The Indonesia VC trends in 2024 speak to a constantly changing market, expanding rapidly and navigating complex global economic challenges. According to Statista Research, the venture capital raised this year will total USD 0.82 billion, with early-stage startup funding leading the way with USD 0.41 billion.
In global comparison, the United States (US) will generate the highest amount, with USD 136.6 billion.
Here are the top growing trends in proptech and its impact on the property market in Indonesia
Here are some highlights of the funding scene in Indonesia from the past year:
Indonesian P2P lender Amartha acquires Bosowa Group’s leasing company
Peer-to-peer (P2P) lending startup Amartha recently acquired a 100% stake in leasing company PT Bosowa Multi Finance, part of the local conglomerate Bosowa Group. DealStreetAsia said Amartha’s holding company, PT Amartha Nusantara Raya (ANR), handled the takeover.
Andi Taufan Garuda Putra, the founder and CEO of Amartha, said the acquisition of PT Bosowa Multi Finance was part of the company’s strategy for expanding its business coverage, maintaining robust customer service, and broadening its product and license portfolio.
Indonesia says Apple’s $100m investment proposal inadequate
After the Indonesian government decided to ban smartphone giant Apple Inc. for failing to meet local investment regulations, rumours abound that the company is planning a USD 1 billion investment. Reuters reports that Investment Minister Rosan Roeslani told lawmakers the tech company had made a commitment—yet unconfirmed—that it would increase its offer ten times from the previously rejected USD 100 million. The country requires phone companies to make their devices using 40% locally-made parts, but Apple and Google Pixel did not meet this requirement, hence the ban.
The government said in November that Apple’s USD 100 million offer to build an accessory and component plant was inadequate. Industry Minister Agus Gumiwang Kartasasmita dismissed the proposal for a lack of fairness, citing the higher amounts the company has spent in Vietnam and Thailand. Furthermore, Apple owes an additional USD 10 million investment due in 2023.
If the deal goes through, Apple will boost its supply chain, establish itself in the local market, and increase sales.
MR DIY’s Indonesian unit plans to raise $296m from local IPO
Malaysian home improvement company MR DIY plans to go public with a USD 296.45 million (4.7 trillion rupiah) initial public offering (IPO). The company will do so through its subsidiary PT Daya Intiguna Yasa (DIY) Tbk, in line with a previous announcement to raise USD 300 million this year or early 2025 by selling its Thai unit.
According to the company’s prospectus filed with the Indonesia Stock Exchange (IDX) on Monday, DIY intends to offer the public 10% of its shares. Malaysian investment company Azara Alpina will give 9% of the shares, while the remaining 1% will be newly issued shares.
Tencent sells 3% stake in Indonesia’s MD Entertainment for $19m
DealStreetAsia reported that China’s Tencent has divested its stake in Indonesia’s MD Entertainment by selling a 3% stake comprising 251.77 million shares for USD 19 million (302 billion rupiah) through its subsidiary Image Frame Investment (HK). Tencent now holds an 11.5% stake.
The company plans to strengthen its presence in traditional TV broadcasting across Indonesia, distribute movie content, and explore partnerships with big Hollywood production houses and other countries.
Indonesia’s oldest noodle chain Bakmi GM set to explore strategic sale
PT Griya MieSejati, the parent company for Indonesia’s oldest noodle restaurant chain Bakmi GM, is rumoured by DealStreetAsia to be exploring a strategic sale of a sizeable amount of shares worth about USD 131.8 million deal (2.1 trillion rupiah).
Bakmi GM has over 50 years of experience in the restaurant industry and serves 30,000 customers a day.
Outlook for VC landscape in Indonesia
Statista notes that Indonesia’s growing venture capital market is due to its budding startup ecosystem, the ability to attract global investment, and a tech-savvy population. Multiple sectors like financial technology (fintech) and eCommerce are emerging and challenging the citizens to innovate technologies, products, and services that will benefit the people. The increased internet and smartphone usage is also making it easier to access digital services, thereby creating the need for investor funding to power the online platforms.
The Indonesia VC trends above show the ever-changing investor behaviour, with firms aggressively pursuing strategic deals, negotiating valuable exits, and divesting stakes to seek new and potentially profitable partnerships. Local and foreign VC companies have greater competition among them, meaning there is more liquidity and support for innovative tech startups, ensuring the economy continues developing. There are also opportunities in other high-potential sectors like Greentech and sustainability to protect the environment.
Finally, the funding scene in Indonesia can improve if the government streamlines the regulatory requirements and creates a policy framework for boosting the sector. They can enhance the venture capital structure by managing investment objectives like desired returns and exit timelines.