BRI reaches first close on Indonesia fund

The vehicle, known as Sembrani Nusantara, was targeting a first close of IDR300 billion when it was launched in June. The final target has not been specified.

As the LP-GP legal structure does not yet exist for Indonesian funds, Sembrani Nusantara operates somewhat like a mutual fund and is licensed by the financial services authority OJK. Most VC funds in Indonesia have historically operated either as entities incorporated offshore or corporate funds that invest off the balance sheet of a parent company. 

The fund's backers are largely Indonesia-based. They include VC firm Celebes Capital, Fazz Financial Group, serial entrepreneur Pandu Sjahrir, fintech platform Investree, and Southeast Asian ride-hailing and local services giant Grab. Separately, Investree - which provides working capital for small businesses through modern credit scoring models - will launch a venture-debt vehicle with BRI Ventures.

Sembrani Nusantara translates roughly as “unicorn archipelago” although a sembrani refers to a different creature of local folklore rather than a unicorn. The goal is to facilitate the development of a new generation of Indonesia-based technology unicorns. However, the fund will prioritize start-ups that are pursuing sustainable growth and real metrics, rather than hype-driven unicorns that are infamous for unrealistic, paper-based valuations.

Investments will focus on micro, small and medium-sized enterprises (MSMEs) across education, agriculture, maritime, retail, transportation, and healthcare. This is a departure for BRI Ventures, which has traditionally focused on financial technology categories.

"The fund shares our vision of building a robust and thriving tech ecosystem in Indonesia. We want to help Indonesia-made tech and Indonesian start-ups to take the spotlight on the world stage, and are committed to supporting this goal through funding, mentorship, and capability-building. We also believe that startups have a key role to play in advancing the digitalization of MSMEs and supporting Indonesia’s economic recovery,” said Neneng Goenadi, Indonesia managing director at Grab.

COVID-19 has impacted venture capital investment across Southeast Asia, with travel restrictions hindering due diligence efforts by VCs. Nick Widjaja, CEO of BRI Ventures, argued that Indonesia-based investors now have the upper hand, not only because they can access start-ups but also because they know the lay of the land.

BRI Ventures claims to have about $250 million in assets under management. The firm was active earlier this year as part of a $17 million round for TaniHub, an online marketplace for farm products. It appointed Widjaja as CEO last year when he stepped down from MDI Ventures, the corporate VC arm of state-controlled telecommunications giant Telkom Indonesia.

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• Topics
• Southeast Asia
• Fundraising
• Venture
• Technology
• Indonesia
• BRI Ventures