OJK: Domestic Ventura Capital Companies Need To Be Strengthened To Be More Competitive

Photo: Doc. Antara

JAKARTA - The Financial Services Authority (OJK) said that the domestic/domestic Ventura Capital Company (PMV) needs to be strengthened so that it can be competitive and develop well.

"For domestic areas, we need to continue to strengthen, of course we need to encourage colleagues in this domestic area, domestic PMVs can continue to be competitive and develop well, especially those in the regions as well," said the Chief Executive of the Supervisory of the Financing Institution, Ventura Capital Company, Micro Financial Institution and Other Financial Services Institutions (PVML) OJK Agusman at the launch of the Roadmap (roadmap) for the Development and Strengthening of Venturan Capital Companies 2024-2028 at the Mulia Hotel, Jakarta, quoted from Antara, Wednesday 24 January.

Therefore, his party designed several strategic programs listed on the roadmap.

The first is strengthening capital, governance, risk management, and Human Resources (HR) through the fulfillment of the minimum equity provisions of IDR 50 billion for Venture Capital Company (VCC) and IDR 25 billion for Venture Debt Company (VDC). Then also improving health level assessment provisions, strengthening risk management and governance functions, establishing Professional Certification Institutions, preparing HR competency standards and certification, to mentoring and capacity building.

Second, strengthening regulation, licensing, and supervision through follow-up to the Financial Sector Development and Strengthening Act (P2SK), PMV clustering based on business activities and adjustment of regulatory and supervision policies. Next is strengthening licensing arrangements for unlicensed PMV, strengthening venture fund arrangements, implementing Risk-Based Supervision, and optimizing Anti-Money Laundering and Prevention of Terrorism Financing (PPT).

The third strategic program is related to strengthening consumer education and literacy through strengthening education regarding venture funds, strengthening literacy regarding venture capital institutions and products, socializing and enforcing compliance with unlicensed PMV.

Fourth, regarding strengthening the PMV ecosystem through structuring and strengthening the role of associations, strengthening coordination with related ministries/agencies, synergy PMV with pension and insurance funds in order to strengthen funding, synergy PMV with credit insurance/guaranteeing in order to strengthen the mitigation of financing risk.

Then also the synergy of PMV with incubators in the context of financing new entrepreneurs, synergy PMV with custodian banks in the context of developing venture funds, strengthening exit strategy through the Initial Public Offering (IPO) mechanism, and strengthening synergies in the context of developing PMV Syariah.

Finally, the development of data infrastructure and information systems through the development and implementation of the Early Warning System and online reporting systems.

"Therefore, the arrangement of capital, then those related to human resource capacity and all kinds of assistance, capacity building for local ones must be strong, so what? They can grow and develop well," he said.

Agusman wants domestic PMV-PMV to be more well known and able to compete more competitively and healthily.

On the other hand, his party also wants to encourage foreign PMVs to participate strongly in the venture capital industry in Indonesia. Of course, foreign PMVs have more experience at the foreign level, and have already hit potential business partners.

In addition, foreign PMV also provides funding for Indonesian startups, similar to foreign investment, which means their presence is good for this country.

He stressed that discussions on taxes and other aspects of foreign PMV will be discussed and studied with venture capital business actors, then coordinated with the relevant authorities if they have handled the issue.

"So, we certainly hope that later our arrangement on this side should not harm us (domestic PMV), because so far they have been present in a good way to support the economy and the world of startups in Indonesia. Therefore, we will continue to develop continuous communication with them and then we will strengthen coordination and collaboration for how future developers in our venture capital as a whole," said Agusman.