$US8m commitment to AC Ventures

Australia’s flagship impact investment fund Australian Development Investments (ADI) has announced a US$8 million anchor commitment to Indonesian venture capital firm AC Ventures’ Climate Strategy.

AC Ventures Climate Strategy will invest in sectors such as renewable energy, electric vehicles, energy efficiency, waste management and climate-smart agriculture, with the goal of significantly reducing CO2 emissions.

This is the first ADI investment through KINETIK – the Australia-Indonesia Climate, Renewable Energy and Infrastructure Partnership.

There is a growing global demand for impact investing, which generates positive environmental and social outcomes alongside a financial return.

“The Australian Government’s anchor commitment will enable AC Ventures to identify invest in and support businesses that are at the forefront of the energy transition,” said Gita Kamath, Chargé d’affaires at the Australian Embassy Jakarta.

“ADI is committed to investing in funds that deliver both financial returns and measurable climate, gender, and development impacts.”

ADI’s anchor commitment of $US8 million is expected to attract additional investment from private sector institutions, accelerating the flow of capital into innovative technological solutions that combat climate change.

“This partnership is a testament to the growing recognition of the importance of climate-focused investments. Together, we can drive meaningful change and contribute to a more sustainable future,” said Helen Wong, Managing Partner at AC Ventures. 

“As we work toward a net-zero future, AC Ventures remains committed to empowering businesses that are tackling the most pressing environmental challenges.”

Ms Wong said the work of AC Ventures’ portfolio companies had already created more than 30,000 direct jobs.

“Additionally, we are proud that 40 per cent of the companies we back are led or co-led by women, fostering greater gender equity across Southeast Asia.”

The announcement of the $8 anchor commitment coincided with an Australian investor delegation to Indonesia including long-term investors Macquarie Group, ANZ Bank and Aspen Medical plus investors in healthcare, logistics, infrastructure, energy, mining and resources.

Australian companies have invested more than US$4.3 billion in Indonesia over the last decade and are now investing more US$500 million per year.

Greater investment in Indonesia’s small and medium enterprises through ADI will help Indonesia reach its economic growth target and draw Australian foundation and family office impact investors into the region.

“We want to see Australian investors recognising and capitalising on the opportunities Indonesia presents and there are many different entry points to the market, including impact-focused venture funds like AC Ventures,” said delegation leader Jennifer Westacott.