Market Insights Financial Capital Raising

Traditional Capital Raising - Indonesia

Indonesia

The country in Indonesia is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$1.2bn by 2024.
Within this market, Venture Capital is set to lead with a projected volume of US$1.0bn in 2024.
When compared globally, the United States will generate the most Capital Raised, with US$296,400.0m expected in 2024.
Indonesia's Traditional Capital Raising market sees an uptick in demand for Sukuk bonds, reflecting the country's preference for Sharia-compliant financing options.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Currency

Analyst Opinion

The Traditional Capital Raising market in Indonesia has been experiencing significant growth in recent years.

Customer preferences: Indonesian investors have traditionally favored traditional capital raising methods such as initial public offerings (IPOs) and debt offerings. This preference can be attributed to the perceived stability and reliability of these traditional methods, as well as the familiarity and ease of understanding associated with them. Additionally, many Indonesian investors prefer to invest in local companies, as they are more familiar with the market and have a better understanding of the risks and opportunities involved.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Indonesia is the increasing popularity of private equity and venture capital funding. This can be attributed to the growing number of startups and high-growth companies in the country, as well as the increasing interest from local and international investors in these sectors. Private equity and venture capital funding provide these companies with the necessary capital to fuel their growth and expansion, and offer investors the potential for high returns. Another trend in the market is the rise of crowdfunding platforms. These platforms allow individuals to invest in startups and small businesses, providing them with access to investment opportunities that were previously only available to institutional investors. This trend has been driven by the increasing internet penetration and the growing popularity of online platforms in Indonesia.

Local special circumstances: Indonesia is the largest economy in Southeast Asia and has a rapidly growing middle class. This has led to an increase in disposable income and a greater appetite for investment opportunities. Additionally, the government has been actively promoting entrepreneurship and innovation, which has resulted in a thriving startup ecosystem in the country. These factors have contributed to the growth of the Traditional Capital Raising market in Indonesia.

Underlying macroeconomic factors: The strong economic growth in Indonesia has created a favorable environment for capital raising activities. The country has experienced stable inflation rates and a growing GDP, which has increased investor confidence and encouraged capital inflows. Additionally, the government has implemented various reforms to improve the business environment and attract foreign investments, which has further stimulated the Traditional Capital Raising market. In conclusion, the Traditional Capital Raising market in Indonesia is developing due to customer preferences for familiar and reliable investment methods, as well as the increasing interest in startups and high-growth companies. The rise of private equity, venture capital, and crowdfunding platforms reflects the changing investment landscape in the country. The local special circumstances, such as the growing middle class and government support for entrepreneurship, have also contributed to the growth of the market. Lastly, the underlying macroeconomic factors, including stable inflation rates and a growing GDP, have created a favorable environment for capital raising activities in Indonesia.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us 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 relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.