Indonesia is one of Southeast Asia’s economic powerhouses.
Not only serving as the biggest market with the most prominent investments, Indonesia is also a contributor to half of Southeast Asia’s digital economy by 2025. At the moment, we have the largest number of startups and unicorns, successfully producing two decacorns and more within the coming years.
The Ministry of State Owned Enterprises and the SOE ecosystem, which drives a third of the country's economic power, joined forces and synergised to build State-Owned Corporate Venture Capital (CVC) as an incubator, accelerator, and investor for Indonesia's startup ecosystem. With the synergy of CVC SOEs, the Merah Putih Fund was created to focus on soonicorns - prospective unicorns from Indonesia.
The management fund comes from BUMN VC worth
US$ 300 million or equivalent to 4,3 trillion rupiah
There are 5 well-known BUMN Corporate Venture Capital, namely Mandiri Capital, MDI Ventures, TMI, BRI Ventures, BNI Ventures.
The Merah Putih Fund focuses on accelerating the growth of Indonesia's digital economy, encouraging startups that have the potential to become soonicorns to grow and contribute to Indonesia.
Moving forward, objectives will expand to raising funds from other SOEs, the private sector, and the Indonesian Sovereign Wealth Fund.
In addition to capital investment, the Merah Putih Fund will integrate the businesses of its soonicorn investees into the SOE business ecosystem.
Merah Putih Fund will give birth to new superheroes who are creative, empowered, and successful in the future. 100% Indonesian - 100% for Indonesia.
Investment Strategy & Criteria
The Founders must be an Indonesian and domicile in Indonesia
The Company must have clear exit in Indonesia market
Pre-money valuation
200-350Mn usd
Ticket Size
20-25Mn
Currently, Indonesia has 9 out of 38 unicorns in Southeast Asia. The number of unicorns has gone up 200% since 2017.
The country is currently fostering two Decacorns (startups with a valuation above US$10 billion) and a number of Unicorns (startups with a valuation above US$1 billion) whose numbers continue to grow. Unfortunately, the share ownership of domestic investors is still relatively small.
SOEs have invested in unicorns and a number of “soon to be Unicorns” (Soon to be Unicorns) through BUMN Corporate Venture Capital, namely: Mandiri Capital Indonesia (Bank Mandiri), MDI Ventures (Telkom Group), TMI (Telkomsel), BRI Ventures (Bank Mandiri). BRI), BNI Ventures (BNI Bank).
However, more funds are still needed, especially to foster the growth of potential unicorns. Local investors' shareholdings are relatively small in decacorns and unicorns, which is Indonesia's biggest challenge.
The next challenge is to raise more funds, especially to support the growth of soonicorns who have the potential to become Indonesian unicorns.