Indonesian VC Industry Sees IDR 27.35 Trillion Growth; Amvesindo Proposes Boost Initiatives
The Association of Indonesian Venture Capital and Startups (Amvesindo) has proposed initiatives to boost the VC industry in Indonesia. As of June 2023, Indonesian VC companies have jointly accrued IDR 27.35 trillion (USD 1.79 billion) worth of assets under management (AUM), marking a 5.43% year-to-date increase. Amvesindo, comprising 85 members, serves as a platform for dialogue and advocacy for VC companies' interests.
Amvesindo, established in 2018, has set up the Amvesindo Institute to enhance industry competence through competency enhancements and certifications. To standardize regulations, the association has proposed separating VC companies from financing companies and distinguishing between financing-focused and equity participation-focused VC companies. Eddie Danusaputro, Amvesindo's chairman, attributes this growth to the consolidation of both conventional and Sharia-compliant VC companies in Indonesia.
Amvesindo also seeks to incentivize investors by strengthening regulations linked to joint investment contracts (JIC) and streamlining licensing processes. The association recommends encouraging equity participation among regional VC companies to increase equity-based financing products.
With IDR 27.35 trillion (USD 1.79 billion) in AUM, Indonesian VC companies have shown significant growth. Amvesindo's initiatives aim to further enhance the VC industry's contributions, with a focus on equity participation and standardized regulations. The association continues to serve as a vital platform for dialogue and advocacy among its 85 members.
