Malaysian investment firm Penjana Kapital signed a memorandum of cooperation with Indonesia-focused private investment firms Indies Capital Partners and AC Ventures on Monday. The partnership aims to establish a framework for the three companies to explore co-investment opportunities in Malaysia and Indonesia through existing and soon-to-launch funds.
The signing ceremony was witnessed by Malaysian Prime Minister Anwar Ibrahim and Minister of International Trade and Industry Senator Abdul Aziz during the prime minister’s two-day working visit to Jakarta.
The partnership strengthens a commitment to facilitate cross-border investments and technology transfer in sectors such as data centres, education, hospitality, mobility, and waste management involving Indonesian and Malaysian startups. Moreover, it will help Penjana Kapital find new investment opportunities from emerging sectors in Indonesia’s digital economy.
Indonesia and Malaysia are close business and trading partners. According to data from the Malaysia External Trade Development Corporation, the total trade value between the two countries rose 43.5% to RM95.1 billion (~US$21.6 billion) in 2021 from 2020. Malaysia’s total exports to Indonesia jumped 32.5% to RM39.22 billion ($6.9 billion), while total imports surged 52.3% to RM55.88 billion ($12.7 billion) in the same period. Both countries have shown commitment to boosting sustainable economic development and growth of the green economy.
“Penjana Kapital, Indies Capital Partners, and AC Ventures are all major players in the investment landscapes of Indonesia and Malaysia. Through cross-border cooperation and investment, our firms have the opportunity to tap into new markets, access new sources of capital and expertise, and drive innovation and growth in both markets,” said Pandu Sjahrir, founding partner at ACV and Managing Partner at Indies, in a statement.
Penjana Kapital was established in 2020 as part of the Malaysian government’s initiative to catalyse the development of innovative startup companies. Meanwhile, Indies Capital Partners is one of the earliest private credit-focused managers in Southeast Asia. The firm currently has more than $800 million in assets under management.
ACV focuses on early-stage tech startups in Indonesia and Southeast Asia, with more than $500 million in assets under management. The firm has backed prominent names such as Xendit, Carsome, Shipper, and Aruna.