Research Reveals Indonesia's PE/VC Investment Opportunity Index at 0.57
Head of Research at DealStreetAsia, Andi Haswidi, stated that the private equity (PE) and venture capital (VC) investment opportunity index for Indonesia currently stands at 0.57. The figure is based on the APAC (Asia-Pacific) PE/VC Opportunity Index presented in the study “Vistra Friction Index: Turning Friction into Capital Flow APAC PE/VC Edition 2026”. The index scale ranges from 0 to 1, with a higher value indicating greater investment opportunities.
During a media briefing on the research findings, Andi noted that with this index value, Indonesia falls into the lower-middle range alongside New Zealand (index value 0.59), Taiwan (0.58), the Philippines (0.57), and Thailand (0.55). He stated that the score does not signify a lack of investment opportunities in Indonesia, but rather reflects more restrained investor expectations.
He said investment opportunities in Indonesia remain promising as the largest market in Southeast Asia with increasing consumption, given its large population with a relatively younger age profile compared to other ASEAN member countries. However, middle-class growth is not as robust as before, and some reports even indicate a decline in the number of middle-class citizens. This encourages investors to focus their investments on specific sectors with high demand levels.
“Of course, there are significant opportunities in financial inclusion. Then, there is also a very large need for healthcare services, logistics, energy transition, and so on,” said Andi Haswidi.
Despite the substantial investment opportunities, good corporate governance remains a challenge and a focal point for investors. Founder & CEO of Bintang Capital Partners, Johan Rozali-Wathooth, stated that many mid-scale business operators in Indonesia, Malaysia, Vietnam, and the Philippines are capable of growing rapidly but still operate informally. He noted that such business entities typically have highly fragmented ownership structures and are still dominated by family relationships. This causes these business entities to tend to have non-standardised governance and financial reporting, making them not yet ready to operate institutionally.
However, he assessed that these shortcomings can become significant investment opportunities for partners (General Partners/GP), including private equity and venture capital firms, that possess strong operational capabilities. “In this case, it is not just about believing in the macro narrative, but more about believing in the micro plan to build a specific business,” said Johan Rozali-Wathooth.
The Vistra Friction Index: Turning Friction into Capital Flow APAC PE/VC Edition 2026 is the result of an exclusive survey of 105 fund managers and private capital managers with investment mandates across the Asia-Pacific, conducted in April 2026 by DealStreetAsia and Vistra Fund Solutions.