Indonesia's M&A Transactions Remain Active Amid Global Decline

Jakarta — Global mid-market merger and acquisition (M&A) transaction activity was recorded as declining throughout 2025 amid escalating geopolitical tensions and uncertainty surrounding trade tariffs.

Despite this, a number of delayed transactions remain in the pipeline as investors choose to await more favourable market conditions.

BDO’s M&A Horizons 2026 report indicates that the decline in global mid-market activity last year was also influenced by limited strategic planning horizons amid economic uncertainty.

In the Asia-Pacific region, mid-market transactions have increasingly become the primary focus of private equity activity. Investors tend to prioritise smaller-scale transactions focused on operational improvement rather than large-scale acquisitions.

In Southeast Asia, private equity recorded investments of approximately $9.1 billion through 59 transactions throughout 2025. This figure reflects an increasingly selective investment environment.

Consumer growth and accelerating digital adoption adoption continue to be factors attracting both domestic and international investors. Additionally, sectoral dynamics such as consolidation in financial services and growing interest in technology, manufacturing, and sustainable energy sectors are driving transaction activity.

Marvin Camangeg, Partner (Advisory) at BDO Indonesia, believes that investors going forward will increasingly demand higher due diligence standards and more creative transaction structures.

Conventionally, the due diligence process in M&A transactions has focused heavily on verification of financial, tax and legal aspects of companies. This evaluation aims to ensure that historical information presented to investors is accurate and reliable.

However, in practice, investors assess not only past performance but also the company’s future potential.