Japan's ASEAN envoy visits Living Lab Ventures to discuss regional investment strategy
Living Lab Ventures (LLV), a corporate venture capital and fund management platform, welcomed Yonetani Koji, Ambassador of Japan to ASEAN, to its facilities at the Biomedical Campus in BSD City, South Tangerang, Banten, on Sept. 21. The ambassador assumed his position in January 2024 and serves as Japan's representative to the regional bloc from Jakarta.
The visit centered on strengthening strategic dialogue regarding business opportunities, market expansion and innovation partnerships between Japan and ASEAN nations, particularly Indonesia. Discussions covered Japan–ASEAN economic relations, including cross-border investment, market access, startup expansion, corporate collaboration and opportunities to enhance connectivity between business and innovation ecosystems in Japan and Southeast Asia.
Japan Thematic Fund targets Southeast Asian markets
The meeting spotlighted the Japan Thematic Fund (JTF), established by LLV in partnership with Singapore-based Spiral Ventures, which has been active in Southeast Asian technology investments since 2019. The JTF aims to strengthen investment and business opportunities between Japan and Southeast Asia, with Indonesia serving as one of its key markets. Indonesia's position as the largest economy in Southeast Asia, with a GDP of approximately $1.4 trillion in 2023, makes it a strategic priority market for Japanese investment in the region.
Through JTF, Japanese startups and companies receive access extending beyond funding, including local market insights, strategic partners, business networks and go-to-market opportunities to navigate, enter and scale across ASEAN markets. Japan maintained its position as ASEAN's second-largest trading partner in 2023, with bilateral trade reaching approximately $243 billion, representing about 8.5 percent of ASEAN's total trade.
Building on decades of economic cooperation
Bayu Seto, partner at Living Lab Ventures, emphasized that Japan and Southeast Asia have built strong economic ties over several decades, providing an important foundation for further collaboration among startups, corporations, investors and businesses across both regions. The ASEAN-Japan Comprehensive Economic Partnership agreement, in force since 2008, has facilitated increased investment flows, with cumulative Japanese foreign direct investment to ASEAN exceeding $260 billion as of 2023.
As the ASEAN economy becomes increasingly integrated, we see the importance of strengthening the connection between international capital and growth opportunities across Southeast Asia. This not only serves as a catalyst for investment, but also creates broader opportunities for companies to access technology, innovation, expertise and markets across ASEAN.
Seto noted that LLV seeks to connect global capital, businesses and innovation with high-potential investment and growth opportunities in Southeast Asia. Corporate venture capital activity in Southeast Asia reached $8.3 billion in 2023, with Japanese corporations accounting for approximately 15 to 18 percent of total CVC investments in the region.
Strategic support beyond funding
For companies pursuing cross-border expansion, Seto explained that funding represents one part of the process. Understanding local market dynamics, finding appropriate partners, navigating the business environment and accessing regional networks remain vital to achieving sustainable growth.
Through this approach, LLV combines investment with strategic collaboration to help companies understand new markets and gain access to market-entry opportunities, partnerships and business development across the region. The platform's cross-border network connects companies with stakeholders and opportunities that can support their business expansion.
BSD City ecosystem enables market validation
Based in Indonesia, LLV operates from an integrated ecosystem in BSD City, a 6,000-hectare integrated township development in South Tangerang that has become a hub for technology and life sciences companies in Greater Jakarta. This ecosystem enables startups, corporations, investors and technology partners to interact and explore the application of innovative solutions in the Indonesian market.
The approach allows companies to gain firsthand insights into the market and develop solutions suited to local needs before moving on to validation, commercial partnerships and regional expansion. LLV is supported by Sinar Mas Group, one of Indonesia's largest conglomerates with operations spanning palm oil, pulp and paper, financial services, agribusiness, real estate, telecommunications and energy sectors.
During the visit, Seto presented a token of appreciation to Ambassador Yonetani, witnessed by Shingo Kobayashi, director and chairman office at Sinar Mas Group and advisor at Japan Thematic Fund, as a symbol of strengthening collaboration and relations between Japan and ASEAN in the fields of investment, business and innovation.
