The regulation will be finalised in June 2016, includes tax incentives and minimum requirement of investment
Dumoly F. Pardede, Deputy Supervisor of Non-Bank Financial Service Commissioner of Indonesia’s Financial Service Authority (OJK), announced that the government institution is set to finalise a regulation for angel investment on June 2016.
As reported by business daily Kontan, the regulation will set the minimum amount of investment to be given into one startup at IDR1 billion (US$76,000) while the maximum number of startups that an angel investor can invest in is four.
For every additional number of startups (beyond the limit of four) the angel investor wants to fund, the person will need to add another IDR1 billion (US$76,000) to the minimum balance.
If the total number of startups that an angel investor had funded reaches 20 companies, then the investor is obliged to set up a Venture Capital firm.
The regulation is designed to provide a legal framework for every financial business activity.
Furthermore, the OJK also stated that it is currently in talks with Ministry of Finance to set up tax incentives for angel investors based upon the consideration that the target for the investments tend to be small and medium-sized enterprises.
Based on recent talks between the institution and industry players, there is also a possibility of setting a secondary board (a stock exchange) especially for angel investors.
However, on a different occasion, Vice Chairman of Indonesian Chamber of Commerce Chris Kanter stated that there is urgency for the government to set up a secondary board as angel investment is a relatively new concept in Indonesia.
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