The Indonesian startup ecosystem, long regarded as one of Southeast Asia’s most dynamic and promising, is currently facing significant economic headwinds.

Amid global market volatility, rising inflation, and tightening funding opportunities, many Indonesian startup leaders are taking an unprecedented step: voluntarily slashing their own compensation to preserve jobs and maintain team stability. This bold move not only showcases the resilience of Indonesia’s business community but also signals confidence to global investors about the country’s burgeoning digital economy.

According to a recent report by the Indonesian Venture Capital and Startup Association (AMVESINDO), more than 60% of surveyed startup founders and C-level executives have implemented pay cuts of up to 50% since the fourth quarter of 2023. These

measures, particularly prevalent among tech, e-commerce, and fintech startups, are aimed at extending operational runways and preventing mass layoffs during a period of economic uncertainty.

The Economic Climate Driving Change

Indonesia’s startup sector has experienced meteoric growth over the past decade, producing “unicorns” such as Gojek, Tokopedia, and Bukalapak. However, 2023 and early 2024 have brought new challenges.

A global downturn in venture capital funding has forced startups to prioritize profitability and sustainability over rapid expansion. Data from DealStreetAsia shows that Indonesian startups raised $2.3 billion in 2023, a 38% drop compared to the previous year. This constrained funding environment has compelled founders to make tough decisions to safeguard their teams.

Many startup leaders recognize that retaining talent is crucial for long-term innovation and competitiveness.

By accepting personal pay cuts, executives are sending a strong message of solidarity and commitment, ensuring that companies can weather the economic storm without sacrificing their core human capital.

Case Studies: Leadership in Action

Several high-profile Indonesian startups have publicly shared their approaches to cost management and employee retention. For example:

Ruangguru, the prominent edtech platform, announced that its co-founders and senior management would take a 40% salary reduction, enabling the company to avoid layoffs and continue investing in product development.
Xendit, a leading fintech startup, reported that its leadership team collectively agreed to forego bonuses and cut salaries by up to 30%, prioritizing the retention of engineering and customer support staff.
Traveloka, a major player in online travel, implemented a similar policy, with top executives taking compensation cuts to preserve jobs amidst a sluggish travel recovery.

These examples reflect a broader trend of empathetic leadership and responsible corporate governance in Indonesia’s startup community.

Investor Confidence and Market Resilience

Despite short-term challenges, international investors remain optimistic about Indonesia’s long-term prospects.

The country’s large, tech-savvy population, rapid digital adoption, and supportive regulatory environment continue to attract interest from global venture capital and private equity funds. According to Bain & Company, Indonesia is expected to remain Southeast Asia’s largest digital economy, projected to reach $150 billion in gross merchandise value by 2025.

Industry analysts note that the willingness of Indonesian startup leaders to make personal sacrifices increases investor trust and strengthens the perception of responsible risk management.

This resilience also positions Indonesia as a regional example of how startups can adapt to economic shocks without resorting to mass layoffs, which often have long-term negative impacts on innovation and employer branding.

Implications for Indonesia’s Startup Ecosystem

The decision by Indonesian startup founders to cut their own salaries is more than a cost-saving measureit is a strategic move to preserve the talent and culture that underpin the sector’s growth.

As the funding landscape gradually recovers, startups that retain their skilled teams will be better positioned to capitalize on new opportunities.

Moreover, this trend may inspire similar actions across Southeast Asia, strengthening the region’s reputation for responsible entrepreneurship and community-oriented leadership.

For investors, Indonesia continues to offer a compelling blend of growth potential, resilient leadership, and a maturing digital market that is steadily navigating global uncertainties.