Indonesian startups boom has just started. The country’s new-born sector is predicted to receive Rp200 trillion ($14.6 billion) of investments starting this year, as the government is pushing a tax amnesty bill which it says could bring Rp1,000 trillion ($73.2 billion) worth of evaded tax and assets back to Indonesia.
Indonesian association of venture capitals and startups (AMVESINDO) said the money is likely to be invested in tech-based firms. One of the reasons is because conventional sectors are still recovering from the slowdown that hit global economy last year. Commodities, oil and gas, and property, for example, are suddenly less attractive now.
“OJK, the government, the Indonesian chamber of commerce (KADIN), everyone is preparing to welcome these hot funds. We know that the tax amnesty is targeted to be implemented in July,”Teddy Lee, Head of fintech department at AMVESINDO told DEALSTREETASIA.
The tax amnesty bill is currently being discussed at the House of Representatives. The government had said that discussion with the House was expected to be completed by mid-June. It had missed the initial deadline of May 31.
Indonesian Finance Minister Bambang Brodjonegoro claimed his ministry is ready to run the tax amnesty program. He has administered several preparations, including a tax amnesty trial simulation system.
AMVESINDO was established recently (mid-May), in an effort to bring together industry players to map out plans and strategies for the future. The association comprises of 20 venture capitals (VCs) and about 40 startups.
While tech-based VCs include Alpha JWC Ventures, Convergence Ventures,CyberAgent Ventures, East Ventures, Fenox Venture Capital, Ideosource, Kejora Ventures, MDI Ventures, Skystar Capital,SMDV, Sovereign’s Capital, and Venturra.
Jefri Sirait, the president director of Astra Mitra Ventura was elected as chairman. His three deputies are Punjul Prabowo (Celebes Artha Ventura), Donald Wihardja (Convergence Ventures), and Teguh Basuki Ariwibowo (Pinjam).