Jakarta, CNBC Indonesia – Institution BUMN joint funding, the Merah Putih Fund (MPF) is ready to disburse managed funds of USD 300 million or the equivalent of Rp. 4.47 trillion to a number of local startups.
Chief PMO Merah Putih Fund, Eddi Danusaputro, revealed that for this massive investment plan, MPF is in the process of working with a number of Soonicorns or soon to be unicorn with a valuation of around USD 20 Million.
“The choice of soonicorn is the most appropriate for us, because unicorns would already be expensive. Moreover, based on GCG and risk management, in 1 investment there should be no more than 10% of the managed fund, meaning around USD 20-25 million per investment. In total there are around 6-7 startup in managing this first fund,” explained Eddy to CNBC Indonesia, Tuesday (29/8/2023).
The criteria set by the MPF for channeling this funding are that the founder must be an Indonesian citizen, company operations in Indonesia, must have a plan exit and focus on getting profit.
“There has to be a plan exitit can be MNE, it can be IPO, hopefully it will be done in Indonesia to stimulate the market,” said Eddy.
Eddy also added that the valuation is not too expensive, but not too early either. Eddy said that around USD 50 million is the most appropriate valuation for MPF. As for the sectors targeted by the MPF, Eddy said that he would still be targeting Fintech.
“There will be no fintech surprises, because fintech can be a solution to problems. Apart from that, there is agritech, entering agriculture, animal husbandry, and this can also be a solution for Indonesia. The opportunity is huge. We are also targeting logistics, energy tech, and finally, recktech. which are currently not many but have entered our radar,” Eddy explained.
As for the many startups that have collapsed, Eddy said that apart from macroeconomic problems, there were also business model problems missmanagement.
“Many startups are driven by goods and technology, the CFO is not dominant, the CFO is an important position in startups. I think startups in Indonesia are quite late, the CFO should be able to slow down,” concluded Eddy.
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