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As of May 2018, VC Investment Exceeds Rp8.22 Trillion

Still dominated by profit sharing scheme rather than equity participation

Marsya Nabila - 23 July 2018

Approaching the mid-year, OJK (Indonesia’s FSA) records the venture capital industry has invested Rp8.22 trillion by May 2018. The number has increased by 14.95% compared to the same period last year with Rp7.15 trillion.

The business portfolio is still dominated by profit sharing scheme with 78%, followed by equity participation with 16.3%, and the rest is the conversion obligation with 5.7%.

Rimawan Yasin, Vice Secretary-General of Indonesia’s Startup and Venture Capital Association (Amyesindo) said the positive performance is a result of the players’ business improvement. A business development also contributes to the good performance, including an intense expansion.

Currently, the profit-sharing scheme is still dominant. Furthermore, the association will keep pushing its members to start redirecting business into equity participation according to its core business.

“It’s not easy to change the mindset, it takes time. As the player’s understanding is important right now,” Yasin said, quoted from Kontan.

By the end of this year, he projected the venture capital business can still increase by two digits. The tax incentive from the government, he added, will take part in improving the business performance.


Original article is in Indonesian, translated by Kristin Siagian

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