Danamon And MUFG Emphasized Commitment To Support Indonesia's Startup Growth Through Garuda Fund MUIP

Jin Yoshida, Global Alliance Strategy Director, PT Bank Danamon Indonesia Tbk. (Photo: Special)

JAKARTA - PT Bank Danamon Indonesia Tbk (Danamon) together with its parent company MUFG and its group members, including Adira Finance, Home Credit Indonesia, and Zurich Asuransi Indonesia, reiterated their commitment to supporting startup growth in Indonesia through strategic investment and collaboration.

As part of one trusted financial group, Danamon and MUFG realize the importance of startup roles in driving Indonesia's digital economy, especially because Indonesia ranks sixth in the world in the number of startups, with more than 2,562 startups as of January 2024. According to Startup Ranking, Indonesia is the country with the highest number of startups in ASEAN, signaling enormous potential for the development of the startup ecosystem in the country.

In supporting the growth of this startup, Danamon operates as a bank that has a local and global reach with holistic financial solutions that can be adjusted to customer needs, along with members of its corporate group, bringing various initiatives, including the provision of holistic financial products and services, investments, and participation in various events involving startups in Indonesia. Danamon and members of the company group are trying to provide innovative financial solutions for startup players to develop their business more effectively.

One of the main initiatives carried out by Danamon is through MUFG Innovation Garuda No. 1 Limited Investment Partnership (MUIP Garuda Fund), an investment fund of 100 million US dollars in collaboration with MUFG and MUIP. This fund aims to support startup growth in Indonesia, especially those engaged in the digital and fintech sectors.

This investment was focused on the startup in the Series A and above stages, with an average investment of 5 million US dollars per startup. The strategic goal of the Garuda Fund MUIP is to encourage startup growth and increase business collaboration between Danamon and digital startup players in Indonesia.

Ryusuke Hirota, Director of overseeing Southeast Asia investments, MUIP, explained the importance of Garuda Fund's MUIP role in supporting the startup ecosystem in Indonesia.

"With a total allocation of funds of 100 million US dollars, Garuda Fund MUIP focuses on investment in the Series A startup stage and above. This initiative aims to encourage the growth of startup ecosystems in Indonesia, including through the development of business synergies that strengthen the network, increase digital capabilities, and expand collaboration with fintech players in Indonesia," he said, Tuesday, October 22.

Danamon together with MUFG and MUIP also continue to strive to find startups that have great potential to receive funding from the MUIP Garuda Fund. One of the concrete steps taken is through the implementation of the Danamon Investment Matching Fair on October 22, 2024.

This event invites more than 50 startups that are developing and interested in collaborating with Danamon and Adira Finance. On this occasion, further assessments were carried out to determine which startups deserved funding and collaborative support from the MUIP Garuda Fund.

Jin Yoshida, Global Alliance Strategy Director, PT Bank Danamon Indonesia Tbk, said that Danamon, MUFG, and MUIP continue to strive to support startup growth in Indonesia through funding from the MUIP Garuda Fund.

"We are also actively conducting investment matching as we have done at the Danamon Investment Matching Fair, as part of our commitment to expanding the digital business ecosystem and increasing collaboration in the financial sector. We hope, through the implementation of this investment matching, we can identify opportunities to provide investment funds to startups that are considered to have the potential to grow and be successful," he explained.

To reach more start-ups and introduce Garuda Fund MUIP, Danamon also participated in the Tech in Asia (TIA) Conference 2024 event, one of Southeast Asia's biggest events that brought together more than 3,000 entrepreneurs, investors, and innovators from around the world. Danamon's participation in the event aims to introduce a comprehensive financial solution for startups, as well as open up collaboration opportunities that can help their business grow.

In this Tech in Asia Conference 2024, Danamon together with MUFG, Adira Finance, Home Credit Indonesia, and Zurich, introduced various digital-based services that could support startup businesses. These services include digital payment solutions such as API-based QRIS and Direct Debit, designed to improve operational efficiency, provide efficiency in financial transactions, and improve their digital capabilities. API-based products from Danamon, for example, allow startups to integrate banking systems into their platforms, provide faster and safer payment solutions.

In addition, Adira Finance introduced Adiraku, an application device designed to help apply for motorcycle credit, car credit, and cash loans quickly, safely, and easily. Home Credit Indonesia also introduced the My Home Credit application, which offers financial solutions such as business capital and loans without a low-interest credit card. On the other hand, Zurich introduced LiveWell, an innovative digital health platform that supports the physical, mental, social and financial health of its users.

To get more complete information about digital-based banking services and how they can take advantage of the collaboration opportunities provided by Danamon and his group of companies, startup players can visit Danamon and MUIP booths at Tech in Asia Conference 2024 on October 23 to 24, 2024, or visit the bdi.co.id/garudafund website.