The Potential of Bank Venture Debt Financing for SME/Start up in Indonesia Shi Yunzi- Dony Abdul Chalid
Faculty of Economics and Business, Universitas Indonesia
Jalan Salemba Raya No.4, RW.5, Kenari, Kec. Senen, Kota Jakarta Pusat, Daerah Khusus Ibukota Jakarta 10430, Indonesia
Abstract
Venture Debt is a product for SME/Startups which combining Debt and Equity brings a new financing direction. This paper aims to analyze the potential of Bank Venture Debt in Indonesia and the impact on the performance of SME/Startups, exploring the risk and the risk countermeasure for banks. Through qualitative research method with literature review and theory used the PEST, SWOT and venture debt modal to conduct detailed analysis and with the Indonesian SME/Startup and Bank related personnel interviews to support the result of research of Bank Venture Debt. The results show that the venture debt is feasible to implement in Indonesia. The positive impact is more significant than the negative impact for SME/Startup, but in terms of market compliance and the bank^s operating system is still blank and needs more strategy and policy support from the government. At the end of research based on the Indonesian environment puts forward the feasibility solutions of venture debt.
Keywords: Venture debt- Financing tool- SME/startup, Performance Impact- Bank risk aversion- Indonesia
