The total investment from Southeast Asia’s venture capital (VC) has increased this year, reaching the highest value. By August 2018, it has increased 16% if compared to last year’s total funding. Per August, the number has arrived at $3.16 billion (equiv. with 46 trillion Rupiah), whilst last year it reached $2.72 billion.
The report was submitted by the Singapore Venture Capital and Private Equity Association. According to Thomas Lanyi, its Chairman, the business environment (particularly digital) in Southeast Asia is getting more dynamic thanks to those players with high enthusiasm. Southeast Asia is a potential market base with a total population of 640 million.
The number is predicted to keep increasing by the end of 2018, along with the upcoming funding raised by large startups for expansion. Some are operating in Indonesia and contributing for the total funding, such as Grab, GO-JEK, and Traveloka.
In addition, the regional digital economy is projected to keep increasing. Google-Temasek’s research projected that in 2025, the digital economy in Southeast Asia will surpass $200 billion. Previously in 2017, the record shows $50 billion.
The association also highlighted the boundaries issue between venture capital and private equity (companies that provides funding through its investment arms). The thing is, in this area, funding isn’t always steered by venture capital (VC) company. Some of the global tech-companies start to play roles, including Alibaba, Tencent, Google, and Mirosoft.
Indonesia’s position
Previously, in the mid-year of 2017, OJK announces notion of the investment distribution from VC to Indonesia’s startups. Per May 2018, the number has reached 8.22 trillion rupiahs, 14.95% increase from the same period last year. Authority says the positive performance was due to the local business improvement.
Considering the current data, OJK is optimistic to gain two-digit growth by the end of this year. It was due to several reasons, one of those is the government’s tax incentives.
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Original article is in Indonesian, translated by Kristin Siagian
