AC, Indies sign up to Malaysia government tech drive

Penjana, set up in 2020 to develop Malaysia’s start-up ecosystem, will explore cross-border technology transfer and co-investment opportunities with AC and Indies through existing and soon-to-launch funds.

All three firms will invest under the agreed framework of cooperation. They will target areas such as data centres, education, hospitality, mobility, and waste management where there is a Malaysia-Indonesia connection. Penjana also flagged interest in promoting growth of the green economy.

“Through cross-border cooperation and investment, our firms have the opportunity to tap into new markets, access new sources of capital and expertise, and drive innovation and growth in both markets,” Pandu Sjahrir, a founding partner at AC and a managing partner at Indies, said in a statement.

“By working together, we can also deepen economic ties between Indonesia and Malaysia and promote a more interconnected and prosperous ASEAN region. The key to realising this potential is in fostering a spirit of collaboration and prioritizing the interests of both nations."

It comes at a time when bilateral economic ties appear to be strengthening, with total trade value between Malaysia and Indonesia rising 43.5% to MYR 95.1bn (USD 21.6bn) in 2021 according to government data. Malaysian exports to Indonesia were up 32.5% to MYR 39.22 billion while imports grew 52.3% to MYR 55.88 billion during the year.

Malaysia’s VC space has historically suffered from a sense that the government is an over-pervasive presence, discouraging more activity by homegrown funds and regional investors. The government’s main lever in this space is Mavcap, a wing of the Ministry of Science set up in 2001 that typically launches funds that dwarf those of independent operators in the country.

Penjana describes its main role as futureproofing Malaysia businesses through innovation from privately backed start-ups. Its flagship investment programme, a 1:1 matching fund-of-funds called Dana Penjana Nasional, had raised MYR 995.4m as of last October on a target of MYR 1.2bn. There are eight foreign VC firms in the programme, including AC.

AC, the product of a 2019 merger of Indonesia’s Agaeti Ventures and Convergence Ventures, has about USD 500m in assets under management (AUM) across five funds. The debut fund for the combined entity closed on USD 025m in late 2021. It operates via offices in Jakarta and Singapore.

AC works closely with Singapore-based Indies, a credit-focused manager set up in 2009 that currently has around USD 800m in AUM. In addition to AC, Indies leverages a strategic partnership with US-based Varde Partners to co-invest in private credit opportunities.

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• Topics
• Southeast Asia
• Fundraising
• Venture
• GPs
• Technology
• Fund-of-funds
• Malaysia
• Indonesia
• AC Ventures