BRI Ventures, IDX team up to help Indonesian startups pursue local IPOs

BRI Ventures, the corporate venture capital initiative backed by state-owned Bank Rakyat Indonesia, announced a partnership with the Indonesia Stock Exchange (IDX) that aims to help more local startups pursue initial public offerings (IPOs) on the local stock exchange.

Photo credit: BRI Ventures

Under the new tie-up, the two companies co-hosted a virtual conference called Workshop Go Public, which was designed to spread awareness among startups and industry stakeholders about the option of exiting via IPO.

According to a 2019 INSEAD report, only seven out of the 131 startup exits across ASEAN in 2018 were done through IPOs. It also projected that this year will produce similar results, with a majority of startups choosing to exit via acquisitions.

According to the statement, this year’s IPO market for startups pushed itself into a bullish market despite the pandemic’s major economic impact. BRI and IDX also said the growing trend of digitization and adoption of modern tech all point to a positive technology-sector IPO market for years to come.

The half-day event covered topics such as startup sustainability and the benefits of being publicly listed, according to a statement. The program encouraged startups to take the first step toward a financial debut by signing a memorandum of understanding and joining an accelerator program.

BRI Ventures CEO Nicko Widjaja said that the Covid-19 pandemic has shifted the VC community focus from the previous “growth-at-all-costs model” to sustainable growth.

“But we really can’t have a conversation about this without addressing how to build a healthier landscape in which startups can exit. This means a well-defined path to IPO,” the exec added.

BRI earlier this year also launched a tech fund that aims to invest in Indonesia-based companies in the education, agro-maritime, retail, transportation, and healthcare sectors. In its June announcement, the company said it targets to secure US$21.2 million for the Sembrani Nusantara fund’s first close.

In the latest announcement, Widjaja said that the new fund is preparing to make its first investments in two local companies in November.