The rapid growth of the Indonesian economy has created opportunities for foreign investment, recorded at Rp35.4 trillion or US$3.8 billion across 424 projects, according to BKPM, the government’s investment agency. The Chairman of BKPM, Gita Wirjawan, will be speaking at the Private Equity Indonesia Summit 2010 on the 12th of October in Jakarta, an event organized by IQPC Worldwide, a global research and conference organizer.
The attraction of investment, according to one speaker at the summit Sandiaga S. Uno, Founding Partner of Saratoga Capital, comes from the fact that Indonesia is experiencing a demographic dividend phase. “The productive-age population bulges while the dependency ratio declines. This is a golden period for the country’s economic development and will ensure growth in domestic demand”. Socrates Rudy, director of PT ATPK Resources Tbk, further compared Indonesia’s offer in comparison to China and India: “Indonesia has a lower price-earnings ratio in most sectors compared to Shanghai and Mumbai, which definitely offers a better investment exit strategy for private equity.”
When asked about hot areas of investments, a number of analysts have recommended M&A deals in the retail and pharmaceutical sectors to be the most promising, though core interests remain in energy, mining, infrastructure and communications.
To foreign investors entering the Indonesian market, Sandiaga observed that “larger private equity firms are generally more interested in large-sized deals and less attracted by mid-sized ones. These deals play right into the hands of the middle-market players who are mostly domestic.” He further suggested private equity investors need to be “close to the ground to understand market trends and spot rising stars in the consumer goods sector” in order to take full advantage of the investment opportunities Indonesia has to offer.
Apart from Sandiaga S. Uno and Socrates Rudy, more than 50 private equity LPs and GPs will be in Jakarta on the 12th and 13th of October at the Private Equity Indonesia Summit 2010 to discuss the investment opportunities in this market.
The attraction of investment, according to one speaker at the summit Sandiaga S. Uno, Founding Partner of Saratoga Capital, comes from the fact that Indonesia is experiencing a demographic dividend phase. “The productive-age population bulges while the dependency ratio declines. This is a golden period for the country’s economic development and will ensure growth in domestic demand”. Socrates Rudy, director of PT ATPK Resources Tbk, further compared Indonesia’s offer in comparison to China and India: “Indonesia has a lower price-earnings ratio in most sectors compared to Shanghai and Mumbai, which definitely offers a better investment exit strategy for private equity.”
When asked about hot areas of investments, a number of analysts have recommended M&A deals in the retail and pharmaceutical sectors to be the most promising, though core interests remain in energy, mining, infrastructure and communications.
To foreign investors entering the Indonesian market, Sandiaga observed that “larger private equity firms are generally more interested in large-sized deals and less attracted by mid-sized ones. These deals play right into the hands of the middle-market players who are mostly domestic.” He further suggested private equity investors need to be “close to the ground to understand market trends and spot rising stars in the consumer goods sector” in order to take full advantage of the investment opportunities Indonesia has to offer.
Apart from Sandiaga S. Uno and Socrates Rudy, more than 50 private equity LPs and GPs will be in Jakarta on the 12th and 13th of October at the Private Equity Indonesia Summit 2010 to discuss the investment opportunities in this market.
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| Source: http://www.financeindonesia.org/ |
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