The past decade has marked a crucial phase of maturation for Indonesia’s startup ecosystem. While the early years of startup development were largely centered on user growth and funding, the focus has now shifted toward a more fundamental question: how and when can liquidity actually be realized?

Within this context, the two most measurable and well-documented exit routes are initial public offerings (IPOs) and mergers and acquisitions (M&A). Based on data compiled by Tech in Asia from 2016 to 2025, the two have followed different patterns in terms of annual cycles, transaction sizes, and sectoral distribution.

The trend of technology company IPOs on the Indonesia Stock Exchange (IDX) reveals one major anomaly over the past decade: an exceptional surge in capital raised in 2021. 

The surge in IPO value during 2021–2022 was not driven solely by an increase in the number of companies going public, but also by changes in the composition and scale of issuers. During this period, the average amount raised per company increased sharply compared with previous years, driven by the listings of unicorn technology companies that had reached advanced stages of growth and achieved significant valuations.

The listings of companies such as Bukalapak in 2021 and PT GoTo Gojek Tokopedia Tbk in 2022 significantly increased both the aggregate amount of capital raised and the average IPO proceeds per issuer. The anomaly during this period is therefore better understood as the result of a concentration of exceptionally large transactions rather than simply a reflection of annual market cycles.

By contrast, the number of IPOs increased in 2023, but without any unicorn companies listing on the Indonesia Stock Exchange (IDX). This explains why listing activity was higher even though both aggregate proceeds and the average amount raised per issuer were significantly lower.

In addition, Indonesia’s capital market was in an expansionary phase between 2021 and 2023. High levels of global liquidity in the post-pandemic period, combined with investor interest in the technology sector, helped drive a wave of IPOs, including listings by large companies. During this period, IDX listing regulations remained relatively stable, allowing companies that were sufficiently prepared in terms of business fundamentals and governance to go public under the prevailing requirements.

By 2024, however, the policy direction had begun to shift. IDX stated that it would tighten the selection process for prospective issuers, particularly in relation to the quality of financial performance, corporate governance, and the adequacy of shares genuinely available to the public as free float. The move followed price volatility in several newly listed stocks and growing attention to investor protection, as communicated by IDX management in several official reports throughout 2024.

This change in approach has made the IPO landscape after 2023 more selective. While the market had previously been driven by expansion and strong investor interest, the subsequent period placed greater emphasis on the quality and fundamental readiness of companies before entering the public market.

Unlike IPOs, which in certain periods were driven by the presence of large issuers, M&A activity over the past decade has tended to be more evenly distributed from year to year. In some periods, the number of transactions increased without a comparable rise in transaction value. In others, total transaction value was driven by one or two large deals. 

By sector, M&A transactions were most frequently recorded in the financial and consumer sectors compared with other areas such as digital infrastructure technology, education, and agriculture. The data shows that these two sectors consistently accounted for a significant share of total deals, with several transactions also recording relatively large values during the observed period.

The financial sector tends to be particularly active in M&A because companies in the industry often use acquisitions to increase scale and add new capabilities, especially amid competition and technological change. McKinsey notes that the resurgence of M&A in the global financial services sector has largely been driven by the need to strengthen scale and capabilities, with transactions becoming more strategic and higher in value.

In the consumer sector, PwC notes that M&A activity has continued despite economic conditions that have yet to fully stabilize. Transaction values have remained strong as companies use acquisitions to expand their brand or product portfolios and adapt to changes in consumer behavior.

IPOs and M&A, however, have fundamentally different characteristics. An IPO requires a high level of governance readiness and ongoing disclosure, and is heavily influenced by capital market conditions. The company remains an independent entity with public shareholders.

M&A, by contrast, offers greater structural flexibility and often results in a change of control or integration into the acquiring entity. Liquidity for investors is generally realized once the transaction is completed.

Why Focus on IPOs and M&A?

In theory, startup exits are not limited to IPOs and M&A. Secondary sales, share buybacks, and management buyouts are also possible. However, in the context of analyzing a national startup ecosystem, IPOs and M&A are used because:

• Both are among the most transparent and well-documented exit routes.
• Both reflect structural changes in ownership.
• Both serve as tangible indicators of capital circulation within the ecosystem.

In addition, IPOs and M&A generally involve transaction values that are widely disclosed, making comparisons across time periods and sectors more consistent. Available data from prospectuses, corporate disclosures, and regulatory reports provides a relatively standardized quantitative basis for historical analysis.

At the same time, both mechanisms mark important transition points in a company’s life cycle, whether from a privately held company to a publicly listed one or from existing ownership to a new strategic entity. For this reason, IPOs and M&A are frequently used in ecosystem studies as indicators of corporate maturity and as reflections of capital-flow dynamics that can be measured at an aggregate level.