China’s Venture Capital Firms Flock to Indonesia as Relations with India Sour

KOMPAS.com – Deteriorating India-China relations over border conflicts have created new opportunities for Indonesia to attract new investments from China.

There are reports of Chinese investors facing complications in putting their money in India and business relations have severely soured that venture capital firms have found it impossible to invest in any company in the South Asian country.

This has presented Indonesia with the advantage of luring in Chinese investors that have abandoned ship on the Indian economy.

Chinese venture capitalist Shunwei Capital has voiced their active interest in exploring options for investing in Indonesia.

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Founded by Xiaomi founders, Lei Jun and Tuck Lye Koh, Shunwei Capital owns $3 billion or Rp 42.3 trillion in operational funds.

It has decided to maintain its existing investment portfolio in India without further expansion.

In Indonesia, Shunwei Capital has injected funds into a handful of start-ups including Evermos in e-commerce and Pahamify in edu-tech.

Another Chinese firm looking to diversify its investment in Indonesia is BAce Capital, part of Ant Group, which was established by Alibaba Group founder Jack Ma.

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