Around Asia Pacific - Indonesia
Indonesia remains a jurisdiction of considerable interest for private equity investors and the growing middle class means that the hot sectors for investment are those that complement such a demographic, including financial services/insurance, consumer goods and healthcare.
Private equity investment is now more commonplace in Indonesia and can be seen as an opportunity to deliver growth and value to promoters handing on to the next generation.
The global downturn in commodity prices and general global economic slowdown has started to impact industries dependent on natural resources across the global supply chain which will provide opportunities for private equity investment in the coming months. Valuation and due diligence will remain key drivers for any investment, together with a feeling of resource-rationalism has led to decreased interest in pure natural resource plays.
Indonesia has seen an uptick in interest in technology start-ups and incubators, and it remains to be seen how this will develop in an evolving regulatory environment.