A Guide to Angel Investors in Indonesia

Businesses resort to angel investment in Indonesia to fund new business ventures. What is an angel investor and can a foreigner become one?

A lot of startups and organizations are resorting to angel investors in Indonesia to fund and jumpstart their new business ventures. Angel investment in Indonesia has surged over the years as many individuals have obtained better investment returns than they can acquire from conventional investment methods.

So what is an angel investor? Simply put, an angel investor in Indonesia is an individual who is financially capable or wealthy, and who can inject money into new entrepreneurial companies or startups for their growth and expansion in the early stage.

Angel investors can be someone you know, such as family members or friends; or someone you don’t know at all and they can be anyone from doctors to lawyers, customers to other entrepreneurs.

Once an angel investor in Indonesia has put their money into a startup, they usually own a part of the business. The amount contributed amount greatly depends on the business requirements and its industry.

Several renowned angel investors in Indonesia are Danny Oei Wirianto, Ben Soebiakto, Grace Tahir, Shinta Kamdani, Victor Fungkong, Shinta Dhanuwardoyo, and Sugiono Wiyono. Here’s your guide about angel investors in Indonesia.

Pros and Cons of Businesses Turning to Angel Investment in Indonesia

If you have decided to turn to angel investors, you need to understand its pros and cons so that you can grow your business more effectively.

Pros of Turning to Angel Investors

  • Less risky than getting a loan
  • Mutually beneficial for both the business owner and angel investor
  • Angel investors provide diverse knowledge and experience to the organization
  • Businesses do not need to pay angel investors every month compared to lending institutions

Cons of Turning to Angel Investors

  • The possible loss of control over the business
  • Profits have to be divided between the business owner and the angel investor
  • Some angel investors may not be trustworthy and may want to take total control over the business eventually
  • Angel investors are not recognized by any official or legal authorities

Industries with the Most Angel Investors in Indonesia

In Indonesia, some industries have more angel investors than others due to their potential returns and growth opportunities.

Below is a list of industries with the most angel investors in Indonesia:

  • Mobile technology
  • Peer-to-peer (P2P) lending
  • Restaurants, catering, and food and beverages
  • Information technology (IT)
  • Logistics
  • Healthcare
  • Property technology
  • Children’s entertainment
  • Handicraft
  • Employment agencies
  • Education
  • Cosmetics
  • Crowdfunding

Can Foreign Investors Become Angel Investors in Indonesia?

Indonesia has relatively liberal and open policies when it comes to foreign investments, and investments made by angel investors are no exception.

Therefore, the Indonesian government encourages both local nationals and foreigners to become angel investors if they have the financial capability.

In other words, foreigners are not restricted to become angel investors in Indonesia under the country’s laws and regulations. Furthermore, they can be angel investors in Indonesia and other foreign countries at the same time.

How Cekindo can Assist

Cekindo is the leading business firm for entrepreneurs and investors who are seed capital, business partners, and angel investors who are interested in starting or expanding their businesses.

The search for an ideal angel investor for your business can be performed via a simple process on Cekindo’s network. It is no longer necessary for you to move to big cities to get funding for your business. Instead, you can easily find locally-based angel investors that meet the specifications of your startup or project.

The experts at Cekindo help connect entrepreneurs like you with potential angel investors from all over the world. The partnership doesn’t just bring capital funding, but also immense experience in your market sector.

Furthermore, we can also assist in company registration and business licenses in Indonesia, among others. Schedule an appointment with us now. Complete the form below.

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Pandu Biasramadhan

Pandu is the Consulting Manager at Cekindo. He has extensive experience in working with government agencies. Notably, he has provided market-entry solutions for enterprises in Indonesia and managed regional partnership channels in Southeast Asia. At Cekindo, Pandu aspires to lead the consulting team to provide top-quality market-entry services and maintain a portfolio of global clientele. His specialty is market-entry advisory and business process outsourcing.