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In focus
- As Indonesia reshapes its SOEs, state VCs face an uncertain future
- The foreign VCs still betting on Southeast Asia
- Anthropic walks away from US$6 billion Decart deal
Hello reader,
Recently, former BRI Ventures CEO Nicko Widjaja lost his appeal against his corruption conviction. The ruling is part of the TaniHub case, which centers on investments in the failed agritech startup by Indonesia’s state-owned VCs.
Questions remain over whether failed investments by these VCs can be considered state losses. This has also put their other investments at risk of coming under scrutiny.
Since the TaniHub case emerged, state-owned VC firms have not made any new investments in tech startups. One player, Mandiri Capital Indonesia, has shifted its focus beyond tech by investing in consumer brands.
In today’s Top Story, I look at the current and future prospects of Indonesia’s state-backed VCs amid legal risks and the ongoing restructuring of state-owned enterprises by Danantara.
Over 100 startups in Indonesia have received funding from state-owned VCs. Their inactivity could further shrink the country’s funding pool, especially with MDI Ventures reportedly being put up for sale.
At the same time, foreign investors are hesitant to invest in Indonesia amid the current conditions. This is also part of a broader slowdown in foreign investment pouring into Southeast Asia.
According to data we’ve collected, the number of foreign investors deploying capital in the region has fallen 29% over the past 12 months. Still, while some players are pulling back, others are still making bets on the region.
Check out the full figures and insights in today’s visual story.
Jofie Yordan, journalist
Top Story
From big tech to cakes: Indonesia’s state VCs retreat to safety
Image credit: Ulla
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