How to Validate a Startup Idea Before Building It: A Framework from Jakarta Digital Valley

Startup founders often jump straight into building a product, but Fajar Anugerah, a business and leadership development professional with over 20 years of experience, argues that this is a major mistake. At Startup Lokal Meetup v48, he presented a clear, actionable framework to validate a startup idea before writing a single line of code. The core principle: test the idea’s market viability first, not the technology.

Why most startups fail before they launch

Anugerah opened with a stark reality: 95% of startups fail. This statistic isn’t about bad execution or poor funding—it’s about building something that no one wants. He cited a failed incubator program in Bandung where 1,500 startups were accepted, only 20 made it to the next stage, and fewer than 10 could be commercialized. The root cause? Founders assumed their idea was valuable without testing it with real users.

"95% of startups fail. I don’t want this to happen to you. The problem isn’t the idea. It’s that you didn’t test if anyone would buy it."

He emphasized that the failure rate isn’t due to lack of talent or effort. It’s because founders skip the most critical step: validation. They build a product and then ask, "Who will use this?" The answer is usually no one. The solution is to reverse the process.

The three-step validation framework

Anugerah introduced a three-phase model to de-risk startup development. Each phase is designed to answer one question: Is this idea worth building?

1. Create: Let the idea exist freely

The first phase is creative freedom. Founders are encouraged to explore any idea—no filters. This is where brainstorming happens, where passion drives the process. It’s the stage of pure ideation, where no idea is too wild. Anugerah stressed that this phase is essential for innovation, but it must not be mistaken for validation.

"You can do anything you want. Be creative. But this is not the time to ask if it will sell."

2. Choose: Test the idea’s market value

The second phase is where the real work begins. Founders must now ask: Can this idea be sold? This is the moment of truth. Anugerah calls this the "sell first" principle. Before investing in development, founders must validate demand.

He gave a clear example: If you want to build a new messaging app, ask yourself: Is there a market for another WhatsApp? The answer is no—WhatsApp already dominates. If you’re building a game, ask: Is there room for another game like Candy Crush? If the answer is no, don’t build it. The key is to test the idea with potential users before writing a single line of code.

"Don’t build it. Ask: Will people pay for this? If not, move on."

This phase is about eliminating bad ideas early. Anugerah advised founders to talk to potential customers, conduct surveys, or even create a fake landing page to see if people are willing to sign up. If no one shows interest, the idea fails the test.

3. Commercialize: Invest only after validation

Only after an idea passes the second phase should founders move to development. Anugerah called this the "commercialization" stage. Here, the idea is no longer just a concept—it’s a product with proven demand.

He emphasized that this is where funding and mentorship come in. Telkom’s Indigo Accelerator, for example, only supports startups that have already validated their idea. The goal is to accelerate growth, not to fund untested concepts.

"You don’t need funding to build a prototype. You need funding to scale a product that already has users."

This phase includes access to resources like mentorship, infrastructure, and investor networks. Anugerah noted that Telkom’s ecosystem—spanning 20 creative camps across Indonesia—exists to support startups that have already passed the validation stage.

The role of ecosystems like Jakarta Digital Valley

Anugerah highlighted that Jakarta Digital Valley is not just a physical space but a full ecosystem designed to support startups through each phase. It provides the tools, networks, and infrastructure needed to move from idea to market.

The ecosystem is structured in layers:

• Creative Camps: 20 locations across Indonesia to nurture early-stage ideas.
• Incubators: In Bandung and Yogyakarta, where startups receive mentorship and seed support.
• Accelerators: At Jakarta Digital Valley, where validated startups get access to Telkom’s 100 million customers as early users.
• Venture Capital: Through Indigo Venture and Metra Digital Innovation, which provide follow-on funding and exit opportunities.

"You don’t need to build everything alone. Use the ecosystem. It’s there to help you validate, grow, and scale."

The key insight: startups don’t need to go it alone. By leveraging existing infrastructure and networks, they can reduce risk and accelerate growth.

How to apply this framework today

Anugerah’s framework is simple but powerful. Founders can use it immediately:

1. Brainstorm freely—no judgment, no limits.
2. Test demand—ask real users if they would pay for your idea. Use landing pages, surveys, or mockups.
3. Build only if validated—if people show interest, then invest time and money in development.

He warned against the trap of building a product and then trying to sell it. The reverse is far more effective: sell first, then build.

"If you want to succeed, don’t start with the product. Start with the problem. Then find the solution. Then test it."

Key Takeaways

• 95% of startups fail not due to bad execution, but because they build products no one wants.
• Founders must validate demand before investing in development.
• Use a three-phase model: Create (freely), Choose (test market value), Commercialize (build only after validation).
• Leverage ecosystems like Jakarta Digital Valley to access mentorship, infrastructure, and early users.
• The most important question is not "Can I build this?" but "Will anyone pay for this?"