PT Danareksa to establish venture capital<\/p>\n
JAKARTA (JP): State-owned PT Danareksa, in cooperation with
\nfour foreign financial and investment companies, plans to
\nestablish a venture capital firm, PT Danareksa-Daiwa\/NIF
\nVentures.<\/p>\n
Danareksa President Glenn Yusuf said the venture firm will
\nprovide capital assistance, in the form of equity participation,
\nto medium-sized firms wanting to go public.<\/p>\n
\"We will help companies which are not yet ready to go public
\nto go public,\" Glen told journalists before signing the
\nmemorandum of understanding with its five foreign partners.<\/p>\n
The foreign partners include Nippon Investment and Finance Co.
\nLtd of Japan, Daiwa Securities Asia Holding B.V. of the
\nNetherlands, Mithras Ltd. of Brunei and Central Investment
\nHolding Co. Ltd. of Taiwan.<\/p>\n
Kazuyuki Hiraki of Nippon Investment, who will be the
\npresident of the venture capital firm, said that the new company
\nwill have paid-up capital of Rp 30 billion (US$12.7 million) and
\nstart operations in November.<\/p>\n
He added that the company will raise some US$50 million from
\noverseas financial sources, including some in Cayman Islands, to
\nfinance its venture projects.<\/p>\n
Edgar E. Sujanto, president of PT Danareksa Finance -- a
\nsubsidiary of Danareksa -- said that the venture will invest its
\nfunds in companies, in the form of capital participation, within
\na three to five-year period.<\/p>\n
\"We will maintain our capital participation in each company
\nfor three to five years before selling it to other parties or the
\npublic when the companies go public,\" Edgar said.<\/p>\n
He explained that the venture's income will come from either
\ndividends of its equity participation in other companies or the
\nvalue differentials of the shares.<\/p>\n
He said Danareksa's entrance into the venture capital business
\nis to help encourage the development of the local venture capital
\nmarket, which he said is still in its initial stages of
\ndevelopment.<\/p>\n
\"We have to encourage the development of more venture capital
\nfirms because they can provide companies with an alternative
\nfinancing source other than bank loans,\" Edgar said.<\/p>\n
He said that besides providing an equity, the new venture
\ncapital will also provide management assistance to companies
\nwhich need it.<\/p>\n
\"Our main objective is to make companies better. So, when they
\nneed help other than equity participation, we will provide it,\"
\nEdgar said.<\/p>\n
PT Danareksa-Daiwa\/NIF Ventures, 30 percent owned by Mithras,
\n25 percent by Danareksa, 20 percent by Nippon Investment, 20
\npercent by Daiwa Securities and 5 percent by Central Investment,
\nis the country's first venture capital involving foreign firms.<\/p>\n
Indonesia currently has some 20 venture capitals, whose
\nestablishment is sponsored by state-owned PT Bahana Artha
\nVentura. The company injected Rp 1 billion as an equity
\nparticipation into each venture capital firm. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-danareksa-to-establish-venture-capital-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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