Erick Thohir to Prepare Funding for Local Startups

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Laila Afifa

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  • SOE Minister Erick Thohir.

    SOE Minister Erick Thohir.

    TEMPO.CO, Jakarta - State-owned Enterprises (SOEs) Minister Erick Thohir is preparing funding for local startups and unicorns in three SOEs, namely Telkom, Bank Mandiri, and BRI ventures.

    "We're preparing the funding in Telkom, Mandiri, and BRI ventures. Why? Because most Indonesian startups and unicorns are owned by foreign [investors]," he said in a scientific speech held virtually in Sriwijaya University, Palembang, South Sumatra on Saturday, October 23, which was monitored in Jakarta.

    According to Erick, it is not the fault of Indonesian youth generation that the local startups and unicorns are owned by foreign parties. But this is because the people were considered absent for them.

    "We, therefore, will push for the funding and it will be launched by Indonesian President Joko Widodo in the second week of December," said the SOEs minister, who also mentioned three requirements for the funding.

    First, the creators and the owners must be Indonesian. Then, the companies must run the businesses in Indonesia. Lastly, they must go public also in Indonesia, instead of abroad.

    Erick said he wants to push for the universities to work together with the SOEs, instead of being rivals to each other. "I'm pushing through the universities. We at the SOEs Ministry have agreed with the SOEs that the R&D must return to the universities. We (SOEs) only commecializing and coorporating, don't let SOEs become rivals to the universities."

    "Here we hope for the balanced digital disruption and make sure that we're ready for the change. The digitalization itself is exteremely rapid," he said.

    The minister previously pushed for the younger generations to have big companies that are hoped to become new unicorns. According to Erick Thohir, Indonesia has the potential with five unicorns, which could be added to 25 within the next few years.

    The condition will push the companies to grow bigger, be able to open job opportunities massively, and push the country's economy to ensure that Indonesia will be protected with the digitalization. Therefore, Indonesia will not only become the market but there will be many local entrepreneurs that stand tall. All of it will need the support from all parties.

    Read: Pos Indonesia's Assets can Become E-commerce Distribution Centers: Erick Thohir

    ANTARA