HSBC has announced the ASEAN Growth Fund, amounting to US$1 billion (IDR 16 trillion), aimed at accelerating the expansion of startups in ASEAN.
François de Maricourt, President Director of HSBC Indonesia, said that the HSBC ASEAN Growth Fund focuses on companies targeting expansion into the Southeast Asian market.
The funding supports companies in new economic sectors, corporations, and non-bank financial institutions, considering operational business metrics related to portfolio assets’ cash flow generation, rather than solely relying on traditional financial metrics.
“With a long history of 140 years in Indonesia, HSBC has been supporting businesses and the corporate world to grow rapidly,” François said in a media statement on March 28, 2024.
“The launch of this latest funding enables us to further support new economic companies in Indonesia and ASEAN, including startups and growing companies, as they expand into ASEAN and accelerate their business cycles,” François added.
A recent HSBC survey of 600 companies operating in Southeast Asia showed that 42 percent of respondents focus on operational digitization, while 40 percent focus on growth in Southeast Asia, and 37 percent on research and development.
The survey indicates that 89 percent expect intra-ASEAN trade to increase this year, with 32 percent predicting an increase of more than 30 percent.
About 81 percent of companies in Indonesia plan to invest more in ASEAN, a significantly higher figure compared to 52 percent intending to increase investment outside ASEAN.
Expanding into ASEAN faces challenges such as macroeconomic uncertainty and rapid changes in regulations and policies.
Two out of three companies say that the main strategy to overcome expansion barriers is ease of making and receiving payments.
“The rapid digital adoption in ASEAN means that the business world increasingly needs digital banking partners capable of supporting their growth,” Riko Tasmaya, Managing Director of Wholesale Banking HSBC Indonesia, said.
“Banking partners must fully understand different regulations and cultures, as well as utilize their expertise to formulate optimal solutions. Additionally, they must meet the fundamental needs of cross-country growth strategies to ensure business expansion success, whether in ASEAN or beyond,” Riko added.
