President Joko Widodo of Indonesia, often known as Jokowi, has announced the formation of the Merah Putih Fund, which will target soon-to-be unicorns (or soonicorns) who meet certain requirements.
Startups must be formed by Indonesian citizens, operate in the homeland, have ambitions to go public domestically, pay taxes, and have a proven track record of financing with a valuation of more than $200 million, according to his statement.
State-owned enterprises (SOEs) are backing Merah Putih Fund, which is expected to generate roughly $300 million (IDR 4.26 trillion) in H1 2022. Mandiri Capital, BRI Ventures, MDI Ventures, and Telkom Mitra Inovasi are among the company’s early investors.
“Without funding, they [soonicorns] could lose that potential,” said SOE Minister Erick Thohir at the “Digital Generation Acceleration” event. He is one of the initiators of the fund.
Other national business sectors were also asked to join the Merah Putih Fund, according to the president.
Jokowi announced during the Merah Putih Fund’s launch that Indonesia now boasts 2,319 businesses, one decacorn (a startup worth more than $10 billion), and seven unicorns (startups over $1 billion).
According to the Indonesian Venture Capital and Startup Association, 52 local firms have successfully raised a total of US $1.9 billion as of September last year (Amvesindo). GudangAda, Kopi Kenangan, SiCepat, Social Bella, Ruangguru, and 20 more are said to be the archipelago’s “soonunicorns.”