When 86 percent of Indonesian small businesses express confidence in their 2026 growth, as seen in CPA Australia’s 17th Annual Asia-Pacific Small Business Survey, the figure represents more than just an impressive statistic—it signals a fundamental shift in mentality.
Having weathered various global and domestic pressures, this confidence suggests that small businesses are no longer merely surviving but are positioning themselves as a maturing engine of economic growth.
Findings from the survey provide a comprehensive overview of the current condition. The survey, which polled 4,166 small businesses across 11 markets, reveals that optimism in Indonesia surpasses the Asia-Pacific average.
Approximately 71 percent of small business owners in Indonesia believe the national economy will grow, exceeding the regional average of 65 percent. This indicates relatively strong confidence in the country's economic direction, despite looming global uncertainty.
A key foundation of this confidence is technological investment. Throughout 2025, 72 percent of small businesses in Indonesia experienced the positive impact of technology on their profitability. This exceeded the survey's average of 56 percent.
Priya Terumalay, CPA Australia's Regional Head for Southeast Asia, emphasized that strong and rapid returns on technology investments are the primary drivers of high digital adoption among small businesses.
Beyond these figures, there are nuances to consider. Current technology investments tend to focus on customer-facing aspects, such as mobile apps and digital payment systems. While these are vital, they are not yet sufficient to establish a long-term competitive advantage.
Technologies, such as artificial intelligence (AI), cloud-based services, and customer relationship management software, actually hold even greater potential for driving sustainable productivity and competitiveness. This suggests that digital transformation has yet to fully penetrate the core of business operations.
Declined online sales
Despite recognition of the impact of technology on profitability, the use of digital payment systems and online sales has slightly declined.
The share of small businesses generating at least 10 percent of their sales from digital payments dropped to 69 percent in 2025, down from 74 percent the previous year.
Online sales followed a similar trend, slipping from 68 percent to 64 percent. This situation suggests that digitalization does not always follow a linear path, as business owners continue to seek a balance between online and offline channels in their business strategies.
Meanwhile, the threats emerging from the digital landscape are becoming increasingly tangible. Approximately 49 percent of small businesses reported losses in terms of both time and finances, resulting from cyberattacks.
Ironically, only 45 percent of small businesses carried out cybersecurity monitoring in the last six months. This gap shows that awareness of risks has not been fully balanced with adequate preventive measures.
In this regard, investment in technology should not be viewed merely as a tool to boost revenue, but also as a means to protect business continuity.
Growth optimism is further reflected in workforce expansion. Approximately 40 percent of small businesses increased their headcount in 2025, with the figure projected to rise to 52 percent in 2026.
This suggests that business expansion is moving beyond the planning phase and into reality. However, this growth brings its own challenges, particularly regarding financing needs.
Around 78 percent of small businesses require external funding support, a figure that indicates how access to capital remains a crucial issue.
Despite these positive indicators, one area is showing a slowdown: innovation. Only 28 percent of small businesses plan to introduce new products, services, or processes unique to the Indonesian market in 2026, down from 37 percent the previous year.
The decline may have been influenced by rising operational costs and global uncertainty, which prompted businesses to exercise more prudence.
Young entrepreneurs' role
The role of the younger generation of entrepreneurs has become increasingly vital. Data shows that 57 percent of small business owners in Indonesia are under the age of 40—the highest proportion among all markets surveyed.
This generation’s defining characteristics—a higher risk appetite, a high degree of technological adaptability, and ambitious expansion goals—represent a valuable asset for the future of Indonesia's economy. These young people bring not only fresh energy but also a more open-minded perspective toward change.
The core strength of Indonesian small businesses seems to lie in their ability to learn and adapt.
The focus on customer satisfaction, which is considered one of the drivers of positive performance in 2025, shows that business players have a greater awareness of the importance of customer experience and building loyalty.
When coupled with more strategic technology adoption and mature business management, the opportunities for sustainable growth become significantly greater.
Nevertheless, optimism must be grounded in risk readiness. Without adequate cybersecurity, digital transformation could backfire.
Growth without innovation could potentially cause businesses to lose their relevance. Meanwhile, expansion without a strong financial plan risks triggering new pressures.
To this end, the path ahead is not simply a matter of moving faster, but of moving smarter.
What this survey illustrates is a dynamic small business landscape that is full of potential, yet fraught with challenges. While high optimism is vital, it is no guarantee of success.
Going forward, this optimism must be transformed into concrete strategies, prudent decision-making, and a strong commitment to continuous learning.
If these are put into practice, the 86 percent confidence figure will go beyond expectations; it will mark a new chapter where Indonesian small businesses emerge as a robust and highly competitive backbone of the nation's economy.
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Translator: Hanni Sofia, Raka Adji
Editor: Azis Kurmala
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