Indonesian state-owned firm Pertamina’s renewable energy subsidiary, Pertamina NRE, and Telkom Indonesia’s venture capital arm, MDI Ventures, are likely to achieve the first close of their energy fund at $100 million in the first quarter of next year.

The fund will begin to invest in startups after hitting the first close. “We aim to invest in at least three startups next year,” Pertamina NRE’s corporate secretary, Dicky Septriadi, told DealStreetAsia.

Dannif Danusaputro, CEO of Pertamina Power, said the capital raised in the first close will be fully deployed in three years. “In the first year, we will deploy at least $40 million,” he told DealStreetAsia.

The company is exploring potential investments across the renewable energy sector spanning hydrogen, wind, and solar, along with carbon offsets and electric vehicles.

DealStreetAsia had earlier reported that Pertamina NRE will be investing $500 million in an energy fund over a five-year period. Pertamina NRE had signed an agreement with MDI Ventures in October last year to collaborate on the energy fund.

Danusaputro said the company is open to roping in new investors for the fund, including foreign investors. Earlier this year, Abu-Dhabi based renewable energy firm Masdar had picked up a 5% stake in Pertamina Geothermal’s initial public offering (IPO).

According to local media, Pertamina NRE plans to invest $30 billion in renewable energy projects in Indonesia, with around $3 billion to be deployed into electric vehicle projects.

Danusaputro explained that the company is a key player in Indonesian Battery Corporation (IBC), an ecosystem for electric vehicle batteries consisting of MIND ID, Aneka Tambang, and Pertamina.

IBC is estimated to complete the building of an EV battery plant by 2026 in partnership with CATL and LG Energy Solutions. Pertamina NRE also signed an agreement with Electrum, a joint venture between IDX-listed energy firm TBS Energy Utama and tech giant GoTo, last year for a partnership in the electric vehicle industry.

In the long term, Pertamina NRE aims to list on the Indonesia Stock Exchange (IDX), following in the footsteps of other Pertamina subsidiaries. However, the company will prepare its strategy carefully without rushing into an IPO and also create good value for investors, according to Danusaputro.

For MDI Ventures, an Indonesia-based multi-stage venture fund with three unicorns in its portfolio, the partnership with Pertamina marked its foray into clean energy. It also has several thematic funds such as the Agri Fund in collaboration with Pupuk Indonesia; Bio Health Fund in collaboration with Biofarma; TMI Fund in collaboration with Telkomsel Mitra Inovasi; and Impact Fund, which is in its formative stage.

Earlier this year, the firm announced a successor to its early-stage-focused funds Arise and Centauri, both of which are now fully deployed. Called Ascent Fund III, the $200-million new fund will be managed by a new platform called Ascent Venture Group.

Dealstreetasia