Equity dealmaking in Indonesia has been decelerating for 11 quarters on the trot as of the fourth quarter (Q4) of 2024, marking a prolonged downturn in the country’s venture capital and private equity setting. According to data from the recent DealStreetAsia DATA VANTAGE report Mapping SEA & Indonesia’s 2024 Journey, Indonesian startups recorded only 13 deals in Q4 2024—the lowest quarterly deal volume in over six years. They raised a combined $59.2 million, the second lowest in at least six years. The full-year deal volume in 2024 stood at 85 equity funding rounds, down 34% from the previous year. Total deal value, meanwhile, fell by 66% year-on-year to $437.8 million. A pre-summit networking event, held in connection with the Indonesia PE-VC Summit 2025 and sponsored by Donnelley Financial Solutions (DFIN), featured an engaging panel discussion on the current investment climate in Indonesia. DFIN, a leading provider of innovative software- and technology-enabled financial regulatory and compliance solutions, emphasized the importance of structured financial frameworks in addressing the funding gap. The event, held in Jakarta on Jan. 15 and moderated by Joji Thomas Phillip, Founder and Editor-in-Chief of DealStreetAsia, was titled ‘Ups, Downs & Resets: A Decade of PE-VC Investing in Indonesia’ and featured Pandu Sjahrir, Managing Partner of Indies Capital Partners, and Achmad Zaky, Founding Partner of Init-6. Over 30 minutes, the panelists explored the dynamic shifts in Indonesia’s startup and investment ecosystem over the past decade. Notably, 2024 also marks ten years since DealStreetAsia started covering the PE-VC setting in Southeast Asia, making it an opportune moment to reflect on the successes and setbacks of the past decade while anticipating the future of Indonesia’s dealmaking and fundraising ecosystem. “As we celebrate this significant juncture in the evolution of the PE-VC ecosystem, we recognise the cooperation between our mission and the needs of Indonesia’s dynamic setting,” said Margaret Low, Senior Director of Global Capital Markets at DFIN. “Our sponsorship of this event reflects our commitment to supporting the dealmaking communities, empowering dealmakers to accelerate processes and seize new opportunities. Whether it’s through IPOs, M&As, or other corporate actions, we strive to provide the software and expert support necessary for our clients to handle an ever-evolving market. We look forward to continuing our partnership with Indonesia’s startup and investment ecosystem, ensuring our clients are future-ready in this competitive environment.” The panel discussion was also attended by top leaders and key decision-makers in the Southeast Asian investment and startup setting.
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Reflecting on a decade of transformation in Indonesia’s startup setting, Sjahrir highlighted the significance of celebrating entrepreneurial successes, noting that the ecosystem saw remarkable growth between 2012 and 2015, fueled by increasing investor interest and a supportive infrastructure. “[Achmad] Zaky has successfully transitioned into his second act with Init-6, focusing on venture capital and education,” said Sjahrir, who also serves as COO of Daya Anagata Nusantara Investment Management Agency (BPI Danantara); Founding Partner, AC Ventures; and Vice President Director, TBS Energi Utama. Amidst the negative news in the startup ecosystem and concerns about an impending downturn, Sjahrir emphasized that downturns are an essential part of the cycle, providing an opportunity for investors to identify and invest in the next wave of promising ventures. Achmad Zaky, drawing from his experience as a co-founder of Bukalapak, stressed the importance of thorough checks and stricter vetting, acknowledging past lapses in caution. He expressed concern over Indonesia’s declining position in the ecosystem, noting that the country “used to be number one. But now, Indonesia is no longer number one.” He called for improvements, urging, “We need to be aware and work hard on building the right companies with strong models.”
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Examining recent IPOs and their underwhelming performance, the panel discussed the need for alternative exit strategies. Sjahrir reflected on the performance of notable IPOs, such as Bukalapak, and the challenges in the public markets. “Public market liquidity in Southeast Asia remains a concern. Solid exit options, including mergers and acquisitions, are key for sustaining investor confidence and enabling growth,” he said. Zaky echoed this sentiment, adding that the M&A market is also relatively underdeveloped, with limited transaction volume. “The lack of public market liquidity impacts M&A activity. Many companies are acquired by global firms, as local markets cannot support large-scale transactions. Investors must set realistic entry and exit expectations to align with market conditions,” Zaky explained. This approach, he argued, could facilitate successful acquisitions and help overcome the valuation barrier. He suggested that acquisition expectations should be more modest, allowing for more realistic entry valuations, enabling companies to overcome the valuation barrier and facilitate successful acquisitions.
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Meanwhile, the discussion on credit and debt markets showed the complexities facing entrepreneurs and investors. Sjahrir highlighted the challenges in finding individuals well-trained in debt and credit markets, noting that “finding individuals who are well-trained in debt and credit markets is incredibly challenging.” This difficulty has led many entrepreneurs to lean toward equity when presented with a venture opportunity, as Sjahrir observed. He also acknowledged his role in a recent oversight where books were co-represented, emphasizing the lack of due diligence and transparency in the process. Moving forward, he committed to a more active approach to managing businesses, with a focus on efficiency and responsibility toward legal partners and customers. “The way we conduct business will be very different from how we did it in the past few years,” Sjahrir added. Zaky, too, stressed the importance of thorough checks and stricter vetting, acknowledging past lapses in caution. He expressed concern over Indonesia’s declining position in the ecosystem and called for a renewed focus on building strong, sustainable companies. “We need to be aware and work hard on building the right companies with strong models,” he reiterated.
