OJK Strategy To Encourage Startup

Ilustrasi (dok)

JAKARTA (IndoTelko) - The growing number of startup companies in Indonesia has made several states’ officials to give special attention on its development, starting from President Joko Widodo (Jokowi) who had a discussion opportunity for Go-Jek founder and drivers earlier.

Besides the President, Minister of Communication and Information Technology Rudiantara and the Head of Creative Economy Agency Triawan Munaf also held several road shows in order to build a healthy ecosystem for startups.

The latest action is from the Financial Services Authority (OJK) who issued regulations regarding crowdfunding models and venture capital funding this year, to encourage financing for startups.

One that will be considered in crowdfunding is the aspect of investor protection. Besides the venture capital scheme will be established to attract a number of investors to build the startups business.

The venture fund company will manage the investments from investors who are coming to invest in startup companies.

Still finalize

The Financial Service Authority's Deputy Commissioner of Non-Bank Financial Industry Supervisor Dumoli Pardede said that the funding concept is still under finalization stage for startups who involved venture capital legal entities which usually formed as incorporated company, cooperatives and a limited partnership.

"We introduce them to form an investment contract for managing and distributing funds on a Startup business venture. Their obligation is to assign members as mentors in the startup," Dumoli said, lately

The obligation is valid for 10 years, whereas the venture capital firms can tie up a deal with the startup of additional coaching time.

If this model is adopted, the venture capital company should have an expertise capacity, particularly in the field of digital industry.

"They are expected to have the ranks of members who understand the infrastructure, capital management and business characteristics of information communication technology in order to facilitate the monitoring of performance of venture capital," Dumoli said.

OJK is also considering proposing to the Directorate General of Taxation, Ministry of Finance about the importance of tax incentives, for example 5% final tax similar as initial public offering.

"The incentives are given to attract venture capital," Dumoli said.

The Financial Service Authority is targeting draft regulations to be completed in late October 2015. The structure of the draft will contain 13 chapters, consisting of business activities, agreement, company's health, source of funding, venture funds, newsletters, and sanctions.

According to the OJK's data (June 2015), the venture capital company's total assets is Rp8.909 trillion. The amount of investments is Rp6.897 trillion.

If the regulation for the venture capital is included in the startups will become clearer, fresh funds will increasingly flowing to the entrepreneurs of the future. Hopefully. (Id‎)