Malaysia’s IT agency MDEC spreads its wings to Indonesia

By Ervina Anggraini June 8, 2016

Signs MoU with Indonesian VC firm Kejora
MDEC aims to help take Indonesian startups regional

Malaysia’s IT agency MDEC spreads its wings to Indonesia

MALAYSIA’S national ICT custodian Malaysia Digital Economy Corporation (MDEC) has spread its wings to neighbouring Indonesia, where it has partnered with local venture capital (VC) firm Kejora to help propel e-commerce and startup companies to the regional stage.

This comes in the wake of the startup and investor communities in Malaysia and Indonesia declaring in February that they would work together to collectively develop the ecosystem in both countries.

The non-exclusive agreement between MDEC and Kejora, signed in Jakarta on May 3, would expand business opportunities for companies in both countries, the two parties said.

“The partnership will allow us to share our experiences and knowledge, as well as our expertise in terms of policy and connections with investors in Malaysia, for startup and e-commerce players in Indonesia,” said MDEC chief executive officer Yasmin Mahmood.

She said the partnership would provide opportunities for such Indonesian companies that currently have trouble getting funding from foreign investors.

Through this partnership, MDEC said it would also provide access to markets and its intellectual property expertise that would help Kejora portfolio companies monetise their assets and become self-sustaining.

The government agency cited its long experience working with multinational companies in Malaysia. MDEC oversees the Multimedia Super Corridor (MSC Malaysia) project, which aims to further develop the ICT industry; and is also the lead agency for the Digital Malaysia programme, which aims to transform the country into a ‘digital economy.’

Meanwhile, Kejora founder Andy Zain said working with MDEC would provide its startups with access to potential clients, partners and investors in Malaysia.

“I am amazed to know that digital economy contributed 17% to Malaysia’s total GDP (gross domestic product) as at the end of 2015 – Indonesia is targeting a 19% contribution only by 2019,” he said.

Andy added that Indonesia can learn much from what Malaysia has achieved in this space over the last two decades.

Related Stories:

Malaysia and Indonesia in startup ecosystem partnership

Indonesia’s vision: 1,000 startups by 2020 