AAA Indonesia to raise $940m corporate-backed venture fund

Indonesia to raise $940m corporate-backed venture fund

Indonesian information and communications technology minister Rudiantara aims to secure IDR 12 trillion ($938m) from the country’s conglomerates for a venture capital fund that will invest in local startups, Kompas has reported.

Rudiantara also hopes to encourage corporates to invest in domestic startups rather than focusing on foreign investments. He has secured several pledges, but has not disclosed the identities of the interested parties.

The fund is expected to be launched later this year and will be managed by a private venture capital firm once it has passed the government’s selection process.

Large Indonesia-based companies currently overseeing corporate venturing activities include conglomerate Sinar Mas, which invests through its Sinar Mas Digital Ventures unit, and telecommunications company IndoSat, which formed the $50m SB ISAT fund with Japan-based SoftBank in May 2014.

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