diff --git a/.idea/compiler.xml b/.idea/compiler.xml
index 763be33f18cff8..836a569c033401 100644
--- a/.idea/compiler.xml
+++ b/.idea/compiler.xml
@@ -2,6 +2,15 @@
 <project version="4">
   <component name="CompilerConfiguration">
     <bytecodeTargetLevel>
+      <module name="jetbrains-backend-plugin" target="11" />
+      <module name="jetbrains-backend-plugin.gitpod-protocol" target="11" />
+      <module name="jetbrains-backend-plugin.gitpod-protocol.main" target="11" />
+      <module name="jetbrains-backend-plugin.gitpod-protocol.test" target="11" />
+      <module name="jetbrains-backend-plugin.main" target="11" />
+      <module name="jetbrains-backend-plugin.supervisor-api" target="11" />
+      <module name="jetbrains-backend-plugin.supervisor-api.main" target="11" />
+      <module name="jetbrains-backend-plugin.supervisor-api.test" target="11" />
+      <module name="jetbrains-backend-plugin.test" target="11" />
       <module name="jetbrains-gateway-gitpod-plugin" target="11" />
       <module name="jetbrains-gateway-gitpod-plugin.gitpod-protocol" target="11" />
       <module name="jetbrains-gateway-gitpod-plugin.gitpod-protocol.main" target="11" />
diff --git a/components/ide/jetbrains/image/startup.sh b/components/ide/jetbrains/image/startup.sh
index 8da3e52290b6b2..507ae143c5bfb0 100755
--- a/components/ide/jetbrains/image/startup.sh
+++ b/components/ide/jetbrains/image/startup.sh
@@ -20,7 +20,13 @@ if [ "${SUPERVISOR_DEBUG_ENABLE+}" = "true" ]; then
   JAVA_TOOL_OPTIONS="$JAVA_TOOL_OPTIONS -agentlib:jdwp=transport=dt_socket,server=y,suspend=n,address=*:0"
 fi
 
+# Set default config and system directories under /workspace to preserve between restarts
+export IJ_HOST_CONFIG_BASE_DIR=/workspace/.config/JetBrains
+export IJ_HOST_SYSTEM_BASE_DIR=/workspace/.cache/JetBrains
+
+# Enable host status endpoint
 export CWM_HOST_STATUS_OVER_HTTP_TOKEN=gitpod
+
 /ide-desktop/backend/bin/remote-dev-server.sh run "$GITPOD_REPO_ROOT"
 
 echo "Desktop IDE startup script exited"