The Uncomfortable Truth About AI Business in Indonesia

Why Fixed Salary Fails in Indonesia’s AI Industry

And Why So Many AI Companies Die Before Year Three

Indonesia is one of the most promising digital markets in Southeast Asia. The population is large, mobile-first, and increasingly exposed to AI-driven products. Yet paradoxically, AI business companies in Indonesia struggle to survive. Many shut down in less than three years.

Some get quietly acquired. Others disappear without notice. And many international AI companies hesitate—or completely refuse—to enter the Indonesian market

One of the most misunderstood reasons behind this reality is compensation structure, especially the expectation of fixed salary without achieved goals

This article explains the hard truth behind why this model fails in Indonesia’s AI ecosystem

AI Business Is Not a Traditional Corporate Game

Most AI companies in Indonesia are:

• Early-stage or growth-stage

• Revenue-dependent (not subsidy-backed)

• Still building market education

AI is not yet a compulsory purchase for most Indonesian businesses. Unlike telco, ERP, or banking software, AI solutions are still seen as optional, experimental, or “nice to have.”

This means revenue is not guaranteed. It must be created

A fixed salary without performance in this environment forces companies to :

• Burn capital too early

• Pay for learning instead of results

• Carry non-performing costs

For a young AI company, this is often fatal

Why AI Sales in Indonesia Is Extremely Difficult

In mature markets, AI budgets already exist. In Indonesia :

• Budgets must be created from zero

• Decision-makers need education, not just pitching

• Sales cycles are long and consultative

AI is still sold, not ordered

If a business role cannot :

• Open executive-level conversations

• Translate AI into business impact

• Convert curiosity into revenue

Then there is no economic justification for guaranteed income.

This is not harsh—it is simply business logic

Fixed Salary Creates the Wrong Behavior (Cultural Reality)

This is an uncomfortable truth, but it must be said

In many Indonesian work environments:

• Fixed salary creates a safety zone

• Safety zone reduces urgency

• Reduced urgency leads to excuses

Common excuses sound like :

• “The market is not ready”

• “Clients don’t understand AI”

• “AI is too complex to sell”

Meanwhile, burn rate continues

AI companies cannot survive on excuses. They survive on ownership and accountability.

Target-based income forces people to think like business owners—not employees waiting for instructions

AI Sales Is an Entrepreneurial Role

Selling AI solutions is closer to :

• Building a startup inside a startup

• Acting as a revenue partner

• Carrying real business responsibility

That’s why in healthy AI companies :

• Income is earned, not promised

• Commission, bonus, and retainers dominate

• Fixed salary only appears after proven traction

No deal means no revenue.No revenue means no salary

This is not exploitation—it is economic survival

Low Targets, High Opportunity

Contrary to popular belief, most AI companies that adopt this model :

• Set very low initial targets

• Provide full support:

  • Product & engineering

  • Strategy & positioning

  • Technical backup

  • Brand & credibility

The only requirement is simple :

Prove you can close

If someone cannot achieve even a low target, a fixed salary would only delay failure, not prevent it

Why So Many AI Companies Shut Down Before 3 Years

This compensation misunderstanding is one of the main reasons why :

• Many AI startups die within 24–36 months

• Cash flow collapses before product-market fit

• Founders spend more time paying salaries than building revenue

AI companies that survive usually :

• Cut fixed costs early

• Shift to performance-based structures

• Focus only on revenue-generating roles

Those that don’t—disappear

Why International AI Companies Avoid Indonesia

From the outside, Indonesia looks attractive. From the inside, international companies see :

• Long sales cycles

• Low urgency for AI adoption

• High expectation of fixed compensation

• Low tolerance for performance-based roles

This creates a high-risk, low-predictability environment

As a result:

• Many global AI firms delay entry

• Some enter through partners only

• Others avoid Indonesia entirely

Why Many AI Companies Get Acquired

You may notice a pattern :

• Well-known AI startups suddenly disappear

• Founders announce “strategic acquisition”

• Products live on under a different brand

Often, this happens because :

• The technology is valuable

• But the business model is bleeding

• Fixed operational costs kill sustainability

Acquisition becomes an exit—not a victory

Final Truth

Fixed salary without achieved goals in AI business is :

Paying for hope, not results

And hope is not a business model

For AI to truly grow in Indonesia, the ecosystem must shift from :

• Job-seeker mentality → Ownership mentality

• Guaranteed income → Earned income

• Comfort → Accountability

Only then will AI companies last longer than three years

Futurescale Digital Technology believes AI business is built by partners, not passengers Revenue-first thinking is not cruelty—it is the foundation of survival and scale