Erick Thohir's Remarks: SOEs Have Invested In 157 Startups

Minister of SOEs, Erick Thohir. (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir predicts Indonesia's digital economy has the potential to grow higher than other ASEAN countries in terms of Gross Merchandise Value (GMV). Therefore, Erick does not want Indonesia's great potential to be used by other countries.

Therefore, said Erick, the government established the Red and White Fund for the growth of Indonesia's digital economy. Through the Merah Putih Fund, the government provides funding for startups in Indonesia.

Furthermore, Erick Thohir said that the funding was also a rebuttal to the idea that startups were only invested by foreigners. Erick said that SOEs have at least invested in 157 startups.

"We try to balance this, namely we enter Soonicorn or soon to be Unicorn whose valuation has started to increase and the founder must be Indonesian, the company is in Indonesia and go public here," he said, during the CNBC Indonesia Economic Outlook, Tuesday, March 22.

"State-owned enterprises have invested 157 startups through Telkom, Mandiri Capital, BRI, and others. We will encourage this to be promoted to Merah Putih Fun and when it is Unicorn we ask to enter INA. This is what we see regarding the digital economy," he continued.

The Indonesia Investment Authority (INA) is Indonesia's sovereign wealth fund, said Erick, the institution was the result of the direction of President Joko Widodo (Jokowi) in which SOEs collaborated with the Ministry of Finance to create INA.

Erick said, INA is also an answer to criticism of the state debt to build infrastructure. With INA, said Erick, the government builds infrastructure through investment from foreign countries.

"So far, many parties have been arguing about debt for infrastructure. This is the answer. Now we are building infrastructure with investment and it is entrusted by many countries from the UAE, Europe, the United States, because we see the potential for infrastructure in Indonesia to be built and this investment through equity is no longer with debt," he said.