Bahana Artha helps set up 20 venture capitals

JAKARTA (JP): State-owned venture capital firm PT Bahana Artha Ventura has set up 20 smaller venture capital firms in most major provinces in cooperation with local businesspeople since 1994.

The company's president, Hafiz Arif, said yesterday Bahana Artha and its partners had injected Rp 85.9 billion (US$36.25 million) equity into the 20 venture capital companies as of January this year.

He said Bahana Artha provided about Rp 19.70 billion of the equity while the other Rp 66.2 billion came from businesspeople and institutions.

"We hope we will open some more venture capital firms in Central and Southeast Sulawesi and in Central Kalimantan," he said.

Bahana Artha is the main sponsor developing venture capital firms in Indonesia.

Several issues about the development of venture capital firms will be examined at an exhibition and conference in Jakarta from March 9 to March 12.

President Soeharto will open the conference.

The 20 venture capital companies are in Java, Bali, West Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Maluku and Irian Jaya.

The number of shareholders in the 20 venture capitals was 707 as of January, comprising 335 businessmen, 330 companies, six cooperatives and 16 foundations.

The participation of provincial businessmen was encouraging because their support was needed to help financially weak companies, Hafiz said.

He said about 600 small and medium companies had received Rp 27.9 billion in financial assistance from the 20 venture capital firms.

Of this Rp 4.9 billion went to 106 agricultural businesses, Rp 5.3 billion to 159 home industries, Rp 4.9 billion to 87 industrial businesses, Rp 3.7 billion to 101 traders, and Rp 8.9 billion to 147 consumer services.

Each of the companies received about Rp 50 million.

The companies employ 139,159 people.

"Each venture capital company provides employment opportunities for over 230 people," he said.

Bahana Artha Venture was established in 1993 by PT Bahana PUI, a financial firm owned by the Ministry of Finance and the central bank, Bank Indonesia, to provide financial support for small to medium companies. (02)