Given the new sectors that the pandemic has thrown open for investing, Indonesian private equity (PE) firms are seeking out companies that will be “champions” in the medium- to long-term, according to Indonesian PE executives at the Asia PE-VC Summit 2020, organised by DealStreetAsia in November.
At Northstar Capital Group, for instance, there has been a strong growth in portfolio companies, in particular tech-enabled companies such as ride-hailing app Gojek, edtech platform Zenius, and aquaculture startup eFishery.
“We see robust growth in Halodoc, in which Go-Ventures has also invested, as well as Zenius. Yet, there are also exciting opportunities in non-digital companies,” said Northstar Capital Group’s co-chief investment officer Sunata Tjiterosampurno. He was speaking at a panel titled Indonesia: Will PE Chase Pandemic Proof Bets in SE Asia’s Largest Market at the summit.
Co-panelist and Creador managing partner Stefanus Hadiwidjaja said he sees opportunities emerging in data centres, data analytics, payments, and logistics sectors in Indonesia.
While e-commerce has received a shot in the arm from the pandemic, consumer priorities have shifted: “In general… fashion and accessories become the top priority, followed by personal care, home, and office equipment, and the last thing was electronics. Now, we see that food and beverages grow almost double in the pandemic era. Personal care and health also has gone up, followed by the home and office equipment too,” said Bukalapak’s CEO Rachmat Kaimuddin.
Watch the video of their chat here:
