The startup business in Indonesia is entering a new chapter. Behind the buzz of digitalization and the rise of technology, one sector is starting to gain more attention: venture capital. This financing model is gradually but steadily growing, in line with the increasing number of startups and the demand for early-stage funding. But what exactly is venture capital, why is this business rising in Indonesia, and what kind of opportunities are emerging? Let’s break it down one by one.
The growing threat of a global recession due to the import tariffs imposed by the United States is predicted to potentially pressure the development of the startup industry. Even so, the venture capital business is expected to still have room to grow this year.
What Is Venture Capital?
Venture capital is a form of investment where investors or venture capital firms inject funds into startups in exchange for equity.
This scheme is commonly used to fund companies in the early stages, especially those with high growth potential but no guarantee of stable profits. It comes with high risk, but if it succeeds—the profit is no joke.
In Indonesia, its firms are regulated by the Financial Services Authority (OJK) through POJK Number 35 of 2015. This regulation explains that venture capital firms can take the form of a limited liability company (PT) and must be registered and licensed by the OJK.
Why Is the Venture Capital Business Rising?
In recent years, interest in the startup industry has risen sharply. Indonesia has even ranked among the top 10 countries with the highest number of startups in the world.
According to data from Startup Ranking, as of January 11, 2024, there were 2,562 startups in Indonesia, making it the sixth country with the most startups globally and the number one in Southeast Asia. With a growing digital market and a favorable demographic bonus, Indonesia is considered fertile ground for digital innovation.
However, behind that potential, many startups struggle to access funding. That’s where venture capital plays an important role. Fresh capital from venture investors enables startups to develop products, build teams, and expand without relying on bank loans or bootstrapping.
Meanwhile, the Financial Services Authority (OJK) projects that its financing or equity participation will increase by 3.72 percent year-on-year (yoy) this year, or within the range of 3–4 percent yoy.
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The Chief Executive of the Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) at OJK, Agusman, stated that this projection refers to the Annual Business Plan (RBT) data of Venture Capital Companies for 2025.
“Business development will be focused on the real sector,” said Agusman in Jakarta, Friday, as quoted from Antara.
In February 2025, its financing contracted by 0.93 percent yoy, with financing recorded at IDR 16.34 trillion, down from IDR 16.49 trillion in February 2024.
Venture capital financing has seen a decline in recent months. In October 2024, financing was recorded at IDR 16.32 trillion. It then dropped to IDR 16.09 trillion in November 2024, IDR 15.84 trillion in December 2024, and IDR 15.81 trillion in January 2025.
Meanwhile, the total assets of venture capital firms as of February 2025 reached IDR 27.07 trillion, growing 3.83 percent yoy from IDR 26.07 trillion in February 2024, and 1.8 percent month-to-month (mtm) compared to IDR 26.59 trillion in January 2025.
To develop and strengthen the position of the venture capital industry, OJK has issued Regulation POJK Number 25 of 2023 concerning the Operation of Venture Capital Firms and Sharia Venture Capital Firms (PMV/S).
Big Opportunities Amid Rising Funding Needs
With thousands of new startups each year and a huge demand for funding, the opportunity for venture capital players is wide open. Especially in sectors like agritech, edutech, healthtech, and climate tech, which are increasingly attracting investors due to their strong social impact.
Startups outside of Greater Jakarta (Jabodetabek) are also growing rapidly—from Surabaya, Bandung, Yogyakarta, to Medan. This means that investment opportunities are no longer concentrated in just one area.
Seeing this trend, establishing a venture capital firm has become a promising business opportunity—provided it is done in accordance with regulations and with a solid strategy. The registration process involves setting up a legal business entity (PT), obtaining licenses from OJK, and preparing internal systems for risk evaluation and investment management.
If you’re an investor, financial institution, or entrepreneur looking to enter the startup world through the venture capital route, now is the perfect time. But of course, all legal and administrative processes must be properly handled from the start.
No Need to Stress, Let Bizindo Handle It
A venture capital company, or VC, is an entity that injects funds into startups considered to have high growth potential. Though it may seem like just being an “investor,” the reality is that a VC must be legally established and properly registered—with the right structure, whether as a PT, PT PMA, or investment manager entity.
Dealing with legalities and licenses can be overwhelming, especially if you’re new to the industry. That’s where Bizindo can be the partner you need.
Bizindo has experience helping both local and foreign clients handle all documentation—from establishing PTs for venture capital firms, securing OJK licenses, to setting up tax systems and payroll once you start building a team. Everything can be managed from A to Z, so you can focus on your business strategy without the headache of bureaucracy.
Need help handling the legal process? Want guidance to establish an official venture capital firm in Indonesia? Bizindo’s team is ready to support you from the ground up. Visit www.bizindo.com and talk to our team directly. Let’s build something great, together.
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