State-Owned Enterprises Deputy Minister Rosan Roeslani (second from left); from left to right, BNI Ventures CEO Eddi Danusaputro, TMI CEO Mia Melinda, MDI Ventures CEO Donald Wihardja, BRI Ventures CEO Nicko Widjaja, and Mandiri Capital Indonesia CEO Dennis Pratistha during the signing of the Merah Putih Fund participation agreement in Jakarta, Monday (4 /9).

(Left to right) BNI Ventures CEO Eddi Danusaputro, TMI CEO Mia Melinda, MDI Ventures CEO Donald Wihardja, BRI Ventures CEO Nicko Widjaja, and Mandiri Capital Indonesia CEO Dennis Pratistha at the press conference signing the Merah Putih Fund participation agreement in Jakarta, Monday (4/9).

Telkom, through MDI Ventures and Telkomsel Mitra Innovation, is among the five corporate venture capital state-owned companies participating in the Merah Putih Fund, ready to deploy funding with initial managed funds of 300 million US dollars.

Jakarta, 8 September 2023 -  PT Telkom Indonesia (Persero) Tbk (Telkom), through its corporate venture capital entities MDI Ventures and Telkomsel Mitra Innovation (TMI), signed the Merah Putih Fund Participation Agreement in Jakarta on Monday (4/9). This national startup funding collaboration program involves five corporate venture capital state-owned enterprises, raising an initial management fund of 300 million US dollars, focused on growth-stage startups.

The Merah Putih Fund, initiated by the Ministry of State-Owned Enterprises in collaboration with the five corporate venture capital state-owned enterprises —MDI Ventures, Telkomsel Mitra Innovation, Mandiri Capital Indonesia, BRI Ventures, and BNI Ventures—is poised to stimulate growth in the national startup ecosystem amid the ongoing tech winter.

"The Merah Putih Fund, based on the shared enthusiasm of the five corporate venture capital state-owned enterprises, aims to foster potential startups within Indonesia dynamic industrial landscape, propelling them towards unicorn status by providing funding, access, and facilitation," Fajrin Rasyid, Telkom Digital Business Director said.

TelkomGroup shares the vision of the Merah Putih Fund (MPF) to advance Indonesia's digital economy growth by bolstering Telkom's digital ventures operated through MDI Ventures and TMI.

MDI Ventures CEO, Donald Wihardja said that MDI participation in the Merah Putih Fund underscores its strategic role as a bridge between startups and corporations. "In addition to creating strong synergies, all investment funds managed by MDI, including the Merah Putih Fund, aim to foster mutually beneficial collaborations between startups under MDI's umbrella and TelkomGroup, other state-owned enterprises, and private companies," Donald said.

Fajrin said that the Merah Putih Fund has a pivotal role in stimulating the vibrant growth of Indonesia's digital and technology sectors through strategic funding for tech startups. "The Merah Putih Fund aims to provide an alternative funding source for late-stage national startups focused on business operations in Indonesia. This aligns with Telkom Indonesia's commitment to building a digital ecosystem by offering alternative funding opportunities for startups at the national level, thereby solidifying Indonesia's position as a digital hub in Southeast Asia," Fajrin said.

The signing of the Merah Putih Fund 2023 participation agreement signifies that the Merah Putih Fund is nearing its goal of providing substantial investment value to sustainably advance the growth of national startups, in collaboration with all corporate venture capitals under state-owned enterprises.

This collaborative effort sets the stage for the Merah Putih Fund to initiate investment activities that strengthen the funding ecosystem's next phase. As this funding progresses, the expectation is for investors and additional state-owned enterprises to join during subsequent rounds, paving the way for private sector participation.

The Merah Putih Fund obtained a business license from the financial services authority on 18 July 2022, and has received full support from the Ministry of State-Owned Enterprises and the Government of the Republic of Indonesia. The Merah Putih Fund aims to serve as a platform to accelerate local startups with unicorn potential through business and capital collaborations, fostering potential synergies for digital solutions across various sectors.

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