The seventh edition of DealStreetAsia’s Indonesia PE-VC Summit unfolded amid MSCI’s warnings of a potential downgrade of the country to frontier market status—fears that had already wiped out more than $80 billion off the market in two days.
The anxiety was palpable among the 625 attendees and 39 speakers gathered for the event at Jakarta’s St. Regis hotel on Jan 29.
Sovereign wealth fund Danantara’s Chief Investment Officer Pandu Sjahrir, however, shrugged off the recent market sell-off as a healthy “cold plunge”—a necessary stress test rather than a structural setback, which may seem uncomfortable now but will be ultimately constructive.
Speaking at a keynote address—’How Danantara plans to catalyse private capital for Indonesia’s next growth cycle’—at the summit, Sjahrir said the episode underscores why institutions like Danantara exist, not as market stabilisers of last resort, but as long-term partners focused on building investable platforms.
“We have a lot of things to fix, because we’ve got to make money for all investors. We failed the majority of public market investors. And our job then is how can success beget success,” said Sjahrir.
He outlined the firm’s strategy across public and private markets, including plans to invest selectively in fund managers, while emphasising that deeper markets, stronger governance, and investor trust are critical to making Indonesia a core allocation for global capital.
MSCI’s concerns over Indonesia’s lack of transparency and investability were followed by Goldman Sachs cutting its rating on Indonesian equities on Thursday (Jan. 29), saying a potential outflow in billions of dollars could be on the cards. The CEO of the Indonesian Stock Exchange (IDX) resigned to take responsibility for the market conditions.
Addressing concerns over the lack of transparency, Saptono Adi Junarso, Senior Advisor to Listing Directorate at the Indonesia Stock Exchange (IDX), said: “We’ve already had initiatives that would give more predictable conditions to investors, such as the Liquidity Provider strategy launched in May 2025.”
The IDX is still optimistic that there will be more PE-backed listings on the bourse, Adi Junarso said at a panel discussion titled ‘Building private equity exit stack in Indonesia & SEA’.
Co-founder and managing partner of Asia Partners, Nick Nash, too, expressed optimism over the future of Southeast Asia. “Despite the 8% drop in the index, we are lucky to have some of the best longer-term demographics in Southeast Asia.”
Nash said the region is entering a rare economic window in which growth continues to outpace inflation and demographics remain supportive, potentially improving the region’s ability to build globally competitive companies.
He was also quick to point out that Southeast Asia remains underrepresented in public markets, with only two next-generation Internet companies among the region’s 35 largest by market capitalisation—far fewer than in the US and parts of North Asia. He said having fewer, bigger companies is the way forward.
To drive home the message, Nash presented a watermelon on stage during his talk titled ‘From grapes to watermelons: Why scale is the north star for 2026. “Let’s make wine out of [a few] watermelons, not [hundreds of] grapes… we have to roll up companies,” he said.
All eyes on profitability
Speaking of giant tech companies, top executives from IDX-listed GoTo and Nasdaq-listed Grab also spoke at the Summit.
In a fireside chat titled ‘How GoTo uses its ecosystem to create long-term, resilient customer value & investor confidence’, the tech giant’s CEO Hans Patuwo underscored the company’s shift from broad-based expansion towards tighter execution and profitability.
In his first public conversation since taking over as chief of GoTo, Patuwo stressed that growth would no longer rely on heavy subsidies, but on operational efficiency, data-driven personalisation, and selective investment in core capabilities.
In his first public conversation since taking over as chief of GoTo, Hans Patuwo stressed that growth would no longer rely on heavy subsidies.
Patuwo highlighted fintech as an increasingly important contributor to the company’s growth. “The key to scaling the fintech business comes down to building core capabilities. First is how you move money or value seamlessly. The second is what capabilities do we have to assess and price risks,” he said.
GoTo’s rival Grab, too, has entered an era of sustained profitability after years of cost cuts and a pivot away from “growth at all costs”. And along with that, it has built up its cash cushion—$7 billion as of the third quarter of 2025.
But CFO Peter Oey, in a fireside chat—Grab’s 2026 Playbook: The next growth engines & the future of mobility—stressed that the war chest won’t be deployed hastily. “We have $7 billion on the balance sheet. That’s a lot of cash. But we also have a very high bar when it comes to capital deployment. On the acquisitions and investments that we make, there is a certain internal rate of return that has to be generated from every single dollar we deploy,” he said. “We will deploy them at some point,” he added, “but very selectively.”
Profitability has not made Grab more aggressive. “I think conservative is in our DNA,” Oey said. The company continues to pursue new growth bets, including groceries and financial services.
Beyond Grab and GoTo, fintech operators across Southeast Asia are being forced to rethink how they make money beyond payments as digital infrastructure matures. Transaction fees alone—once the default revenue engine—are no longer sufficient as margins compress and infrastructure costs rise, said speakers at a panel titled ‘From rails to risk: The fintech profit stack in Indonesia & SEA’.
Indonesia’s long approval timelines, strict licensing requirements, and proactive regulators have raised barriers to entry but also rewarded players willing to commit capital, invest locally, and engage transparently. “Indonesia is probably one of the most complex markets in terms of approvals and licensing. Our experience in Indonesia shaped how we approached expansion into markets like the Philippines,” said Mikiko Steven, Managing Director of Xendit, at the panel.
Stabilisation not recovery
Alongside the Summit, DealStreetAsia launched a report, jointly produced with and Kickstart Ventures, on startup fundraising trends in Southeast Asia. Executives from Kickstart Ventures, Monk’s Hill Ventures, ACV Capital, Vertex Ventures SEA & India, and BNI Ventures discussed the findings of the Southeast Asia Startup Funding Report: 2025.
Startup funding in Southeast Asia stabilised in the second half of 2025 after hitting a cyclical low earlier in the year. Yet, the recovery remains uneven and is market-specific. Singapore accounted for more than 60% of the regional deal count in 2025. Indonesia, by contrast, showed little semester-on-semester movement in deal volumes. The data point to a market that has stabilised but has yet to show signs of renewed momentum.
“The deal flow in the funnel here [Indonesia] is drastically lower than what it was before. We see better flow in Vietnam, Singapore, and even more recently, in Malaysia, due to the government support on semiconductors,” said Gary P Khoeng, Partner, Vertex Ventures Southeast Asia & India, at the panel titled ‘Frost to Fire: Can Indonesia and SEA reignite the startup boom?’.
“When we look at Indonesia, not just the economic momentum, but execution is priced in. It’s selective underwriting and factoring risks in entry valuations. We’ve also seen multiple exit routes in the market than before,” said Pradita Astarina, Venture Partner, Strategic Year Holdings, at the panel.
In another discussion titled ‘Executing transformation at national scale: Where private capital and strategic partners plug in’, speakers explored how large-scale transformation in Indonesia hinges on disciplined execution, patient capital, and aligned partnerships between incumbents and investors.
Bluebird Group’s Noni Purnomo said that long-term relevance starts with profitability and governance, arguing that transformation must be financially sustainable before it can scale. She highlighted how partnerships—from ride-hailing platforms to public transport operators—have enabled Bluebird to modernise while supporting drivers and communities.
Thematic discussions: climate, consumer, and healthcare sectors
In a panel discussion on climate action—’How emerging markets are driving climate action’—speakers said nations are developing their energy independence because of geopolitical risks. Hence, the need for capital is increasing. But the supply of capital is declining. What’s more important to note is that energy security might periodically override decarbonisation requirements globally.
Particularly for Indonesia, investors are still facing excessive valuations, plus the need to find capable teams in energy and climate solutions. “We see interesting mid-market renewable platforms, with existing operating assets and clear visibility for additional capacity. We need capital continuum, which is also needed for exits,” says Winston Mandrawa. Managing Director & Head of ASEAN at Affirma Capital.
In a panel on healthcare—’Private capital’s next bets in SEA & Indonesia healthcare’—speakers said Southeast Asia is likely at the cusp of increased activity over the next few years. Hospital consolidation is beginning to take shape, with pipelines picking up in Indonesia and Vietnam. Specialty care is also expected to gain momentum. In addition to eyecare and fertility, areas such as dialysis, cath labs, and day-care surgery centres are likely to see growth. From an investor’s perspective, Southeast Asia, followed by India and China, currently form the pecking order for capital allocation.
“I’m particularly drawn to specialty platforms as an investment opportunity. Even today, Indonesia compares quite favourably with markets like China, especially when it comes to the development and potential of specialty platforms,” said Raymond Rudianto, Managing Director & Head of Indonesia Investments at Quadria Capital.
Meanwhile, Indonesia’s consumer and new retail sector is entering a more selective and execution-driven phase, shaped by slower household spending, rising price sensitivity, and intensifying competition.
Despite these pressures, panellists at ‘Mapping the future of new retail and consumer tech in Indonesia’, agreed that Indonesia remains one of Southeast Asia’s most resilient consumer markets, supported by its large population and structurally strong domestic demand.
Consumer behaviour is also evolving. Post-pandemic spending has shifted from product-led consumption towards experiences, benefitting sectors such as entertainment, media, beauty and lifestyle. Trust, branding and product quality—rather than low prices alone—are increasingly critical in driving retention, especially in categories like beauty and personal care.
“Running a consumer business today is highly technological—it requires systems, data, and algorithms, much like managing a tech company.”
“Running a consumer business today is highly technological—it requires systems, data, and algorithms, much like managing a tech company,” said Achmad Zaky, Founding Partner of Init-6.
Overall, speakers agreed that deeper markets, stronger governance, and investor trust are critical to making Indonesia a core allocation for global capital. Trust, alignment, and fundamentals—not hype—determine whether transformation at a national scale can endure.
