Great Hedge of Investment With BIC

The Crypto and Stock Markets are currently experiencing extreme conditions. The fall in market prices or bear market is due to global economic uncertainty. For example, the Covid-19 Pandemic to the Russian Attack on Ukraine have become the main factors that have contributed greatly to the increase in food and oil prices around the world.

The aftermath of uncertainty due to this war also caused the crypto asset Terra (LUNA) to plummet. Many investors who invest their assets in Terra withdraw their money when the price of the currency begins to fall. As a result, the price of Terra dropped even more and ended up being frozen in trading on the blockchain.

The latest case of the Celsius (CEL) crypto which is also starting to be abandoned by its investors. The price of the CEL cryptocurrency plunged by more than 70%. In fact, this made Celsius stop all their cryptocurrency withdrawal services.

The central bank of the United States, The Federal Reserve (The Fed), has even raised interest rates three times during the first half of 2022 and is expected to continue to increase. This interest increase is the largest in 30 years to cool the economy and control inflation.

Interestingly, Indonesia is the country with the largest economy in Southeast Asia, a diverse archaeological nation with more than 300 ethnic groups and has achieved remarkable economic growth since it emerged from the Asian financial crisis in the late 1990s. With its economy impacted by the pandemic, Indonesia went from upper-middle income to lower-middle income status as of July 2021. The Asian Development Outlook (ADO) 2022 says Indonesia’s consumer spending and manufacturing activity have been consistently rising due to the pickup in incomes, jobs, and confidence. The decision to harness digitalization brings both positive and negative influence even to the economic sector, especially in the investment field, that are benefiting from expanding demand, business climate, and unfolding varieties of investing.

As countries around the world come to terms with ongoing economic recovery from the pandemic. Throughout the year, Indonesia currency posted a significant weakening of 271 points or a correction of 1.86% against the US Dollar and became the biggest weekly correction since June 2020 and the continuity downfall of Composite Stock Price Index (ind. Indeks Harga Saham Gabungan/IHSG) to 1.6% (CNBC, 2022). Inflation, which averaged 1.6% last year, has begun to rise to 4.3% in June 2022, primarily caused by the soaring of energy prices in last May. Inflation should ease to 3.0% in the third quarter of 2022 as commodity prices increase abate. Higher prices for Indonesia’s commodity exports, however, should offset lower export volumes, keep a balanced current account and produce some revenue gains.

The Ministry of Investment/Investment Coordinating Agency (BKPM) publishes data on the realization of investment realization in the first Quarter (January – March period) for 2022, which is IDR 282.4 trillion, 28.5% higher than the same period in 2021. The achievements of the first quarter of 2022 also increased by 16.9% compared to the fourth quarter of 2021. As a reflection of economic equality in Indonesia, investment growth outside Java is currently quite stable and continues to increase significantly. In the first quarter of 2022, investment realization outside Java was IDR 148.7 trillion, an increase of 16.6% from the fourth quarter of 2021, which was IDR 127.5 trillion (BPKM, 2022).

While the widening socio-economic gaps and means to fight the inflation during the health pandemic continue to grow, it’s time to consider how we have the potential to benefit and support one another through the right kinds of investment. Impact investors connect the pursuit of risk-adjusted returns with the delivery of positive real-world outcomes through impact investing. With more investors recognized to generate a positive social and environmental impact alongside attractive and stable long-term financial returns, impact investing has been proved to be an effective hedge against volatility and downside risk (Hossain, 2021).

Nonetheless, constructing the index for the investment proved to be challenging. With the portfolio of investment in general going through 30% growth per month, Bali Investment Club (BIC) can help those who look for greater stability and is delighted to see more private capital flow toward solving pressing social needs in Indonesia such as poverty and waste management. By investing in one of many wonderful pipeline projects namely “BukaPO” and “Rekosistem”, it will also give investors rights to future deals along with many other perks. There’s no course of action to control the flow of stocks or crypto along BIC great ecosystem, your investment will also be used to support and mentors the entrepreneurs as it helps the company grows and profit even more, building a positive prominent portfolio and creating the win-win situations to reach more than meets the eye.

Join Bali Investment Club and become a member today.

BukaPO Second Round Funded

The past couple of years have been make-or-break for many industries, who have been forced to take unusual risks in order to stay afloat. The advent of user-friendly apps, tech-enabled driver networks, coupled with a global lockdown, has promoted innovation in food production and distribution. Many who refused to change have seen their business collapse. However, others also received major investments, turning “Mom & Pop” shops into national superstars in record time.

In September 2020, Bali Investment Club approved US$ 200,000 staged funding for BukaPO. A trailblazer in the Indonesian food industry, BukaPO is an online community-driven marketplace, where users can pre-order their favorite homemade meals from over 1,000 merchants across Bali. To date, the start-up has sold more than 500,000 products and brought a similar dollar amount into the hands of micro-entrepreneurs, delivering true impact value to those who need it most. BukaPO was born and operates in Bali since its launch in December 2020 and currently covers food delivery around Denpasar, Badung, and Ubud.

The team has been helping communities on a grassroots level to hop into the digital era by onboarding traditional “street and home cooks” onto its platform. This includes product promotions, free basic branding, product photography, educating and training vendors in order to gain more profit, and expanding their market through cross-collaboration. The pre-order system of BukaPO also helps to minimize the risk of financial loss often experienced by these micro business owners, as meals are paid for ahead of time, a huge change for people with very little disposable income.

Of course, BukaPO also offers many advantages to their customers, such as promos, cashbacks, and rewards that can be obtained through point accumulations from orders made in the application. Customers are also allowed to order from different vendors in one transaction, a feature that is still rare in the food-technology industry.

Founder and Chief Executive Officer (CEO) of BukaPO, Olaf Purvis, said in a recent interview that

“Pre-Order” food delivery system is a COMMON CULTURE FOR INDONESIAN CITIZENS and has been an ON-GOING TREND since before the Covid-19 pandemic or even Youtube.

The little push that BukaPO brings to this ingrained culture clearly resonates as the merchant onboarding and product sales grew by over 25 times or 6,300% in just 7 months time. Food is just the beginning.

Tom Courly, Co-Founder and Managing Partner of BIC said;

 

“We couldn’t be more proud to see a Bali-born start-up gain so much traction so fast. In fact, we’ve had to constantly adapt our growth and funding plan to meet the company’s record breaking month-on-month results. Our goal now is to help Olaf and his team get similar traction in Java, before we prepare the Series A round and aim for national deployment of BukaPO.”
According to the plan, funding will be used for business expansion and to open their second base in Surabaya City in East Java, while securing even greater market share in Bali. BukaPO Chief Technology Officer (CTO) Fajar also explained that the funds will be used to improve their user interface and make necessary changes to their operational system.

 

These necessary upgrades will ADD GREATER VALUE to both VENDORS & CUSTOMERS, and will help handle the EVER-GROWING PLATFORM TRAFFIC.

Regional Head of BukaPO, Samantha added that the East Java branch will target more than 1,000 micro business owners in the next 3 months. The Java team will also train and develop its merchant community through many educational programs to help this growing workforce provide ongoing service not just to regular customers, but to larger businesses too.

The compass is set West for Olaf Purvis and his team of community leaders who are now entering Indonesia’s largest market, Java. With a full support structure in place, Bali Investment Club is confident that BukaPO is on the right path and will continue to support the company as it continues to expand cross-country. Stay tuned for ongoing updates.

 

Want to be part of Indonesia’s impact economy?

Join the Club today.

Bali Investment Club Raises Seed Round For Rekosistem

One of the leading tech-based waste management service start-ups Rekosistem has successfully received undisclosed seed funding through Bali Investment Club’s tailored packages in order to actively support the improvement the service needs to flourish in Indonesia.

The investment will be used to back up Rekosistem’s waste management service in Jakarta and Surabaya, and also their expansion plan to other capital cities in Java-Bali Islands. The fund specifically allocates for scaling the uptake of residential areas, public users and businesses, with the target to achieve over 10x monthly revenue growth, manage more than 50 metric tons of waste per day, and increase its Redrop locations and Repickup coverages by enlarging partnerships as well as advancing its waste data mapping software and machine learning. Lastly, the budget will be used to build capable teams to strengthen the growth of the platform across Indonesia by strengthening their Tech Team, R&D Team, and Product Team.

There are around 68 million tons of waste produced in Indonesia each year, but only 7% of total waste is successfully recycled and composted. Even though there are more than 2,000,000 individual waste workers around, most work with informal contracts and are therefore paid unjustly in the average of USD 100-150 per worker per month. Rekosistem seeks to change this by providing fair compensation to all workers within its ecosystem. Along with the ever-growing population of Indonesia, comes the waste production rate per capita at 0.7 kg per day per person and it keeps scaling up. A proper waste management service is a crucial component needed to protect the environment and the health and safety of the population.

How are they able to do it in such a low return industry? Rekosistem can accomplish this by standardising control of the chain, improving productivity of waste workers and generating revenue through streams of waste management service, sales of waste, lastly plastic credit and waste accounting. As Rekosistem steadily flourished from their first waste research and project with Universitas Katolik Parahyangan (Ernest and Joshua’s Alma mater) back in 2019, the MVP (minimum viable product) was tested to the market in July 2020, and the apps and features were launched on 21st February 2021. Since the launch, the business has grown exponentially at 30% month-over-month, increased their capacity to manage over 1,000 tons of waste per month, and exploded their annual revenue growth by 12x in 2021. This includes more than 25 commercial big names such as CitraLand Surabaya, MRT Jakarta, and P&G including public places managed regularly, and over 11,000 houses regular pick-ups and 1,500 individual Redrop transactions managed monthly.

BIC’s team has looked at many waste management startups last year, and Rekosistem is with no doubt the best we have reviewed.

As the general populace is increasing and, correspondingly, the amount of waste is expanding as well, we pollute the environment by producing various products. Certain types of waste can be quite harmful and can contaminate the environment, therefore the existence of a public accessible platform of waste management service is essential for the prosperity of Indonesia.

Bali Investment Club is dedicated to improving the wellbeing of Indonesia and constantly looks for players that share the same values. We believe that by tackling impact-related issues, we can create greater shared value for all and promote a sustainable future for the next generation.

 

Join the Club today.

Invest in the change you want to see.

7 Steps To Find Your Next Investors

For many startups looking to grow their business, attracting potential investors is crucial. Consider it like a garden. Before an investor participates, you must first place the seed in the soil and get the plant to flourish a little. This is where the real work begins. Investing is all about the future, for some it’s about how you reward your future self by taking care of yourself in the present, for others it’s about taking a trend to a whole new different level. Figuring out what the investors are driven by will help you develop a mandate fit and an emotional connection for the business itself.

Every type of investor comes with their own set of terms and conditions. As a start-up company, it’s crucial to understand where you stand in the timeline of your business and the amount of money you actually need. Understanding the playing field and who to approach will help you seize that big investment you’re looking for.

What about the cost of capital? Is it better to have debt or give equity? The key to answering this lay on comprehending the weight and the amount of responsibility it gives to where you stand now. If you’re early in the business having debt could be better as it frees you from less obligations in the future, but if you’re looking for a beneficial long-term partnership, equity is for you. The basics of investment is always about returns. Depending on the projects and the type of investors, they will value returns in different ways. Here at BIC, we look to provide a healthy mix of financial returns and how the money is going to contribute to the well-being of Indonesia. See our investee checklist here.

The 7 Steps

01. Representing Investors

First and foremost, your projects have to be aligned with what they represent. Some need an impact agenda, some look for high scalability, others only invest in local startups.

02. Good Self-Image

Secondly, they not only invest in your company but also you as a person. The team you gather and the people in it will also act as a “make-or-break” factor, as your business’s survivability and means to adapt rests on them.

03. Understand The Market

Can your idea be implemented on a global scale or is it only affecting a small village? Understanding the market numbers, having good margins and traction will show that not only you are (can be) profitable, but you’re also delivering that special value that makes you stand out from the others, which will lead you to capturing a bigger slice of the market.

04. Know The Deal

What are you willing to give in return for the money? Is it a long or a short partnership? Matching your timelines to an investor agenda will help determine the nature of your relationship, it could be a transactional or a strategic one.

The deal itself can happen within a span of a month to 12 months. So don’t get discouraged if you’re getting “No” as an answer. Come back with a follow-up result in a span of months for a chance on turning that to a “Yes”, as it shows the persistence of your company.

05. Be Clear and Honest

Self-reflection will also help you determine what your business needs most, be clear and be honest. This attitude will help you to open doors you never knew existed. It can be a form of help if you do good with mentorship or networks, or it can also lead to hard cash flow if you’re ready for growth.

06. Goals of Your Project

It’s also important to determine what’s the endgame of your project. Is it to make $100,000 a month? Or to contribute to society and make you happy? Or be the next unicorn? What’s your vision? There’s also the need to build your features over time and choose which you want to bring forth as the face of your business for the next few years. Having a clear vision will show investors that you acknowledge your core and how you will add value in their life.

With great power comes great responsibility, as a founder it’s pivotal to be conscious of the perks that comes with the investments. Expect a change in working hours and in work-family dynamics. These types of commitment and preparations are needed as investors must have the reassurance that their money will be well-spent.

07. Get to Know The Battlefield

Lastly, the battlefield. What makes a great pitch? It’s when emotions meet facts. The story you’re telling, the bond you’re making with the investors, the numbers you achieve, the projections over the years and most importantly YOU. Personalising your pitch, thinking of the way you act as a torch bearer, a spearhead for your company, will help to convince investors you deserve their attention and capital.

Conclusion
Attracting investors can be challenging and time consuming. That’s why you have to prepare everything very carefully down to the smallest detail. Understanding your core and values will take you one step closer to achieving your goals. At BIC, we help companies prepare and be ready to receive funding. Think you need help getting there? Drop us a line and we’ll set up a one-on-one chat with you. Follow your dreams and make the world a part of it.

What types of companies exist in Indonesia?

As the fourth most populous country in the world and supported by strategic maritime routes and good economic stability, Indonesia offers numerous business opportunities for both domestic as foreign entrepreneurs and investors. With Indonesia’s abundance of commodities and various thriving industries, ranging from tourism to property, the archipelago has continuously proven its status as a major economic power with great potential both regionally and globally, as Indonesia is set to become the fourth most powerful global economy by 2050. According to Trading Economics, economic growth in Indonesia has steadily increased by more than seven percent per year over the last ten years and shows no signs of slowing down. It is clear why Indonesia is considered to be a global favorite of foreign investors to engage in business ventures, start fruitful collaborations and make impactful investments.

If you are looking to expand your efforts within Indonesia’s business landscape, it is important to first gain an understanding of the different types of business structures that are available. Understanding the benefits and limitations of these entities will help you choose the structure best suited for your business objectives. Generally, there are three types of private-owned companies in Indonesia: Company Limited (PT), Commanditaire Vennootschap (CV) and Firma (FA).

PT (Company Limited)

is the first and most common type of legal entity used by local business owners in Indonesia, but may also be formed by foreigners through a PT PMA. This business vehicle is preferred because the shareholders’ responsibility for liabilities and debt of the company are limited to their initial capital contributions, which protects their personal assets. There are several classified types of TPs, with the main characteristics including being a profit-driven business, having a clear corporate jurisdiction and business relationships that are governed by civil law, and generally requiring a minimum of one director, two local Indonesian shareholders and one commissioner. Establishing your company as a PT makes it more convenient to attract capital from the public as shares are easily transferable. More importantly, any Indonesian company that would like to receive foreign investments is required to have PT as its business structure. If you are keen on drawing foreign investors and capital into your business to fuel your growth, establishing your company as a PT is the way to go. Apart from the prior mentioned perks, PTs also have their disadvantages that should be taken into account. Setting up a PT comes with relatively high costs and long processing times, responsibility to make tax reports to the government and the requirement of special local and national permits for the establishment of the company..

CV (Commanditaire Vennootschap or Allied Commanditaire)

which is a business form that is not considered a legal entity as it is not governed by specific regulations, making the general partners personally liable for possible debts of the company. A CV is formed by two or more partners, which fall in the category of either active or silent partners. Active partners provide the venture with capital and run the daily business, while silent partners only provide capital, limiting their responsibility to the capital invested. Advantages of the CV as business structure consist of easier establishment with no minimum capital requirement, ability to acquire larger amounts of capital and credit, and thus greater expansion opportunities. Disadvantages include the limitation of carrying out only various business activities within certain fields, difficulty of pulling back investments, unprotected personal assets and the exclusion of foreigners as potential partners or investors.

FA (Firma)

is a business form which is incorporated by two or more partners, each being solely responsible for the company’s obligations. All members involved sign an agreement, defining the terms of the partnership including their shared name, the duration of the operations and the profit distribution. FA’s are easy to establish, have a clear legal status and allow for efficient deployment of the partner’s distinctive skills and expertise. Nevertheless, as the company is built on strong interpersonal bonds, internal conflict and tension between partners make it prone to threats for its survival and continuity. The firm is disbanded as soon as one of the members leaves, making this business entity less robust than its priorly mentioned counterparts. On top of that, partners have unlimited liability for any possible debts of the company, which potentially could be at the expense of one’s personal assets.


Each type of business structure comes with its own distinctive advantages and disadvantages. Taking the time to understand the regulations and perks related to the relevant business structures will arm you with the right knowledge and benefit your business efforts in the long run. If needed, seek local consultation to support you in deciding on the business structure which best suits your needs. The BIC team wishes you success in setting up your venture capital and will welcome your funding application when your New Paradigm business is ready to grow.

Unpacking the Impact Agenda

The ever-increasing need for sustainable growth in the global economy has given rise to new ways and principles of acquiring assets that create value not only for investors, but also for society as a whole and the environment. For those seeking alternatives to their traditional portfolios and looking for purpose-driven investments to address long-term challenges, welcome to “Impact Investing”.

WHY IMPACT MATTERS

Impact investing, a way to generate measurable positive social and/or environmental benefits while delivering financial returns, is expanding as a promising economic opportunity for investors, stakeholders, and growing entrepreneurs in the developing world. To broaden the scope of environmentally and socially clever business decisions, impact investments have emerged as a sensible response to many socio-economic challenges. This strategy allows investors to intentionally pursue investments on business models that actively combat global issues, and by doing so contribute to the healthy development of the emerging global market economies while giving back to local communities and sustaining livelihoods.

When applied to specific social causes, impact investing has the potential to bring more capital and fresh approaches to targeted issue areas, as investors can directly subsidise organisations aligned to the Sustainable Development Goals (SGDs). The relationship between impact and investments can be easily conveyed and articulated using SDGs framework. Some of the objectives include, quality education, clean water and sanitation, affordable and clean energy, industrial and infrastructure innovation and climate action.

BIG NAMES ALSO ON THIS JOURNEY

In times of recurring risk aversion, capital volatility and stringency in public funding, many of the world’s largest foundations have pledged a significant portion of their assets towards impact investing such as, Ford Foundation’s $1 billion commitment being the largest to date and Goldman Sachs Urban Investment Group who committed over $4.7 billion, facilitating the creation and preservation of housing units that affordable to both low to moderate income family.

As this new culture of impact investing in Indonesia is now maturing with the agriculture and fisheries sector as the main focus of the economic market, which is experiencing +5% revenue growth every year, more localisation efforts are being made. Now investors are involving local stakeholders in the operational and fund allocation system, enabling collaboration in the development of the supply chain market. One of the most influential investors in this sector is Openspace Ventures, which is ranked 5th in the identified portfolio with 71% influence on Indonesian economy such as Halodoc, Tani Group, Akulaku, and Sorabel.

IMPACT AS THE NEW NORMAL

It is always a challenge to combine the numerous investment activities with social and environmental objectives. Our shared interest in achieving positive goals while reaping personal financial rewards will be the beginning of many future opportunities as we give back to communities and the natural ecosystems. With the right mix of social objectives and appropriate returns, impact investment is the benchmark we look for to improve portfolio performance. This applies to all sectors.

Here at BIC we see impact investing as more than a smart move, but as a responsibility towards the world that surrounds us. Impact is no longer an option, it has become the way every business should operate. Sustainability is now a collective exercise. We invite investors who share this same vision to help us support entrepreneurs who have the heart and determination to make a difference.

Welcome to Impact Investing