Indonesian FinTech startups have attracted global venture capital giants, such as the Japan-based venture capital firm CyberAgent Ventures. Earlier this month, the firm announced that more than half of their new US$50 million fund will be dedicated to Indonesian startups.
Steven Vanada, Vice President of the firm announced:
“We are very bullish, especially on Indonesia. In the next few years, I think we will see a tipping point.”
The VC fund will most likely focus on bitcoin startups like Blossom that utilizes an innovative technology such as the blockchain to solve problems of locals that the banks cannot. For example, Blossom attracts global investors to fund small business in Indonesia that are ready to launch. Twelve months later, the profits of the funded business will be distributed to the investors, with an additional 7.5 % of return.
According to the World Bank inclusion Data published in 2014, the percentage of Indonesians above 15 years of age with a bank or a financial account stood at about 36%, which was substantially lower than most countries in East Asia and the Pacific.