Indonesian conglomerates-backed tech fund to be launched in 6 months - minister (updated)

Sinarmas Land

05/07/2018 07:25

* The size of the fund has not been disclosed
    * Financial regulator OJK is discussing the structure

 (Adds quotes, context)
    By Cindy Silviana
    JAKARTA, July 5 (Reuters) - An Indonesian tech venture
capital fund backed by the country's largest conglomerates will
be launched within the next six months, the communications
minister said on Thursday.
    "We, Indonesian investors, must immediately enter the tech
market," Minister of Communications and Information Rudiantara
told Reuters.
    He said the fund, which would be pooled from Indonesian
conglomerates, was supported by his ministry, with its structure
being discussed with the country's financial regulators (OJK).
    The size of the fund has not been disclosed.
    Rudiantara, who prefers using only one name, said he
discussed with local conglomerates about how they should unite
and support "series A, B, and C" as well as "unicorns", a term
used for start-ups worth at least $1 billion.
    Conglomerate Sinar Mas Group had previously told Reuters it
would invest in a pooled venture fund supported by the
government.
    The country's start-up sector has witnessed a boom as
investors are lured by the youthful demographic in the nation of
250 million people, who resort to online shopping for everything
from tickets to electronic gadgets.
    "While two national conglomerates such as Djarum and Astra
became investors in a "unicorn" such as Go-Jek, it is not
enough," he said.
    The country has four "unicorns", including ride-hailing
company Go-Jek, travel site Traveloka, and market places
Bukalapak and Tokopedia. 

 (Reporting by Cindy Silviana; writing by Fanny Potkin, Editing
by Muralikumar Anantharaman and Sherry Jacob-Phillips)
 ((f.potkin@thomsonreuters.com;))