Chairman of Amvesindo, the Indonesian Venture Capital and Startup Association, Eddi Danusaputro, said in Jakarta on Wednesday (24/1/24,) that the group is aiming to reach venture capital funding of IDR 20-trillion (approx. USD 1.27-billion) in 2024, building on positive growth in disbursements up to November 2023, according to reporting from Jakarta Globe.
As of November 2023, venture capital disbursements in Indonesia amounted to IDR 17.39-trillion. Of this, IDR 16.78-trillion went to conventional businesses, and IDR 610-billion was allocated for Sharia-compliant disbursements.
“In 2023, despite a slight year-on-year decrease, the venture capital disbursement was relatively positive, remaining above IDR 17-trillion. We aim for an even higher amount this year, reaching around IDR 20-trillion or more,” Eddi said.
The drop in venture capital disbursements in 2023 was the result of a cautious stance adopted by numerous businesses, including venture capitalists, attributed to high interest rates, says Jakarta Globe.
Despite 2024 being an election year in Indonesia, Amvesindo remains optimistic about reaching the target, anticipating a smooth election cycle. Eddi added that trends in the US and Europe show interest rates are expected to decline this year.
The upcoming European Central Bank (ECB) meeting on Thursday (25/1/24,) is anticipated to maintain interest rates at their current levels. This aligns with the expectations for the Federal Reserve’s Federal Open Market Committee (FOMC) meeting next week, where investors will be closely monitoring indications regarding the timing of a potential rate cut, says Jakarta Globe, adding that presently, there is approximately a 40-percent likelihood of a rate cut in March, contrasting with nearly 80-percent at the beginning of the month, according to Investing.com‘s Fed Rate Monitor Tool.
According to Jakarta Globe, OJK have officially launched the roadmap for capital venture development for the 2024 to 2028 period. Chairman of the OJK Board of Commissioners Mahendra Siregar explained that the roadmap was launched to further encourage and develop the financial services sector to contribute more to the national economy and the welfare of the people.
Source: Jakarta Globe
Stock photo by Precondo CA on Unsplash
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