MDI Ventures, the venture capital arm of Telkom Indonesia, remains optimistic about its financing distribution trends for 2024 despite global and local downturns in the venture capital sector.
What’s New
Amid a global and local decline in venture capital financing, Telkom’s VP of Corporate Communication, Andri Herawan Sasoko, detailed the firm’s ambitious plans for continued growth and investment throughout the year. This comes despite a reported 9.35% contraction in the sector’s funding in Indonesia, dropping to IDR 16.49 trillion in February 2024 from IDR 18.19 trillion the previous year, according to the Financial Services Authority (OJK).
Behind the News
The contraction in venture capital is part of a broader trend affecting the global market. In response, MDI Ventures is prioritizing a cautious approach and enhancing their review processes before investing in startups. This strategy aims to maximize potential profits and synergy value, a lesson drawn from successful partnerships in the past year, which yielded IDR 3.3 trillion from collaborations between startups, TelkomGroup, and other state-owned enterprises.
Why it Matters
MDI’s strategy reflects a significant shift towards sustainable and technologically innovative sectors, with an emphasis on Environmental, Social, and Governance (ESG) principles and Artificial Intelligence (AI). This focus not only aligns with global investment trends but also caters to growing market demands for responsible and advanced technological solutions.
What We Are Thinking
MDI Ventures is adapting to market realities by leveraging both local and global partnerships to foster growth. Their plans to issue up to eight ESG Impact Reports in 2024 highlight a commitment to transparency and accountability. This proactive approach in sectors like edutech, fintech, agritech, logistics, and healthtech could set a precedent for venture capital operations amidst economic uncertainties.
Reference: https://keuangan.kontan.co.id/news/ini-strategi-mdi-genjot-penyaluran-pembiayaan-modal-ventura
