Private equity cash focuses on Indonesia

Rising investor interest in Indonesia in the short run is driving up valuations for private equity investors.

Private equity commitments to deals in Indonesia have risen above $3 billion, with perhaps another $8 billion on the way, leading to a short-term hike in valuations.

Consumer including banking, infrastructure and resources remain the traditional areas for PE money in the country. Valuations in the consumer space have become heated, with local food and beverage companies trading at higher multiples than multinationals such as Coca-Cola.

The question for private equity general partners GPs is whether enough opportunities will arise during the next few years as this new cash gets deployed to meet investor expectations.

According to Preqin, a research and consultancy firm,...

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