Mandiri Capital Strengthens Risk Management Amidst Startup Funding Challenges

Enhanced Risk Assessment Strategies

PT Mandiri Capital Indonesia (MCI), a venture capital firm, is bolstering its risk management practices amidst the challenging startup funding landscape in Indonesia. According to Ronald Simorangkir, CEO of MCI, the company has been implementing a comprehensive end-to-end risk assessment strategy since the past two years. This approach includes thorough due diligence, intensive performance monitoring through regular reporting and site visits, and an early warning system that enables swift risk mitigation.

Building Risk Management Capabilities

MCI is also focusing on enhancing its human resource capabilities by requiring all employees to pass risk management certification registered with the Financial Services Authority (OJK). This move underscores the company's commitment to maintaining robust risk management practices. Despite these efforts, Ronald acknowledged that the venture capital industry continues to face significant challenges, particularly in balancing growth, profitability, sustainability, and good governance.

Strategic Measures to Address Challenges

To address these challenges, MCI is taking three key steps: refining its investment direction and strategy to align with Mandiri Group's business plan and risk appetite, updating its investment processes with integrated investment strategies, end-to-end risk management, and data analytics, and strengthening corporate governance, organizational transformation, and human resource quality. Ronald emphasized that these measures are crucial for maintaining the sustainability of MCI's portfolio.

Evolving Fintech Investment Landscape

Regarding the fintech industry, Ronald observed that the landscape is shifting. Investors are becoming more discerning, looking beyond the potential of demographics and technology penetration to factors such as the pace of technological obsolescence and the adaptability of fintech solutions. This change is driven by the entry of financial institutions like banks into the fintech space, making it more competitive.

Industry Outlook

OJK's Head of Supervision for Financing Institutions, Agusman, noted that venture capital firms are becoming more selective in their funding amidst the current challenges faced by startups. Despite this, venture capital financing continued in September 2025, reaching Rp16.29 trillion, a slight decrease of 0.24% month-on-month but a marginal increase of 0.25% year-on-year. The total assets of the venture capital industry stood at Rp26.76 trillion, growing 2.33% year-on-year.

Conclusion

MCI's proactive approach to risk management and its strategic measures to address industry challenges position it well to navigate the evolving startup funding landscape in Indonesia. By maintaining a balance between growth, profitability, sustainability, and good governance, MCI aims to support the growth of the digital economy while ensuring the sustainability of its portfolio.