BCA to Allocates Rp400 Million in a New Managed Fund Central Capital Ventura

PT Bank Central Asia Tbk (IDX: BBCA) is to allocate IDR 400 billion to Central Capital Venture (CCV) to support investment into the startup ecosystem. BCA's President Director Jahja Setiaatmadja said that CCV has invested in 26 startups.

In a press conference on BCA's 2021 performance, Jahja said that the funds will be used to add more good quality startup portfolios, purposely to generate more profits later.

"We provide CCV the authority to determine which fields for its focus," Jahja said as quoted from Katadata.

On the general note, CCV was formed as BCA's investment arm to support the development of digital innovation within the company. CCV has a mission to create collaboration between BCA and portfolio, especially in terms of embedded finance.

Since the establishment of CCV in 2017, BCA has invested around IDR 200 billion focusing on the fintech vertical. Some of CCV's portfolios include Akseleran, Qoala, and Oy!.

Based on the performance report in 2020, CCV has disbursed around Rp157 billion for investment, an increase of 20% from Rp119.3 billion in the previous year. CCV also secured an operational profit of IDR 1.71 billion from a loss of IDR 1.7 billion in 2019.

In addition to CCV, BCA established a new digital bank, BCA Digital, which focuses on being a tech incubator and expanding the ecosystem under the parent company. BCA Digital was officially established in mid-2021 by launching the "blu" mobile banking application.

CVC in 2021

Based on our records, several corporate venture capital (CVC) in Indonesia are still actively investing in startups throughout 2021. Last year, PT Bank BTPN Tbk (IDX: BTPN) and PT Bank BTPN Syariah Tbk (IDX: BTPS) formed a new CVC named BTPNS Ventura.

The thing is, we oobserve that several CVCs started to offer different initiatives apart from new managed funds. For example, MDI Ventures introduced the eMerge platform to connect a network of angel investors and startups in Indonesia.

There is also a collaboration between MDI Ventures and cryptocurrency exchange platform Binance to form a consortium through a joint venture. This collaboration is carried out to develop a digital asset exchange platform in Indonesia.

Corporate Venture Capital (CVC) in Indonesia / Source: DS Research

Furthermore, we have BRI Ventures that started to expand its investment vertical by introducing the Tokocrypto Sembrani Blockchain Accelerator (TSBA) with Tokocrypto. The goal is to empower startup projects with blockchain technology and tokenization in Indonesia.

Moreover, the Government launched the Merah Putih Fund (MPF) last year as an effort to encourage the acceleration of innovation, digital potential, and startups in Indonesia. The government involved the five SOEs including Telkom, Telkomsel, Mandiri, BRI, and BNI to manage the MPF with a Rp4.3 trillion funding.

–Original article is in Indonesian, translated by Kristin Siagian