The government of Indonesia intends to launch a new fund next month in collaboration with state-owned corporations to invest in domestic startups DealStreetAsia reported yesterday.
Merah Putih Fund will be established in partnership with telecommunications company Telkom Group and financial services firms Bank Mandiri and Bank BRI. All three already have their own corporate venturing units and are set to be among the initial backers of the vehicle.
The fund will invest in domestic growth-stage companies, supplying between $10m and $50m per deal, Donald Wihardja, chief executive of Telkom Indonesia’s MDI Ventures unit, told DealStreetAsia.
The fund’s first close has already been reached and its capital allocation stands at a ‘few hundred million US dollars,’ though a final target for the close remains unclear.
Indonesia’s state-owned companies minister, Erick Thohir, said in a public statement recipients of funding will have to be Indonesian and operating in the country, with plans to eventually go public in Indonesia, as opposed to nearby stock exchanges like Singapore.
