Jakarta, CNBC Indonesia – Indonesian unicorns will no longer be controlled by foreign investors. This is because the state-owned venture capital company now has a jointly managed fund called the Merah Putih Fund.
Chairman of the PMO Merah Putih Fund Eddi Danusaputro revealed that Indonesia’s startup ecosystem has indeed been able to produce 12 unicorns and 2 decacorns. Unfortunately, the ownership of the startup’s shares worth billions of US dollars is still controlled by foreigners.
The Merah Putih Fund is an effort by a state-owned venture capital company so that local investors can develop and compete with foreign investors.
“What can be done is treating local investors offsetting foreign investment,” said Eddi at the launch of the Merah Putih Fund, Monday (4/9/2023).
Unlike other managed funds for startups, the Merah Putih Fund has a number of specific requirements. One of them is that the startup receiving the Merah Putih Fund must be native to Indonesia.
A native Indonesian startup means that all the founders are in Indonesia, as well as the business focus and domicile of the company. In fact, companies are encouraged to release their shares on the Indonesian stock exchange.
“There is an exit plan. It is aimed at an IPO in Indonesia,” said Eddi.
He also explained that the Merah Putih Fund does not target certain sectors, but can cover all sectors. However, Eddi emphasized that the targets were not those at the unicorn level.
“Not too expensive unicorn. But [berikan pendanaan] soon-icorns [soon-to-be-unicorn],” he said.
The Merah Putih Fund consists of five Corporate Venture Capital (CVC) from BUMN. Starting from Mandiri Capital Indonesia, MDI Ventures from Telkom Group, BRI Ventures, Telkomsel Innovation Partners (TMI), and BNI Ventures.
Previously, he said the five BUMN CVCs were only running on their own. So now they are assigned to raise funds together.
“Already have 5 VC. But walking alone. Collecting together for investment,” explained Eddi.
All of the CVCs that joined put together an initial managed fund with a value of up to US$300 million. Next, more funds will be collected involving other state-owned CVCs and the private sector.
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