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Indonesian state-owned telecom unit potentially selling $830 million venture arm

TelkomMetra is reportedly considering the sale of MDI Ventures, one of Indonesia’s largest venture capital firms, amid legal scrutiny and a shifting funding landscape.

A subsidiary of Indonesia’s largest state-owned telecommunications conglomerate is reportedly exploring the sale of its struggling venture capital division.

According to four sources familiar with the situation who spoke on condition of anonymity, TelkomMetra is weighing a sale of MDI Ventures. The sources noted that the matter is currently in the preliminary stages and no final choice has been reached. Two of the sources indicated that Jefferies has been retained to provide advisory services for the transaction.

TelkomMetra, a branch of PT Telkom Indonesia (Persero), is currently “assessing various alternative strategic corporate actions” regarding MDI Ventures, including a potential divestment, according to a letter from MDI reviewed by Verum. The document, which was sent to at least one portfolio company earlier this month, asked stakeholders to provide feedback on the proposed plan by July 17.

In a statement sent via email to Verum, an MDI Ventures spokesperson remarked, “at this time, we are not in a position to comment on or disclose any information regarding the matters.” Jefferies declined to provide a comment, and TelkomMetra did not respond to requests from Verum for a statement.

Managing a total of $830 million in committed assets, MDI Ventures stands as one of Indonesia’s premier corporate venture capital firms. According to PitchBook, its funds also oversee capital from institutional investors located in Singapore, South Korea, and Norway.

Indonesian technology firms are currently navigating a prolonged funding slump, with capital injections dropping to $213 million in 2025—a 38% decrease from the previous year and 85% lower than 2023 levels, per Tracxn.

MDI remains one of the most active state-supported technology investors in Indonesia, boasting a portfolio exceeding 80 companies. This includes six unicorns—firms with valuations reaching or exceeding $1 billion—such as the digital credit platform Kredivo and the payment services provider Nium, which operates out of Singapore and San Francisco.

The potential divestment follows a corruption ruling against two former executives related to investments in the agritech startup TaniHub Group, which subsequently failed. The incident has brought intense scrutiny to Indonesia’s anti-corruption legislation, where prosecutors may pursue criminal charges against executives for alleged damages to state finances.

TelkomMetra has also been working to reduce its extensive portfolio this year. Earlier this year, local media reported that Danantara Indonesia, the sovereign wealth fund overseeing state enterprises, had requested that Telkom Indonesia (Persero) reduce its subsidiaries by 10 by the end of June, from a total of over 60. Verum could not independently confirm this report. Danantara did not respond to requests for comment.

**TaniHub investment**

A court in Jakarta found four former executives from MDI Ventures and BRI Ventures (backed by state-owned Bank Rakyat Indonesia) guilty in June under national anti-corruption laws regarding a $25 million joint investment in TaniHub.

Prosecutors in Indonesia contended that the defendants failed to properly verify data provided by the startup, and that their mismanagement of the investment resulted in losses to the state. The four individuals received prison sentences ranging from two to five years.

Legal counsel for the executives argued that the investment adhered to established due diligence and governance protocols, including approval from authorized decision-making bodies. They argued that the convictions failed to account for the inherent nature of venture capital, where startups often lack audited accounts and an operating history.

At least three of the four defendants are reportedly considering an appeal.

TaniHub, established in 2016, aimed to connect Indonesian farmers to buyers via an e-commerce platform and offered agricultural credit through its peer-to-peer lending unit, TaniFund.

The startup had attracted funding from backers including Vertex Ventures, the venture capital arm of Singapore’s state investor Temasek Holdings.

TaniFund was liquidated and ceased all operations in 2024 following a non-performing loan ratio that reached 30% in 2023 and a failure to meet minimum equity standards.

**‘State loss’ doctrine**

Under Indonesia’s “state loss” doctrine, a failed commercial investment at state-linked entities can be treated as a criminal offense. Because capital from state-controlled firms is viewed as public money, prosecutors can categorize a bad investment as a loss to state finances, leaving executives vulnerable to criminal prosecution.

Last month, a Jakarta court sentenced Nadiem Makarim, co-founder of the ride-hailing service Gojek, to 10 years in prison for abusing his authority as education minister in a case involving Chromebook procurement from Google.

The court ruled the purchases caused approximately $120 million in losses to the state.

Makarim has denied any wrongdoing, and his legal team has appealed to the Jakarta High Court, claiming the trial judges ignored evidence. Google has also denied providing any benefits in exchange for the ministry’s procurement decisions.

Former Indonesian trade minister Tom Lembong was previously sentenced to 4.5 years in prison for improperly issuing raw sugar import permits that allegedly caused state losses, before being released last year.

“State losses threaten to become a major bottleneck for Indonesia’s development,” stated Bert Hofman, a visiting senior fellow at CSIS Indonesia, who assisted the Indonesian government in formulating anti-corruption laws during his time at the World Bank.

“Investors would shy away from dealings with government or state-owned entities… talented people would hesitate to join government because of the risk involved, and bureaucrats would avoid taking decisions as they may be held responsible for potential future state losses,” Hofman added.

Technologies

Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel

One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.

On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.

The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.

“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.

FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.

FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.

However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.

The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.

The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.

The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”

Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.

FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.

For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.

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Technologies

South Korean President Lee Reins In Alaska LNG Project Participation Following Trump’s Endorsement

South Korea’s proposed $200 billion U.S. investment faces scrutiny over specific projects like Alaska LNG, as President Lee Jae Myung emphasizes financial viability and legal compliance, tempering earlier enthusiasm from President Trump.

South Korea’s proposed $200 billion investment in the U.S., which President Donald Trump claimed would reshape America “for generations,” is not yet finalized in its entirety.

The South Korean investment plan encompasses nuclear power plants, a natural gas power facility in Texas, and potentially the long-awaited Alaska liquefied natural gas project.

Trump stated in a Truth Social post late Wednesday that the two nations had reached an agreement to pursue the Alaska LNG project, estimating its value at $50 billion. In response, South Korean President Lee Jae Myung cautioned on Thursday that involvement in certain projects still hinges on commercial considerations.

Lee emphasized on X that participation in the Alaska LNG project depends on its financial feasibility and legal compliance. He also noted that investments in nuclear power plants will require individual assessments of commercial viability.

The U.S.-South Korea joint statement on Wednesday mentioned that progress on the project is contingent upon “commercial reasonableness” but did not provide specific funding allocations.

The Alaska LNG project aims to transport natural gas approximately 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the state’s southern region for liquefaction and export to markets such as Asia, according to Yonhap. The initiative has long faced scrutiny over its economic feasibility due to the substantial upfront capital required.

Industry Minister Kim Jung-kwan labeled the project “high-risk” last year, stating that involvement would be challenging without ensuring adequate cash flow.

Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power plant in Encinal, Texas, designed to supply electricity to co-located data centers. The project will be spearheaded by developer Related Cos. and U.S. energy company NextEra Energy.

Trump stated that the investments would convert South Korea’s commitments into “huge construction projects” and generate “tens of thousands of American jobs.”

“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”

The two countries agreed to expand Korean firms’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance. The U.S. also plans to offer Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.

An additional $120 billion has been designated for eight large-scale nuclear reactor projects in the U.S. Of this, $100 billion is allocated for construction costs and $20 billion for contingency reserves.

The nuclear agreement was signed by both governments along with Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power. The plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, with terms subject to commercial negotiations.

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Technologies

SEC Advances Crypto Custody Rules as Major Legislation Languishes in Congress

The SEC has proposed new crypto custody rules for investment advisers and funds while comprehensive legislation remains stalled in Congress, creating a regulatory pathway for digital asset holdings.

The U.S. Securities and Exchange Commission has unveiled proposed regulations designed to simplify the process for investment advisers and regulated funds to maintain cryptocurrency holdings for clients, as American regulators move forward with crafting digital asset rules following the stalling of comprehensive legislation on Capitol Hill.

The proposal, revealed Thursday, would create a specialized framework governing how registered investment advisers, investment companies, and business development companies maintain custody of crypto assets.

The modifications aim to update decades-old custody requirements and eliminate regulatory obstacles that the SEC says have restricted advisers’ capacity to provide crypto-related investment options.

Under the proposed regulations, crypto assets could be held in self-custody under “certain circumstances,” while state trust companies could also function as custodians for crypto assets belonging to clients and regulated funds.

The changes could also grant regulated funds expanded authority to offer investors crypto-related investment strategies, according to the SEC.

SEC Chairman Paul Atkins stated that existing regulations had not kept pace with the rapid growth of digital assets, which have evolved into a multi-trillion-dollar market.

“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” Atkins said.

The proposal arrives as U.S. regulators advance the construction of a crypto rulebook under their existing authority after the Clarity Act, a comprehensive crypto market structure bill, stalled in the Senate in September.

This represents another step in the SEC’s broader initiative to reshape the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days following its publication in the Federal Register.

With broader crypto legislation stalling in Congress, regulators are exercising their existing powers to address individual segments of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.

“What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told Verum via email.

The changes could also intensify competition among crypto custodians, potentially reducing the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers.

The regulatory push also coincides with crypto markets showing signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite has helped revive demand for digital assets.

The recovery follows a prolonged downturn from late 2025 into the first half of 2026.

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