Indonesia’s equity markets have moved through a long cycle of enthusiasm, recalibration and renewed discipline. After the early rush of tech listings, investors in 2025 took a cautious stance because of elections, shifting global conditions and concerns about fundamentals. This set the stage for a more thoughtful 2026 pipeline where quality sits at the centre.

While some founders may see this as a constraint, it is also an opportunity to prepare better and list with a stronger footing. Malaysia’s startup momentum in AI and data infrastructure adds another layer to the region’s story, creating cross-border possibilities for founders who plan ahead.

Why Indonesia’s digital economy is beyond Jakarta, the second-tier cities are becoming the next tech battleground

A quieter 2025 created space for fundamentals to lead again

Indonesia’s initial public offerings (IPO) activity slowed through 2025. The trend was clear in PwC’s mid-year review, which showed softer IPO counts and lower proceeds. Investor appetite became more selective as they prioritised clear profitability paths over aggressive growth. EY reported the same sentiment in its 2025 market outlook, noting that issuers with transparent financials received more consistent traction.

This change does not signal a closed market. It simply shows a maturing one. Investors want businesses that can communicate how they earn money and what their cost base will look like over the long term. 

They want strategies that can survive a slower global cycle. As a result, 2026 is emerging as a period where fewer companies may list, but overall quality is expected to be higher. 

How the IDX is reshaping expectations for 2026

The Indonesia Stock Exchange (IDX) has set its sights on about fifty listings in 2026, but it is not chasing volume for its own sake. The exchange is focusing on companies that act as stable “lighthouse” issuers. These are businesses that bring credibility to the market, maintain strong governance standards and generate confidence among institutional investors.

Market participants are adjusting as well. There is greater emphasis on free float levels, liquidity and disclosures. Sectors with solid fundamentals, such as enterprise software, logistics technology, infrastructure-linked platforms and digital financial services, are attracting more interest than consumer apps that rely heavily on burn rates. 

This aligns with wider regional trends. As Malaysia ramps up its artificial intelligence (AI) strategy and experiences its data centre boom, founders across both countries are thinking more carefully about long-term capital routes.

What still holds founders back and how to build IPO readiness

Many tech companies have the potential to list but remain unprepared for public market expectations. Visibility of profit is often the first hurdle. Some companies grow rapidly yet lack clear pathways for margin improvement. 

Others have irregular reporting practices, which weaken the credibility of their numbers. Customer concentration risk is another common concern. These gaps can delay listings or result in lower valuations.

A structured readiness plan across 2025 and 2026 can resolve most of these challenges. The steps include stronger audit frameworks, predictable monthly financial closes and a more consistent investor relations approach. 

Founders also need boards with genuine independence and operating experience. Clear KPIs matter too since public investors want metrics tied to recurring revenue, retention and cash flow rather than vanity indicators.

Global IPO trends report highlights the importance of regulatory clarity around structures such as multiple voting shares. These updates give founders more confidence to list without worrying about losing control.

This level of preparation is especially important for Malaysian founders who plan to scale into Indonesia since regional investors will expect clean reporting and stable financial discipline.

Choosing Jakarta and knowing when alternative routes make sense

The IDX remains a strong listing option for specific tech categories. SaaS businesses with predictable recurring revenue tend to perform well. Infrastructure adjacent tech, such as logistics, mobility, energy and supply chain platforms, is the current investor appetite. Niche consumer platforms with loyal users and sensible cost structures still have room to grow.

Yet an IPO is not always the right move. Some companies may find better outcomes through strategic M&A, especially if they sit in fragmented sectors. 

Others may pursue a dual track process to keep valuation options open. What matters most is that founders make the decision based on readiness, not momentum.

The ecosystem supporting tech IPOs is stronger today. Banks, legal firms and advisors have more experience than they did five years ago. Pre-IPO crossover funds have become a crucial bridge for companies seeking to establish institutional credibility early. 

Together, these players make the process more predictable and less experimental than in earlier cycles.

As 2026 approaches, the message is straightforward. Indonesia’s market prefers companies that show discipline, clarity and operational steadiness. Tech Collective’s call for the year reflects this. There may be fewer listings, but the ones that come through will be better prepared and more sustainable. 

Founders who commit to governance and cash flow discipline will not only find receptive investors on the IDX but will also unlock the capital needed to expand across Southeast Asia.