Malaysia’s Penjana Kapital Sdn Bhd (Penjana Kapital), announced Monday it has signed a memorandum of cooperation with Indonesian-focused private investment firms Indies Capital Partners and AC Ventures (ACV), for cross-border investments and technology transfer.
In a statement, the trio said the memorandum establishes a framework for Penjana Kapital, Indies Capital Partners, and AC Ventures to explore co-investment opportunities in Malaysia-Indonesia growth companies through existing and soon-to-launch funds.
It also solidifies a commitment to facilitating cross-border investments and technology transfer in key sectors such as data centers, education, hospitality, mobility, and waste management involving Indonesian and Malaysian startups.
According to the statement, Malaysia and Indonesia have shown immense commitment to fostering sustainable economic development and promoting the growth of the green economy.
Cited data from the Malaysia External Trade Development Corporation, it said the total trade value between Malaysia and Indonesia rose 43.5 percent to MYR95.1 billion ($21.6 billion) in 2021 compared to 2020.
Total Malaysian exports to Indonesia were up 32.5 percent to MYR39.22 billion ($6.9 billion) while total imports saw a 52.3 percent improvement to MYR55.88 billion ($12.7 billion) in the same period.
The partnership will help Penjana Kapital find new and impactful investment opportunities from emerging sectors in Indonesia’s fast-growing economy.
Further, Indies Capital Partners and AC Ventures, with the help of Penjana Kapital, will help Indonesian and Malaysian companies pursue scalable business opportunities, exchange key knowledge, and share technology for industry development and trade networking.
“Penjana Kapital, Indies Capital Partners, and AC Ventures are all major players in the investment landscapes of Indonesia and Malaysia,
“Through cross-border cooperation and investment, our firms have the opportunity to tap into new markets, access new sources of capital and expertise, and drive innovation and growth in both markets,” said Pandu Sjahrir, Founding Partner at ACV and Managing Partner at Indies.
“By working together, we can also deepen economic ties between Indonesia and Malaysia, and promote a more interconnected and prosperous ASEAN region,
“The key to realizing this potential is in fostering a spirit of collaboration and prioritizing the interests of both nations,” he added.
Malaysian Prime Minister Anwar Ibrahim and Minister of International Trade and Industry Senator Zafrul Tengku Abdul Aziz witnessed the signing ceremony during the Prime Minister’s two-day working visit to Jakarta.
Penjana Kapital incorporated in 2020 as part of the Malaysian government’s initiative to catalyze the development of innovative startup companies.
Its main role is to stimulate the Malaysia’s economy by futureproofing Malaysia businesses through innovation from start-ups, funded by private capital from strategic international and private domestic investors, matched by the government and in turn creating a vibrant and sustainable venture capital industry in Malaysia.
Penjana Kapital administers and facilitates the deployment of the Dana Penjana Nasional, a matching fund-of-funds program where the Government of Malaysia will match, on a 1:1 basis, funds raised by the venture capital fund managers from foreign and private local investors.
Indies Capital Partners is one of the earliest established private credit-focused managers in Southeast Asia.
Since its inception, the firm has evolved into a top-quartile, award-winning alternative asset manager in the region, with strategies spanning private credit, private equity, and more, with more than $800 million in assets under management.
ACV is a leading Southeast Asian venture capital firm investing in early-stage technology startups focused on Indonesia and ASEAN.
The firm partners with and empowers entrepreneurs with more than capital by combining operational experience, industry knowledge, deep local networks, and resources to create value for the companies it backs.
With more than $500 million in assets under management, ACV is a generational partner to founders driving positive societal change and economic impact in Indonesia and beyond.