Hello reader, 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 | 
