Indonesian Conglomerates-Backed Tech Fund to Be Launched in 6 Months
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An Indonesian tech venture capital fund backed by the country’s largest conglomerates will be launched within the next six months, Communications Minister Rudiantara said.
“We, Indonesian investors, must immediately enter the tech market,” the minister said on Thursday (05/07).
He said the fund, which would be pooled from Indonesian conglomerates, was supported by his ministry, with its structure being discussed with the Financial Services Authority (OJK).
The size of the fund has not been disclosed.
Rudiantara said he held discussions with local conglomerates on how they should unite and support “series A, B and C” as well as “unicorns,” a term used for startups worth at least $1 billion.
The Sinar Mas Group, one of Indonesia’s largest conglomerates, previously said that it would invest in a pooled venture fund supported by the government.
The country’s startup sector has witnessed a boom as investors are lured by the youthful demographic in the nation of more than 250 million people, who resort to online shopping for everything from tickets to electronic gadgets.
“While two national conglomerates such as Djarum and Astra became investors in a ‘unicorn’ such as Go-Jek, it is not enough,” the minister said.
The country has four “unicorns,” including ride-hailing service Go-Jek, travel site Traveloka and market places Bukalapak and Tokopedia.
Questions & Answers
Q.Which specific Indonesian conglomerates are backing this new tech venture capital fund?
Which specific Indonesian conglomerates are backing this new tech venture capital fund?
The article states the fund will be pooled from Indonesian conglomerates, and mentions the Sinar Mas Group previously expressed intent to invest. Other specific conglomerates are not named as direct backers of this new fund.
Q.What is the primary objective of this new tech fund, according to the minister?
What is the primary objective of this new tech fund, according to the minister?
The minister stated Indonesian investors must immediately enter the tech market. He held discussions with conglomerates on how to unite and support early-stage funding (Series A, B, C) and invest in established 'unicorns'.
Q.What is the total financial size or target amount of investment for this new fund?
What is the total financial size or target amount of investment for this new fund?
The article explicitly states that the size of the fund has not been disclosed. Therefore, the total financial size or target investment amount for this new fund is currently unknown.
Q.Which government body is supporting the launch of this tech fund?
Which government body is supporting the launch of this tech fund?
The Communications Ministry is supporting the fund, with its structure currently being discussed with the Financial Services Authority (OJK). The minister, Rudiantara, is from the Communications Ministry.
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