Venture Capital Companies

Minister of Finance Regulation No. 18/PMK.010/2012 on Venture Capital Companies (“Regulation”) was issued to comply with Articles 8 and 11 of Presidential Regulation No. 9 of 2009 on Financial Institutions (“2009 Regulation”).

Article 8 of the 2009 Regulation requires a Minister to regulate the establishment of a financial institution and business activities. Meanwhile, Article 11 states that a Minister will supervise and develop financial institutions.

Article 1 (2) defines a “Venture Capital Company” (Perusahaan Modal Ventura – PMV) as a business entity that provides capital financing/equity investments to an investee company in the form of equity, convertible bonds, or revenue sharing.