Venture Capital Industry Shifts Focus to Trading Sector

Significant Portfolio Reallocation

Indonesia's venture capital firms have significantly shifted their investment focus to the trading sector, with 46.48% of total portfolio value allocated to this area, amounting to Rp7.86 trillion as of October 2025. This strategic reallocation reflects the sector's resilience during economic turbulence and its growth potential through digitalization and e-commerce platforms.

Expert Analysis

Heru Sutadi, Executive Director of Indonesia ICT Institute, attributes the trading sector's dominance to its ability to withstand economic shocks, particularly during the ongoing tech winter. The sector's attractiveness is further enhanced by its potential for rapid returns and high liquidity, making it more appealing to venture capital investors compared to higher-risk sectors like pure technology investments.

Challenges and Future Outlook

Despite the positive outlook for the trading sector, venture capital firms face significant challenges including high credit risk, stringent regulations, and increasing competition from fintech companies. To address these challenges, industry experts recommend diversifying investment portfolios, focusing on profitable startups, enhancing due diligence processes, and seeking downside protection mechanisms.

Industry Projections

For 2026, the venture capital industry is projected to maintain a positive growth trajectory, with an expected 3-5% year-on-year growth in funding. However, industry players are advised to remain cautious about potential risks such as global inflation, geopolitical tensions, and intense market competition. The focus is likely to shift towards sectors like MSMEs and green initiatives while maintaining robust risk management practices.