Indonesia's TelkomMetra Considers Sale of MDI Ventures Amid Corruption Fallout and Funding Drought

Bearish (-0.4)Impact: Medium

Published on July 30, 2026 (105 days ago) · By VibeTrader

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Indonesia's TelkomMetra Considers Sale of MDI Ventures Amid Corruption Fallout and Funding Drought

TelkomMetra, a subsidiary of Indonesia's largest state-owned telecom conglomerate PT Telkom Indonesia (Persero), is considering the sale of its venture capital arm, MDI Ventures, following a corruption verdict involving former executives and ongoing pressures to streamline its portfolio [1]. According to four people familiar with the matter, the sale process is at a preliminary stage, and no final decision has been made. Jefferies has been hired to advise on the potential deal, though both Jefferies and TelkomMetra declined to comment on the matter, and MDI Ventures stated it is not in a position to disclose further information at this time [1].

A letter from MDI Ventures, seen by CNBC, confirmed that TelkomMetra is assessing various strategic options for MDI, including a sale, and has requested stakeholder feedback by July 17 [1]. MDI Ventures manages $830 million in total committed assets and is one of Indonesia's largest corporate venture capital firms, with capital from institutional investors in South Korea, Singapore, and Norway [1]. The firm has invested in more than 80 companies, including six unicorns such as Kredivo and Nium [1].

The potential sale comes in the wake of a Jakarta court's June verdict, which found four former executives of MDI Ventures and BRI Ventures guilty under Indonesia's anti-corruption law for their investments in the now-collapsed agritech startup TaniHub Group [1]. This case has drawn attention to Indonesia's anti-corruption laws, which allow prosecutors to pursue criminal cases against executives for alleged losses to state finances [1].

The move also aligns with broader efforts to reduce the number of subsidiaries under Telkom Indonesia (Persero), as local media reported that Danantara Indonesia, the country's sovereign wealth fund, had previously requested a reduction of 10 subsidiaries by the end of June, though CNBC could not independently verify this report [1]. The Indonesian tech sector is experiencing a multiyear funding drought, with capital raised falling to $213 million in 2025, down 38% from the previous year and 85% below 2023 levels, according to Tracxn [1].

CONCLUSION

TelkomMetra's consideration of a sale of MDI Ventures reflects both internal pressures following a corruption scandal and broader market challenges in Indonesia's tech sector. The outcome of this strategic review could have significant implications for state-backed venture capital and the country's startup ecosystem. Stakeholder feedback and further developments are expected in the coming weeks.

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Sources: cnbc.com