Indonesia expands startups’ access to financing

Indonesia’s Cooperatives and Small and Medium Enterprises Ministry has continued to exert efforts to expand access to financing and investment to the country’s startup companies, Minister Teten Masduki said on Wednesday.

He noted that expanding financing access is essential to assist startup companies in dealing with issues arising during their early days of operations.

Indonesian startups have been relying heavily on financing provided by "angel investors" and venture capitalists to fund their business growth and innovations, he stated.

The minister said that his ministry is aiming to bolster the development of the startup ecosystem through collaboration with domestic and international venture capitals.

Since 2021, Indonesia has been striving to enhance the capacity of Indonesian startups by implementing an incubation programme that involves 20 institutions from universities and regional governments.

The programme, drawing the participation from 351 companies, is meant to assist startups in solidifying their business models, increasing income, and linking with potential partners at the national and international levels, he explained.

The minister highlighted that his country is currently aiming to pave the way for establishing more startups in the sectors of agribusiness, aquaculture, green businesses, and technology.

Masduki urged all financial institutions to take part in facilitating Indonesian startup companies to access the financing schemes they need.

He expressed his belief that Indonesia will be able to transform into a developed country by growing its economy and creating more new entrepreneurs