Sinar Mas Land’s dual approach to create Indonesia’s Silicon Valley

As Indonesian conglomerates jump on the tech bandwagon, Sinar Mas Group is no exception. Its foray to the digital world is led by property development arm Sinar Mas Land, which is behind one of Indonesia’s often-touted “Silicon Valleys.”

In a recent interview with Tech in Asia, Sinar Mas Land CTO Mulyawan Gani says that digital transformation is one of the firm’s priorities.

Artist’s impression of a BSD City office park / Photo credit: Sinar Mas Land

The company sees technology as a way to meet the needs of its stakeholders. Gani notes that the firm is not just focused on residential and commercial projects but also develops satellite cities, widening the range of stakeholders.

Sinar Mas Land has two projects in the works to achieve its digital goals:

1. Living Lab Ventures (LLV): An investment unit that searches for and supports startups that can be integrated into the company’s ecosystem.
2. Digital Hub: A commercial complex in the Jakarta suburb of BSD City – one of the firm’s developments – aimed at becoming a center for technological innovation.

City-driven solutions

LLV partner Bayu Seto says that the investment arm, which was established in 2022, has three areas of focus:

• Strategic investment: providing capital injections to startups that fit in the Sinar Mas Land ecosystem.
• Incubation: helping startups validate their ideas and pilot their services in the company’s network.
• Venture building: creating and overseeing digital business units based on stakeholder needs.

Although LLV operates under a property giant, it isn’t just interested in proptech startups. It is open to investing in firms that can develop products or services that solve urban issues, no matter what sector they’re in.

“We invest in various sectors from e-mobility, waste management, to financing. It’s not just proptech,” says Seto.

He adds that early-stage startups are LLV’s priority but it is willing to finance mature firms. The investment unit’s portfolio includes names like tech major GoTo Group, e-wallet Dana, and ecommerce enabler Sirclo.

Seto says that as long as a startup has “city-driven solutions” and “can provide added value to Sinar Mas Land,” LLV is open to investing in it.

BSD as a testing ground

6 trillion rupiah for a Digital Hub