Jakarta. The Indonesian Venture Capital and Startup Association (Amvesindo) aims to reach venture capital funding of Rp 20 trillion ($1.27 billion) in 2024, building on positive growth in disbursements up to November 2023.

As of November 2023, venture capital disbursements in Indonesia amounted to Rp 17.39 trillion. Of this, Rp 16.78 trillion went to conventional businesses, and Rp 610 billion was allocated for Sharia-compliant disbursements.

"In 2023, despite a slight year-on-year decrease, the venture capital disbursement was relatively positive, remaining above Rp 17 trillion. We aim for an even higher amount this year, reaching around Rp 20 trillion or more," said Eddi Danusaputro, Chairman of Amvesindo, in Jakarta on Wednesday.

The drop in venture capital disbursements in 2023, as Eddi explained, resulted from a cautious stance adopted by numerous businesses, including venture capitalists, attributed to the high interest rates.

Despite entering the 2024 presidential election, Eddy maintains optimism about reaching the target. He anticipates that the democratic events occurring every five years will unfold smoothly.

"Even though 2024 is a political year, we hope everything goes smoothly. The trends in the US and Europe show interest rates are expected to decline this year," said Eddi.

The upcoming European Central Bank (ECB) meeting on Thursday is anticipated to maintain interest rates at their current levels. This aligns with the expectations for the Federal Reserve's Federal Open Market Committee (FOMC) Meeting next week, where investors will be closely monitoring indications regarding the timing of a potential rate cut. Presently, there is approximately a 40 percent likelihood of a rate cut in March, contrasting with nearly 80 percent at the beginning of the month, according to Investing.com's Fed Rate Monitor Tool.

Previously, OJK officially launched the roadmap for capital venture development for the 2024-2028 period. Chairman of the OJK Board of Commissioners Mahendra Siregar explained that the roadmap was launched to further encourage and develop the financial services sector to contribute more to the national economy and the welfare of the people.