Indonesian commercial bank PT Bank Tabungan Negara (Persero) Tbk (Bank BTN) and PT Mandiri Capital Indonesia (MCI), the corporate venture capital arm of Bank Mandiri, have signed a term sheet to establish the BTN Fund, targeting investments in digital technology with a focus on housing.
The duo said in a statement on Wednesday that this collaboration marks a significant move for Bank BTN in enhancing its digital housing ecosystem, aligning with its goal to be recognized as the leading mortgage bank in Southeast Asia by 2025.
The BTN Fund is expected to catalyze the realization of these aspirations.
For its implementation, Bank BTN will partner with MCI, the fund manager for the BTN Fund.
MCI as one of the leading corporate venture capital firms, has a track record in diverse sectors including embedded finance, open banking, software as a service (SaaS), and climate investment.
As the fund manager, MCI will actively leverage synergies between startups and the comprehensive business ecosystem of BTN, MCI, and other state-owned enterprises in Indonesia.
According to the statement, the BTN Fund is strategically designed to invest in startups within sectors aligned with BTN’s business objectives and emerging market trends, including prop-tech, mortgage tech, embedded finance, construction tech, open finance, SaaS, and other key areas.
Integrating these startups’ products and services will support Bank BTN’s operations in transaction handling, sales channels, and process optimization.
This approach positions the BTN Fund as more than just an investment and it is pivotal in driving digital advancement within the Bank BTN and the wider Indonesian digital ecosystems.
Additionally, establishing the BTN Fund represents a concerted effort to foster cross-sector collaboration and strengthen ties between state-owned enterprises.
“The BTN Fund exemplifies BTN and MCI’s dedication to advancing digital transformation within the Bank BTN ecosystem,” said Dennis Pratistha, MCI’s Investment Director.
“As an active investor, the fund will stimulate value creation for its investees through business development, capitalizing on synergies within the ecosystems of Bank BTN, MCI, and other state enterprises,
“This aligns with our goals of fostering digital transformation, enhancing Bank BTN’s operational efficiency, and bolstering startup growth,” he added.
According to the statement, the BTN Fund is envisioned as a strategic enabler, inviting innovation and startup participation in solution development.
This initiative is anticipated to be instrumental in cultivating a robust digital technology ecosystem, particularly within Bank BTN’s business ecosystem.
“Aligned with our aim to become the top mortgage bank in Southeast Asia by 2025, this partnership underscores our commitment to reinforcing our industry standing and integrating into a more innovative ecosystem,
“We are enthusiastic about collaborating with MCI and startups capable of propelling Bank BTN towards a more dynamic and modernized future,” said Setiyo Wibowo, Bank BTN’s Director of Risk Management.
According to the statement, the collaboration is also expected to foster digital economic growth in Indonesia, aligning with the government’s vision of promoting technological advancement and digital service innovation for inclusive and sustainable economic development.
MCI is a subsidiary of Bank Mandiri, operating in the venture capital sector. The firm acts as a bridge between the Mandiri Group and startups, fostering innovation and synergy initiatives.
MCI is dedicated to forming strategic partnerships to accelerate innovation within Indonesia’s digital ecosystem.
Furthermore, it invests in startups that align with and synergize with the Mandiri Group’s innovation objectives.
Since its inception in 2015, MCI has facilitated investments and cultivated partnerships between its portfolio and the Mandiri Group.
Currently MCI have several funds including: Balance Sheet Fund, Merah Putih Fund, and Indonesia Impact Fund.
Notable companies in its current portfolio include: AgriAku, Amartha, Ayoconnect, Cakap, Greenhope, iSeller, Kecilin, PrivyID, PTEN, Qoala, Sinbad, and Yokke.
Bank BTNis a state-owned enterprise specializing in the banking sector.
Committed to serving and supporting the housing finance sector, Bank BTN offers three main product lines: personal banking, business banking, and Sharia banking.
Indonesia’s Bank Mandiri collaborates with fisheries startup FishLog to support MSMEs
