Narendra, Mohammad Rosyidan Jati (2025) Determinants of Private Equity Investment In Indonesia: The Role of Industry Profile, Institutional Quality, and Macroeconomic Determinants. Other thesis, Institusi Teknologi Sepuluh Nopember.
![[thumbnail of 5031211031-Undergraduate_Thesis.pdf]](http://repository.its.ac.id/style/images/fileicons/text.png) |
Text
5031211031-Undergraduate_Thesis.pdf - Accepted Version Restricted to Repository staff only Download (2MB) | Request a copy |
Abstract
Penelitian ini menganalisis determinan dari besaran investasi private equity (PE) di Indonesia, dengan fokus pada kondisi makroekonomi, kualitas institusional, dan profil industri selama periode 2010 hingga 2024. Terinspirasi oleh meningkatnya status Indonesia sebagai negara berkembang, penelitian ini menyelidiki secara empiris variabel-variabel yang paling signifikan dalam memengaruhi besaran transaksi PE di negara tersebut. Analisis dilakukan menggunakan model regresi panel Pooled Ordinary Least Squares (OLS), Fixed Effects, dan Random Effects. Indikator komposit untuk variabel makroekonomi (pertumbuhan PDB, stabilitas nilai tukar, suku bunga, dan inflasi), variabel institusional (korupsi, kualitas regulasi, dan supremasi hukum), serta variabel industri (vertikal industri dan tahapan investasi) dibentuk menggunakan Principal Component Analysis (PCA). Temuan penelitian menunjukkan bahwa kondisi makroekonomi secara konsisten dan positif berpengaruh terhadap ukuran investasi di seluruh spesifikasi model. Profil industri juga memiliki pengaruh yang kuat dan signifikan, menyoroti peran intensitas modal dan tahapan investasi dalam menentukan skala investasi. Kualitas institusional menunjukkan hubungan yang positif dan signifikan dalam model Fixed Effects, yang menekankan pentingnya kepastian hukum dan regulasi dalam mendukung transaksi bernilai besar. Secara keseluruhan, hasil ini menyiratkan bahwa manajemen makroekonomi yang stabil, kerangka institusional yang kuat, dan dinamika spesifik industri sangat penting dalam mendorong investasi private equity bernilai tinggi di Indonesia. Studi ini memberikan kontribusi terhadap literatur perilaku investasi di pasar negara berkembang dan menawarkan implikasi praktis bagi pembuat kebijakan serta investor yang ingin mengoptimalkan struktur transaksi di ekosistem PE Indonesia.
===================================================================================================================================
This study analyses the determinants of private equity (PE) investment deal size in Indonesia, focusing on macroeconomic conditions, institutional quality, and industry profile from 2010 to 2024. Motivated by Indonesia’s growing status as an emerging economy, the research empirically investigates the variables that most significantly influence the magnitude of PE transactions in the country. The analysis employs Pooled Ordinary Least Squares (OLS), Fixed Effects, and Random Effects panel regression models. Composite indicators for macroeconomic variables (GDP growth, exchange rate stability, interest rate, and inflation), institutional variables (corruption, regulatory quality, and rule of law), and industry variables (industry vertical and investment stage) are constructed using Principal Component Analysis (PCA). The findings show that macroeconomic conditions have a consistent and positive impact on deal size across all model specifications. Industry profile also exerts a strong and significant effect, highlighting the role of capital intensity and investment stage in determining investment scale. Institutional quality shows a positive and significant relationship in the Fixed Effects model, emphasising the importance of legal and regulatory certainty in supporting larger transactions. These findings collectively suggest that stable macroeconomic management, strong institutional frameworks, and industry-specific dynamics are essential for facilitating higher-value private equity deals in Indonesia. This study contributes to the literature on investment behaviour in emerging markets and offers practical implications for policymakers and investors seeking to optimise deal structuring in the Indonesian PE ecosystem.
Actions (login required)
 |
View Item |