Traditional venture capital funds are slowing in Indonesia's technology sector, despite a digital boom. A new form of investment is developing as major companies begin to dig into emerging technology, creating a wave of so-called corporate venture capital funds. But these funds will need patience and a change of strategic direction if they are to outperform the independents.
The new wave includes some very big players. In the latest development, Bank Rakyat Indonesia, the country's largest lender, acquired Bahana Artha Ventura in November as a vehicle for corporate VC purposes. Bank Central Asia, another large Indonesian lender, launched a corporate VC initiative called Central Capital Ventura with $15 million in January 2017.