• Two Indonesian state banks launch $100M proptech fund.
• It targets startups innovating real estate tech and green building.
• The fund bridges financing gaps amid a housing shortage.
The $100M Fund for Tech Startups
Two of Indonesia’s largest state-owned banks have collaborated to launch a $100 million venture fund focused on property technology (proptech) and construction tech startups.
Government-specialized mortgage provider Bank BTN is teaming up with Mandiri Capital Indonesia (MCI), the corporate venture arm of Bank Mandiri, to form the BTN Fund.
It will target startups in real estate tech, mortgage lending innovation, green building solutions, and more.
Lofty ambitions
The proptech and build-tech targeted vehicle aligns with Indonesian government priorities around boosting housing access and infrastructure development.
Bank BTN aims to become Southeast Asia’s top mortgage provider by 2025.
MCI will manage the BTN Fund, drawing on its experience running partnerships with state-backed tech incubators.
The fund plans to leverage those ties to stimulate Indonesia’s proptech ecosystem.
The Bridge to Financing Gaps
Indonesia’s state banks are ramping up alternative financing channels as the country grapples with a shortage of 18 million homes.
Analysts say the BTN Fund could bridge financing gaps while creating a testing ground for new lending models.
With the government struggling to catalyze affordable housing supply, the fund may offer patient capital to innovations that expand access and efficiency.
However, bureaucratic challenges remain an obstacle for Indonesia’s public-private tech collaborations.
State-backed fund aims to bolster housing and infrastructure financing
