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SOEs Ministry signals appetite to fund local tech start-ups
The ministry wants to increase national ownership of Indonesian tech start-ups, many of whom have been bagging funds from international investors.
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State-Owned Enterprises (SOEs) Minister Erick Thohir gives a speech at Gedung Pancasila at the Foreign Ministry office in Jakarta on June 17, 2020. (Antara/Dhemas Reviyanto)
T
he government wants state-owned enterprises (SOEs) to invest more in Indonesian tech start-ups to boost national ownership of tech firms, which have mostly received funding from international investors.
Top SOEs Ministry officials have said over the past two months that the government wants five SOEs, through their respective venture capital (VC) arms, to lead the way, even hinting at the formation of a national VC holding firm.
The five are Bank Mandiri through Mandiri Capital, Bank Rakyat Indonesia (BRI) through BRI Ventures, telco giant Telkom through MDI Ventures, Telkomsel through Telkom Mitra Inovasi (TMI) and Bank Negara Indonesia (BNI) through a yet-to-be-formed VC arm.
BNI has been planning to establish a VC arm since 2019, but faced delays after the ministry restricted the establishment of new subsidiaries through Ministerial Decree No. 315/2019.
“Foreign investors are investing in these start-ups, why aren’t we? We cannot wait around until these companies are big and profitable. If we are scared, then don’t dream of us owning our local start-ups,” said SOEs Ministry spokesperson Arya Sinulingga, an aide to Minister Erick Thohir, on Oct. 5.
He went on to say that the minister was formulating “a way to consolidate” SOE-backed VC firms, so they could focus on funding more companies.
Read also: Indonesia’s venture capital progress hinges on new rules
