VC funding in Indonesia reaches US$567M by May 2018: Authority
VC funding in Indonesia is still dominated by profit-sharing scheme instead of share-ownership
As the year passed through its first half, Indonesian financial services authority (Otoritas Jasa Keuangan, OJK) noted that venture capital (VC) industry has channeled up to IDR8.2 trillion (US$567 million) of funding by May 2018. The figure is a 14.95 per cent increase of the same period last year at IDR7.15 trillion (US$493 million).
Their business portfolio remains dominated by profit-sharing scheme by 78 per cent, followed by share-ownership (16.3 per cent) and conversion of obligation (5.7 per cent).
The Indonesian Venture Capital and Startup Association (Amvesindo) Deputy Secretary General Rimawan Yasin stated that the positive performance was due to improvement in how industry players are running their business. The strong performance is also attributed to business development activities such as expansion.
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Profit-sharing scheme remains dominant; in the future, the association aims to continue on pushing for its members to embrace share-ownership for their businesses.
“It is not easy to change mindsets, as it takes time. So it is very important to provide understanding to industry players,” Yasin told Kontan.
Up until the end of the year, Yasin predicted that VC business will continue to grow by “double digit.” He noted that tax incentives from the government will play a significant role in improving the performance of this business.
Referring back to data from OJK, the performance of VC business in 2017 reached IDR6.78 billion (US$467,000) with profit-sharing becoming the main contributor at 73.16 per cent, followed by share-ownership (17.7 per cent) and conversion of obligation.
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The article Pembiayaan Modal Ventura Tembus Rp8,22 Triliun was written in Bahasa Indonesia by Marsya Nabila for DailySocial. English translation and editing by e27.
Image Credit: Rezal Scharfe on Unsplash
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