Venture capital firm set up in Medan to help local economy
Venture capital firm set up in Medan to help local economy
MEDAN, N. Sumatra (JP): Minister of Finance Mar'ie Muhammad
sees venture capital financing as one of the most effective ways
of enhancing the development of small and medium-scale
enterprises as investors usually bring in equity funds as well as
managerial and marketing skills.
"I therefore greatly welcome the incorporation of PT Sarana
Sumut Ventura as the second venture capital company that is based
in a provincial capital," Mar'ie noted here Friday evening.
Mar'ie was here to witness the incorporation of PT Sarana
Sumut with a paid-up capital of Rp 3.75 billion (US$1.72 million)
by state companies and private businessmen. It is the second
venture capital company based outside Jakarta after PT Sarana
Jabar Ventura in Bandung.
Mar'ie said a local venture capital company is obviously in a
better position to identify small and medium-scale businesses
with high growth potentials in North Sumatra that are qualified
for equity financing.
He hoped that other provinces would have venture capital
companies to help develop small and medium-scale enterprises,
thereby strengthening and broadening the base of the business
sector.
He reaffirmed the important role of small firms in generating
jobs and in promoting a more equitable distribution of business
opportunities.
"The government has taken several measures, including tax
incentives, to encourage the operations of venture capital
companies in the country," Mar'ie said.
He added the government also has allowed state companies to
use part of their profits for venture capital funds.
Operating
There are now 16 venture capital companies operating in
Indonesia but most of them are based in Jakarta. Of the total,
seven are owned by private national businessmen and nine are
joint ventures with foreign companies.
PT Sarana Sumut, which is expected to start up operations
within the next few weeks, is controlled by the North Sumatra
Regional Development Bank and state-owned PT Bahana Artha
Ventura. The other shareholders are local businessmen such as
Sukanto Tanoto, Ade Nasution, Yopie Batubara, Karim Tono Tjandra,
Adi Putra Darmawan Tahir.
"We are optimistic in getting more shareholders to strengthen
our venture capital financing capability," PT Sarana Sumut's
President Yopie Batubara said.
Batubara saw the participation of private investors in the
venture capital company as greatly helpful in seeking investee
companies because they have been well experienced in dealing with
small and medium-scale enterprises.(vin)