Thursday, 27 April 2017
Registration and refreshments
The private equity landscape in 2017
Investment activity has slowed in recent years in South-east Asia, largely due to a combination of declining commodity prices, currency volatility, political uncertainty and economic headwinds. However, with a population of 250m and private consumption a large contributor to growth, Indonesia is nicely poised to reignite its potential. For private
market investors, macroeconomic and political changes in 2016 mean that the next stage for the industry in the region will be an intriguing one as GPs look to extend their footprint in the region.
- What is the outlook for investment in the region and how much impact will the Trump presidency and Brexit have?
- How do the major markets in South-east Asia compare, and what types of deals are regional investors looking for in each geography?
- Where does the reform agenda stand, and what is the impact of the tax amnesty?
- Which sectors provide the best opportunity because of the lifting of FDI restrictions?
M&A and cross-border activity: Indonesia roadmap
Cross-border deals, both inbound and outbound, continue to be on the rise. Local companies finding success domestically are looking for growth opportunities in the region as they look to expand internationally and spread their business risk across a number of geographies and economies. On the flip side, inbound investors are attracted by the solid macro and consumer landscape and opportunity to utilise their expertise and connections to propel local businesses into bigger and better entities. A panel of experts will discuss the following topics and how Indonesia can prosper:
- What is the current level of M&A activity, and from where are most transactions originating?
- What are the dynamics in the marketplace, and what is driving cross-border deals?
- What are successful examples of Indonesian companies expanding internationally?
- Which overseas markets are most attractive for outward M&A, and why?
- How can GPs help Indonesian companies expand overseas?
Networking coffee break
Healthcare in the spotlight
The popularity of healthcare assets among private equity investors across Asia shows no sign of waning-the combination of rising demand for quality products and services in emerging markets and low levels of supply make sure of that. Indonesia is no exception, and a few significant deals by the major players are increasing focus on the sector. Our
panel will offer insights into navigating the healthcare space and how GPs can differentiate themselves in terms of strategy and value creation.
- What is the state of play in the healthcare sector in Indonesia, in terms of demand versus supply?
- What lessons can be learned from investments in the sector across Asia?
- How do GPs get comfortable with often asset-heavy healthcare services?
- What impact is technology having on healthcare business models?
- Are healthcare-focused GPs too specialised for LPs?
Fireside chat: Is the fintech revolution sustainable?
With financial technology (fintech) on the rise in Asia, private investors and financial institutions alike are keen to explore the opportunity and understand its scope. VCs see a big opportunity, and banks need to keep an edge over non-traditional players looking to disrupt the industry. In Indonesia the sector is tipped for massive growth, and the role of fintech in enabling financial inclusion given the significant unbanked population cannot be underestimated. The government and the private sector are actively supporting the industry and enhancing the ecosystem to stay on top of the regulatory and technology changes.
- What is the current landscape for fintech?
- Is collaboration among the stakeholders a key to developing a sustainable ecosystem?
- How important is it to strike the right balance between regulation, funding, technology and culture?
- What does the future hold for the sector?
Vantage point: The next consumer battleground
After China and India, Indonesia is next on the investment rankings when it comes to start-ups in Asia. The government is obviously realising the importance of the digital economy; it has announced various initiatives to capitalise on the sector and help the country go forward. Corporate VC activity is also on the rise as they try to capitalise on the consumer growth in SEA through a financial return and/or obtain a deeper understanding of new markets and technologies. Our esteemed panel will discuss the following topics:
- What is behind the increased start-up funding, and can this funding be sustained?
- Which government and industry initiatives are likely to bring the best results?
- What are the current trends in corporate venturing and how they fit in the ecosystem?
- Which sectors are attracting the most funding?
- How could Indonesian start-ups go regional?
Networking coffee break
Infrastructure development and funding: The private investor view
Infrastructure investors search the globe to find and gain access to the most attractive deals, at a price that can deliver stellar returns. Depending on risk appetite and local reach, emerging markets present an opportunity if you can navigate the political, regulatory and governance related challenges. With the infrastructure investment needs estimated to be in the hundreds of billions in the short to medium term, Indonesia is one of the leading destinations in the region when it comes to opportunities for investors. The challenges are abundant too, but the serious push by the government to reduce red tape and increase private investment into the various projects is providing hope for foreign investors. In this session, a panel of international and domestic infrastructure investors will discuss the opportunities in Indonesia and beyond.
- Where Indonesia fits into the global infrastructure investment portfolio?
- How does it compare to other emerging markets?
- What new regulatory and policy developments are in place?
- How do institutional investors view the opportunity in comparison with the global infrastructure market?
- What is the role of the development agencies and banks in closing the funding gap?
Indonesian LP allocation: One for the future?
Private equity in Indonesia is a nascent industry. Institutional investors may be hesitant to allocate capital, but now could be the time to put money to work. The predicted GDP growth over the next 20 to 30 years puts Indonesia on a consistent growth trajectory, and given the demographics and local consumer consumption, it will play an important counterbalance to any turmoil in China and India. However, it is still very difficult for LPs.
With the exception of a few core groups, track records are not as long as in China or India, so part of unlocking that lack of capital provision is encouraging participation by local institutions and government incentives.
- How do LPs view Indonesia as an investment destination?
- Have returns and portfolio performance to date been as expected?
- Can GPs deliver returns as generalists in Indonesia, or do they need to target specific sectors?
- What co-investment opportunities exist in Indonesia?
- How do LPs view Indonesia in the long term?
Close of conference day and cocktail reception