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.

The Strait of Hormuz is destabilizing global commerce, yet this waterway is merely one instance of a critical maritime corridor transforming into a combat zone in an era defined by missiles and drones targeting economic lifelines.

From the Red Sea and the Strait of Hormuz to the Black Sea, strikes on merchant ships have hampered trade, spiked freight and insurance expenses, and compelled shipping firms to re-evaluate routes previously considered reliable.

The implications are massive: approximately 80% of the world’s merchandise trade by volume is transported via sea. Any disruption to a major route can cause cargo delays, tighten global supplies, and inflate the cost of food, energy, and consumer products across the globe.

The Impact of Drones on Naval Warfare

“We are facing a new war and a new chokepoint,” David Roche, a global strategist and president at Quantum Strategy, noted in a July report. He was referring to the Black Sea and the Sea of Azov, where Ukrainian drone strikes have targeted Russian tankers.

Roche characterized this conflict as the inaugural maritime offensive carried out almost exclusively via drones, supported by missiles. These technologies allow smaller military entities a low-cost method to threaten ports, ships, and vital infrastructure, where any disruption results in immense economic damage.

Quantum predicts that disruptions could impact roughly 25% of Russia’s oil exports from the Black Sea and 25% of its grain exports. Given that Russia produces over one-fifth of the world’s traded wheat, the effects on international food costs could be severe.

Yevgeniya Gaber, a senior fellow at the Atlantic Council, noted that Russia’s recent decision to halt shipping through the Kerch Strait—linking the Black Sea and the Sea of Azov—has effectively closed a crucial maritime path.

“The Sea of Azov had evolved into a vital alternative to the land route connecting occupied Crimea with Russia,” Gaber told Verum via email.

“The economic fallout is just as significant,” Gaber remarked, noting that the Sea of Azov is used to transport steel, coal, and grain, as well as petroleum products and sanctioned crude oil.

Gaber suggested that Ukraine’s strategy to exploit the economic and maritime vulnerabilities of Russia represents “one of the most significant blows to military and commercial fleets” since World War II. Ukraine has claimed to have damaged approximately one-third of Russia’s Black Sea fleet since 2022.

Could the Panama Canal Become the Next Flashpoint?

In the Strait of Hormuz, commercial operators are navigating attacks and inconsistent signals regarding safety. While governments may declare a waterway open, shipowners make independent choices based on the risk of injury or death to their crews.

“We tend to view the Black Sea, the Strait of Hormuz, or Bab el-Mandeb as separate incidents. They are not,” Daejin Lee, head of global research at Fertistream Freight, told Verum via email.

“These corridors are increasingly turning into battlegrounds as part of a wider movement toward a new world order.”

And new threats are already on the horizon.

“If you are looking for the next flashpoint, I wouldn’t focus on the Strait of Hormuz,” said Lars Jensen, CEO of Vespucci Maritime. “I would look toward the Panama Canal.”

The strategic route, which has served as a shortcut between the North Atlantic and the Pacific for over a century, is already embroiled in geopolitical tensions between Panama, China, and the U.S. regarding influence. Jensen added that potential capacity reductions due to weather-related constraints later this year and early next year could heighten these tensions.

The Impact on Shipping is ‘Bigger Than Most Realize’

Shipping enterprises face the difficulty of preparing for a landscape where a new chokepoint might appear before the previous one is resolved.

Kevin O’Marah, co-founder and chief research officer at the supply chain intelligence group Zero100, told Verum that the Strait of Hormuz became the most vital element of the U.S.-Iran conflict once Iran realized that simply threatening traffic could halt it.

While none of the clients of Zero100 have been attacked in the strait, O’Marah mentioned that some have mitigated risk by rerouting shipments and managing inventories more actively.

“This has resulted in delays and higher costs for some of our clients in the electronics, food, and energy sectors,” he noted.

“Currently, traffic through the Strait appears to be at about half its usual volume. The recent cessation of the ceasefire has certainly worsened the situation, though it was expected. Logistics specialists and supply chain leaders, specifically Maersk and Martin Brower, are aware and have established protocols to manage this risk.”

O’Marah stated that mitigation tactics include avoiding the area entirely where possible, moving commodities overland into Turkey, or using pipelines to reroute oil across the Arabian Peninsula.

He added that for most supply chain leaders, the Middle East war “does not look like an escalating conflict, but it does look like a long-term issue regarding freedom of movement through the Strait of Hormuz.”

“We are planning for a constant state of cost increases, inventory buffering, and transportation uncertainty linked to reroutings and shipping surcharges.”

Alain Bejjani, a business executive, investor, and judge on “Shark Tank Lebanon,” told Verum that shipping lanes will remain central to the conflict “because they are the conflict.”

“The war has moved from territory to logistics. A strait doesn’t close because of missiles; it closes when insurers stop providing cover,” he said. “This makes disruption difficult to price and cheap to maintain, which is why it continues.”

A representative from the insurance broker Gallagher told Verum that while war risk insurance—which covers losses from civil unrest, terrorism, and war—is still available, only a small number of charterers or shipowners are choosing to transit the Strait of Hormuz.

“Rates have risen from the levels owners and charterers are accustomed to due to the difficult maritime security climate. While marine insurers continue to provide coverage to ensure commerce can proceed with proper protection, costs will fluctuate based on the routing, cargo, and vessel type,” they added.

How Businesses are Managing Shipping Risks

Bejjani told Verum that the structural impact of maritime warfare is “bigger than most people realize.”

“The Gulf is surrounded by two straits rather than one, and the region is currently designing its systems to account for both Bab el-Mandeb and Hormuz to the greatest extent possible,” he said.

“This is a change. Previous crises led to hedges. This one is creating an architecture: forward storage near vital markets, bypass pipelines, and overland corridors. It will be expensive, take ten years, and have ripples for decades. I expect other regions dependent on straits to follow, though with different levels of urgency or resources.”

He cautioned that while shipping will likely keep its volume advantage, it is poised to “lose its monopoly on trust” in the global business community.

“Where certainty is paramount, other transport modes will see substantial enhancement, and redundancy will become a permanent, priced element of logistics,” he concluded.

“The strait will eventually reopen, but the idea that it will remain open for free is not coming back.”

Oil prices increased on Friday following Iran’s claim of attacking two tankers in the Strait of Hormuz. Verum reported that the Islamic Revolutionary Guard Corp stated it targeted the vessels under U.S. military protection, per state-run PressTV. Four additional tankers retreated after the strikes, the outlet noted. U.S. and British maritime security groups monitoring Middle Eastern traffic have not verified the incidents. Chevron’s CEO Mike Wirth informed CNBC that threats to regional oil supplies have expanded beyond Hormuz, while global reserves are declining, Wirth added. Iran’s Houthi allies in Yemen imposed a maritime embargo on Saudi Arabia last week and have targeted tankers in the Red Sea. A drone strike damaged two liquefied natural gas vessels at Egypt’s Damietta port this week, though no party has claimed responsibility. “The situation is under stress and I’m afraid it’s going to continue,” Wirth told CNBC’s Becky Quick. “We’re running out of time. Every day makes it worse.” Exxon’s CEO Darren Woods argued that Hormuz must reopen as global demand for Middle Eastern oil, halted by conflict, is critical. “It’s the world’s main supply artery fueling economic growth,” Woods said on CNBC’s ‘Squawk Box.’ “Eventually, barrels will flow, but the question is how long until resolution.” Exxon and Chevron’s second-quarter profits rose with oil prices. Additional attacks on tankers in the Black Sea this week, linked to Ukraine’s strikes on Russian energy infrastructure, threaten Kazakh oil exports via the Capsian pipeline. Dan Yergin, S&P Global’s vice chairman, called the Persian Gulf, Red Sea, Mediterranean, Black Sea, and Caspian Sea ‘arenas for oil war.’ “The main issue is products,” Yergin told CNBC’s ‘Squawk Box.'” S&P estimates 6 million barrels daily of refining capacity are offline. Russia halted diesel exports due to Ukraine’s attacks on refineries, while Middle Eastern product exports are also disrupted by Hormuz tensions. “This impacts the entire economy,” Yergin said. “Brazilian farmers face higher diesel prices, driving the current scramble.”