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BNI sets up venture capital arm to tap into tech sector
BNI Modal Ventura was set up with an initial capital injection of Rp 500 billion (US$34.09 million).
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The logo of Bank Negara Indonesia (BNI) adorns BNI Tower in Central Jakarta, as seen in this undated photo. (Courtesy of BNI)
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ank Negara Indonesia (BNI) has established a venture capital (VC) subsidiary to tap into Indonesia’s blossoming tech start-up industry.
The state-owned lender received approval from the Financial Services Authority (OJK) on April 25 to establish PT BNI Modal Ventura and injected Rp 500 billion (US$34.09 million) into its new subsidiary on May 12, according to a filing with the Indonesia Stock Exchange (IDX) dated May 17.
BNI Modal Ventura would “support the company's digital transformation”, BNI said in a statement.
The bank is using digital platforms to expand its market reach among micro, small and medium enterprises (MSMEs) in the country while it develops mobile banking platforms, banking agent platforms and partnerships with peer-to-peer (P2P) lenders as part of its digital strategy.
The latest move makes BNI the last among Indonesia’s Big Four banks to set up a VC arm. State-owned Bank Mandiri has Mandiri Capital, state-owned BRI has BRI Ventures and privately owned BCA has Central Capital Ventura.
These venture capital arms were established to help the banks tap into the country’s digital economy, which is projected to grow 20 percent to $146 billion by 2025, according to the e-Conomy SEA 2021 Report by Google, Temasek and Bain & Company.
Many Indonesian companies have set up VC arms to complement their digital transformation strategies, typically by investing in technology start-ups operating in the parent company’s industry or related industries.
