Corporate Finance - Indonesia

Indonesia

In 2024, the projected revenue in the Corporate Finance market market in Indonesia is expected to reach US$3.46bn.
This forecast indicates a potential annual growth rate (CAGR 2024-2028) of -2.32%, leading to a projected total amount of US$3.15bn by 2028.
The average transaction value in the Corporate Finance market market in Indonesia is estimated to be US$62.89m in 2024.
When compared globally, it is noteworthy that the United States boasts the highest revenue, amounting to US$119.10bn in 2024.
Indonesia's corporate finance market is witnessing a surge in mergers and acquisitions, with local companies actively seeking strategic partnerships to expand their reach.

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Analyst Opinion

The Corporate Finance market in Indonesia is experiencing significant growth and development.

Customer preferences: Indonesian customers in the Corporate Finance market are increasingly seeking tailored financial solutions that meet their specific needs. They are showing a growing interest in diverse financial products and services, such as mergers and acquisitions, equity financing, and debt restructuring, to support their business growth and expansion strategies.

Trends in the market: One notable trend in the Indonesian Corporate Finance market is the increasing participation of foreign investors and multinational corporations. This trend is driven by Indonesia's strategic geographic location, large consumer market, and abundant natural resources, making it an attractive destination for foreign investments. Additionally, the rise of digitalization and technological advancements is shaping the market landscape, with more companies turning to fintech solutions for their financial needs.

Local special circumstances: Indonesia's unique regulatory environment and cultural nuances play a significant role in shaping the Corporate Finance market. The country's regulatory framework is constantly evolving to attract foreign investments while ensuring the stability and integrity of the financial sector. Moreover, the strong sense of community and relationship-based business culture in Indonesia influences the way financial transactions are conducted, emphasizing trust and personal connections.

Underlying macroeconomic factors: The robust economic growth, increasing middle-class population, and government initiatives to promote infrastructure development are key macroeconomic factors driving the growth of the Corporate Finance market in Indonesia. The country's stable political environment and efforts to improve ease of doing business further contribute to the favorable investment climate, attracting both domestic and international investors to engage in various financial activities.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.