BRI Ventures launches VC fund targeting Indonesian tech startups

INDONESIA's BRI Ventures - a corporate venture capital firm under state-owned bank BRI - on Wednesday launched a locally incorporated, independent venture fund to invest in tech startups.

The fund, named Sembrani Nusantara, is targeting a first close of 300 billion rupiah (S$29.4 million) from third-party investors seeking to back Indonesia's future tech unicorns.

Calling the fund "a significant milestone", the firm said most venture capital vehicles that operated in Indonesia to date had either been incorporated offshore (most often in Singapore), or are corporate funds that invest off the balance sheets of their parent companies.

Sembrani Nusantara is licensed by the Indonesian financial services authority and managed by BRI Ventures.

The fund will invest only in Indonesia-based startups, focusing on those in the education, agro-maritime, retail, transportation and healthcare sectors. 

The firm said its fund would focus on "value over valuation".

"As the tech landscape in Indonesia continues to mature, coinciding with the aftermath of the Covid-19 pandemic, the industry's focus has shifted towards companies that are able to survive in times of crisis," it said.

"At the end of the day, what is important is that startups have good business fundamentals from day one, and are able to create real value in the local economy. Sembrani Nusantara aims to target a specific type of company in this respect, taking a 'hyper-localised' stance."

Added BRI Ventures chief executive Nicko Widjaja: "Until recently, the priority for local startups has been to grow at all costs.

"Now, the name of the game is to simply survive and reach sustainable growth."