INDONESIA Law and Practice Contributed by: Melissa Butarbutar, Ken Prasadtyo, Kevin Yehezkiel and Cindy Caroline, TnP Law Firm
1. Trends 1.1 M&A Market
1.2 Key Trends In 2024, various new industries entered the M&A market, despite technology companies and renewable energy companies remaining the key players. The year started off with the merger of two leading e-commerce platforms in Indone - sia, Tokopedia and TikTok Shop, as well as the acquisition of oil and gas company PT Petrosea Tbk by the group company PT Petrindo Jaya Kreasi Tbk, the major player in the oil and gas sector in Indonesia. The closing of these deals in February 2024 received positive feedback from the public, establishing them as the ground - breakers for the market dynamics throughout the year to come. Mid-2024, PT Jasa Marga (Persero) Tbk successfully secured USD1 bil - lion equity financing for the development of the 1,184 km Trans-Java Toll Road. The year ended with a notable transaction in the hospitality sec - tor, namely the acquisition of Bakmi GM, one of Indonesia’s prominent restaurant chains, by conglomerate group Djarum Group. From a regulatory standpoint, there have been no significant changes following the outcome of the 2024 presidential election. As the invest - ment climate has remained conducive over the past few years, the new government appears to have decided to maintain and continue promot - ing the investment policies implemented since the enactment of Law No. 11 of 2020 on Job Creation, as further enacted by Law No. 6 of 2023 ( “Job Creation Law” ). 1.3 Key Industries Technology, Media and Telecommunications Following the significant development of the dig - ital sector in Indonesia, which has been one of the most highly promoted industries, deals within the technology, media and telecommunications (TMT) sector have attracted public attention. In 2024, two leading e-commerce platforms, Tik -
The outlook for Indonesia’s M&A market remained stable in 2024. As the public slowly recovered from the COVID-19 pandemic, fol - lowed by the dynamics of the Indonesia’s politi - cal situation during the election, the demand for M&A transactions in the market remained consistent. We experienced some deals being pressed to be completed before the election outcome, while others were postponed until after the election. The Business Competition Supervi - sory Commission ( Komisi Pengawas Persaingan Usaha or KPPU) recorded a slowdown in M&A deals compared to 2023, from 323 merger filing notifications to 155 merger filing notifications. This slowdown was attributed to the introduction of a new merger filing policy (as further detailed below), mixed sentiment in the global markets, and public anticipation of policy shifts following the presidential election last year. Nonetheless, the public still showed optimism towards Indonesia’s M&A climate, and the diver - sity of the industries entering the M&A market compared to the previous year, such as digital technology, renewable energy, media and tel - ecommunications, healthcare and hospitality, may be noted. The addition of many new indus - tries to the M&A market has significantly contrib - uted to a more diverse M&A climate in Indonesia. Compared to the previous year, Indonesia’s M&A market also showed a broader range of play - ers of different sizes joining the trend, from con - glomerate groups to micro, small and medium- sized enterprises (MSMEs). As the deals spread across various unexpected industries, this offers promising market conditions for the upcoming years.
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