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The Malaysia Digital Economy Corporation (MDEC), the Malaysian government agency responsible for developing the national information and communications technology (ICT) industry, last week announces its strategic partnership with Kejora, Indonesia’s leading company-building Venture Capital firm. The collaboration was formally signed to facilitate business expansion opportunities for a mutually beneficial and synergetic relationship between companies under the portfolio of each party.

“MDEC is committed to driving this synergistic approach to connect MDEC’s digital economy leadership in the areas of market access and IP creation with KEJORA’s expertise in Indonesia’s funding ecosystem,” said MDEC CEO Dato’ Yasmin Mahmood.

She explained that MDEC will provide Kejora and its affiliated companies access to potential Malaysian clients and venture capital network; a soft landing platform in Malaysia; and support over insights on financial resources, strategic partners, and business models refinement. In return, Kejora will provide similar support for MDEC in Indonesia.

Founding partner of Kejora Group Andy Zain said: “This is an opportunity for both parties to learn from each other. We are delighted with the partnership, as it allows us to continue building and investing in technology start-ups – creating a tech eco-system of venture builders, investors, incubators, event space, and co-working space. We look forward to further contributing in the national’s digital roadmap.”

Capital Needs for Start-Ups

Indonesia’s e-commerce sector has seen remarkable growth over the years, yet the protracted capital problems are still identical. According to the Investment Coordinating Board (BKPM), investment realization in the e-commerce industry has dropped significantly for the past two years. The Indonesian government swiftly responded by issuing Presidential Decree No. 44/2016 on the Negative Investment List to attract more Foreign Direct Investments (FDI) in the sector. Both MDEC and KEJORA hope this agreement will expedite the development of start-ups in Indonesia.

The move also marked MDEC’s instrumental role in facilitating three alliances between Malaysian and Indonesian tech companies, signified by a ceremony of document exchanges that outline their intention to collaborate. The alliances are between:

  1. PT Sigma Cipta Ceraka or Telkom Sigma and TriAset Sdn Bhd

The parties is looking at the possibilities of collaborating closely in improving the localisation of TriAset’s latest web based treasury solution.

  1. Jocom and Lojai.com

The MoU is for the acquisition of shares in Lojai by Jocom for a foothold into Indonesia by creating a portal that combines both online web based browser and mobile commerce

  1. IFCA Property365 Indonesia & PT. Sindeli Propertindo Abadi
  2. Sindeli Propertindo Abadi is exploring the possibility of investing in IFCA software to implement IFCA real estate business solution for PT Sindeli’s mixed used development located in Pasar Rebo, East Jakarta.