Pertamina NRE Allocates 7,7 Trillion Rupiah for Investment in Energy Startups

PT Pertamina through its subsidiary Pertamina New and Renewable Energy (Pertamina NRE) will allocate $500 million or around 7,7 trillion Rupiah for startup investments in the energy sector. This Energy Fund initiative will be managed with MDI Ventures.

Reporting from Deal Street Asia, Deputy Minister of SOEs I Pahala Mansury revealed that the funds will be allocated for investment for five years. "We hope that more investors will join [in this managed fund]," he said.

In news DailySocial.id Previously, the Energy Fund was one of three managed funds which were inaugurated by the Ministry of BUMN in September 2022 at the BUMN Startup Day event. The launch of the three managed funds was agreed through the signing of the Head of Agreement (HoA).

Meanwhile, the other two managed funds were injected by PT Bio Farma (Bio Health Fund) and PT Pupuk Indonesia (Agri Fund). These three managed funds will become investment vehicles in the startup stage early to growth in the related vertical.

To DailySocial.id, CEO of MDI Ventures Donald Wihardja said that the formation of this managed fund was not only to earn money capital gain, but also bring synergies, new products, to the parent company. "The investment [of the three managed funds] is targeting the seed until series B and C, but this vertical-focused yes. Unlike the Merah Putih Fund, which focuses on startups soonicorn,"said Donald.

In official statement, Director of Human Resources and Business Support for Pertamina NRE Said Reza Pahlevy said that this initiative aims to accelerate the energy transition. Sectors targeted by Pertamina include: low carbon solutions, new and renewable energy (EBT), and the future in the energy sector.

"The energy transition requires the collaboration of various parties. Pertamina NRE's collaboration with MDI Ventures, which is supported by the Ministry of SOEs, opens up funding opportunities for startup companies that share the same passion for developing clean energy," he said as quoted from CNN.

Energy startup ecosystem

On writing feature Three years ago regarding the wave of energy startups, it was said that the enthusiasm of startup players in this sector was starting to rise. However, its implementation is still difficult due to a number of factors. For example, investing in this sector requires a large amount of capital, but it takes a long time to make a profit. Not to mention the assumption that products are still expensive, such as solar panels.

Since the last few years, the startup investment climate has started to focus on the green sector, energy is one of them. Investors are starting to focus on impact financing (impact) is not only social, but also environmental. Even the government has mobilized state-owned enterprises to large technology companies to be involved in encouraging the development of the renewable energy ecosystem.

Currently, a number of startups are focusing on renewable energyin Indonesia, among them are SolarKita, Xurya, Warung Energi, Weston Energy, Forbetric, Erenesia, Khaira Energy, and Syailendra Power. Most work on the potential of solar power.

Powerbrain offers a solution smart energy management via IoT devices (including sensors) to automation software to maximize energy utilization. Meanwhile, SolarKita offers services end-to-end from consultations related to Solar Power Plants (PLTS), to home surveys and taking into account the conditions and situations for PV mini-grid installations.

SolarKita was one of them injected by the non-profit organization New Energy Nexus, which focuses on funding, programs, and networks that support startups and businesses in the clean energy sector. Also established as a non-profit organization, the Achmad Zaky Foundation (AZF) also focuses on investment in the financial sector impact.