Australia’s flagship impact investment fund Australian Development Investments (ADI) has announced a strategic partnership with Indonesian venture capital firm AC Ventures under the KINETIK initiative.
The firms said in a statement last week that this collaboration aims to unlock finance for high-impact, scalable businesses in Indonesia that are driving the transition to a low-carbon economy.
AC Ventures Climate Strategy will focus on sectors such as renewable energy, electric mobility, energy efficiency, waste management & circular economy, and climate-smart agriculture, with the goal of significantly reducing CO2 emissions.
As a leading venture capital firm with a strong track record of supporting sustainable businesses, the fund is well-positioned to leverage its expertise and network to maximize the impact of this strategy.
Beyond capital, ADI will provide AC Ventures and its portfolio companies with strategic support, embedding a gender lens investment approach, assisting businesses in scaling their operations, and ensuring measurable environmental and social impacts.
This strategic partnership is also expected to attract additional private sector participation, accelerating the deployment of capital toward innovative technological solutions that combat climate change.
“The Australian Government’s commitment will enable AC Ventures to identify and support businesses that are at the forefront of the energy transition,
“ADI is dedicated to fostering partnerships that deliver financial returns while generating tangible climate, gender, and development benefits,” said Jonathan Gilbert, Minister-Counsellor – Economic, Investment and Infrastructure.
Meanwhile, Helen Wong, Managing Partner at AC Ventures, said that this partnership is a testament to the growing recognition of the importance of climate-focused investments.
“Together, we can drive meaningful change and contribute to a more sustainable future,” she added.
The announcement coincides with an Australian investor delegation visit to Indonesia, featuring long-term investors such as Macquarie Group, ANZ Bank, and Aspen Medical, alongside key stakeholders from the healthcare, logistics, infrastructure, energy, mining, and resources sectors.
Over the past decade, Australian companies have invested more than $4.3 billion in Indonesia, with annual investments now exceeding $500 million.
Increased investment in Indonesia’s small and medium-sized enterprises (SMEs) through ADI will help the country achieve its economic growth targets while drawing Australian foundation and family office impact investors into the region, said the statement.
“We want to see Australian investors recognizing and capitalizing on the opportunities Indonesia presents,
“There are many different entry points to the market, including impact-focused venture funds like AC Ventures,” said delegation leader Jennifer Westacott.
ADI invests $8M in AC Ventures’ Climate and Sustainability Fund