Worldcoin’s Struggle to Scan Its Way into Indonesia

A Silicon Valley Dream Meets Indonesia Skepticism

Picture this: a chrome orb the size of a melon, scanning the iris of a street vendor in Jakarta’s bustling Tanah Abang market. In exchange, she receives a handful of digital tokens—Worldcoin’s promise of financial inclusion. To its creators, this is the future. To Indonesians, it feels like a sci-fi heist film where the hero is the one being robbed.

Worldcoin, the brainchild of Sam Altman (OpenAI’s CEO) and backed by Silicon Valley’s glitterati, aimed to build a global digital identity system using biometric data and cryptocurrency. But in Indonesia, a nation of 270 million people with a booming tech sector and strict data laws, the project has become a case study in how not to enter an emerging market.

The Vision: Universal Identity, Local Blind Spots

Worldcoin’s premise is bold: use AI-powered “Orbs” to scan irises, creating a decentralized identity system that grants users access to cryptocurrency and financial services. Its pitch to the developing world? A universal ID to bypass bureaucratic red tape and banking deserts.

Launched in 2020, the project grew rapidly, amassing over 50 million users worldwide by offering free crypto tokens. But its Silicon Valley playbook—move fast, disrupt norms, apologize later—clashed with Indonesia’s complex regulatory landscape and cultural sensitivities.

The Hype: Tech Leaps and Dubious Triumphs

For all its flaws, Worldcoin’s technology is impressive. The Orb, a spherical device resembling a prop from Blade Runner , can map an iris in seconds, linking it to a blockchain wallet. Early successes followed: partnerships with NGOs, pilot projects in Kenya, and a $4 billion valuation.

Yet these wins masked deeper issues. In Indonesia, the company’s strategy relied on bribing users with crypto—a tactic that felt exploitative in regions where $20 could buy a week’s groceries. Meanwhile, the Orb’s data storage practices—shipping biometric scans to offshore servers—ignored Indonesia’s strict data sovereignty laws, which require local data to remain within the country’s borders.

The Backlash: When “Disruption” Feels Like Invasion

Indonesians didn’t just resist Worldcoin—they mocked it. Memes flooded social media, comparing the Orb to “Big Brother’s new toy” and a “Black Mirror audition.” Critics accused the company of digital colonialism: a foreign firm harvesting data from vulnerable communities under the guise of inclusion.

The government responded swiftly. In late 2023, Indonesia’s central bank warned that Worldcoin’s token violated currency laws, while data regulators accused the firm of illegally collecting biometric data. By early 2024, the National Cyber and Encryption Agency (BSSN) declared Worldcoin’s operations a national security risk.

“This isn’t just about privacy,” said Ismail Fahmi, founder of Indonesia’s Digital Freedom Watch. “It’s about autonomy. No country wants its citizens’ biometric data stored in servers controlled by a foreign startup.”

The Clash: Trust, Culture, and the Gotong Royong Test

Indonesia’s tech success stories—Gojek, Bukalapak, Traveloka—share a common thread: they built trust by embedding themselves in local ecosystems. Gojek, for instance, partnered with motorcycle drivers to create jobs; Bukalapak prioritized empowering small merchants and rural sellers through cash-on-delivery options, accommodating unbanked users.

Worldcoin did the opposite. It bypassed local partners, dismissed cultural nuances, and treated regulations as hurdles to jump rather than rules to respect. The concept of gotong royong —mutual aid and community collaboration—was absent from its playbook.

“Indonesians understand that technology should serve society, not the other way around,” said Rizki Surya, a tech ethicist at Universitas Indonesia. “Worldcoin came in like a tourist, not a citizen.”

The Path Forward: Four Steps to Redemption

Worldcoin’s story in Indonesia isn’t over, but redemption requires a radical shift. Here’s how the company could start:

1. Partner, Don’t Patronize: Collaborate with local champions like Gojek or Bukalapak, which already have trust networks. Integrate Orb tech into existing apps rather than deploying standalone devices. Bukalapak’s grassroots approach to empowering small businesses could serve as a model for Worldcoin’s outreach to underserved communities.

2. Localize Control: Store biometric data on Indonesian servers, governed by Indonesian law. Let users decide how their data is used—no more stealthy exports.

3. Respect Cultural Nuance: Pilot projects in regions where the benefits are clear, like disaster relief or rural banking. Frame the Orb as a tool for empowerment, not surveillance.

4. Offer Real Value: Replace crypto handouts with tangible services—microloans, insurance, or subsidies for small businesses. Indonesians don’t need digital coins; they need solutions.

The Bigger Picture: Silicon Valley’s Hubris Meets Global Reality

Worldcoin’s struggles in Indonesia mirror a broader tension: the clash between Silicon Valley’s borderless tech utopianism and nations asserting control over their digital futures. From India’s data laws to Brazil’s tax on foreign tech giants, governments are rejecting the idea that innovation must come at the cost of sovereignty.

For startups, Indonesia’s message is clear: scale without trust is an illusion. The Orb may be a marvel of AI engineering, but in a country where even Uber had to cede control to Gojek, technology alone isn’t enough.

“The future isn’t just about code,” said Surya. “It’s about context.”

Conclusion: The Orb’s Second Chance?

Worldcoin’s fate in Indonesia hinges on humility. Will it listen to a nation that has already taught Uber, Facebook, and Elon Musk lessons in adaptation? Or will it join the graveyard of Western firms that mistook growth for acceptance?

The Orb still glints with potential. But in a land where innovation thrives on collaboration, its next scan must measure not just irises—but the pulse of the people it hopes to serve.