[JAKARTA] Indonesia’s initial public offering (IPO) market is off to a roaring start in 2025, raising nearly US$420 million from 13 listings – almost double last year’s tally for the same period – but the rally may be short-lived.

Analysts warned that the momentum may not last, as ongoing macroeconomic volatility, escalating geopolitical tensions and shifting capital flows cast doubt over Jakarta’s ambitious IPO target for the year.

By early May, 13 companies debuted on the Indonesia Stock Exchange (IDX), pulling in 6.94 trillion rupiah (S$543.2 million) in proceeds – a 79 per cent increase in value compared to the same period last year. Analysts cited the surge in renewed investor confidence after Indonesia’s presidential election last year.

The momentum could be fleeting, with mounting global headwinds – although Amit Singh, head of South and South-east Asia capital markets at Linklaters, pointed out that Indonesia’s IPO pipeline has held up relatively well, with capital flows not shifting away from the country any more than from other markets.

However, the stock exchange’s target of drawing more than 60 IPOs this year is looking lofty.

“That number is unlikely to materialise, which gives the impression of a more significant impact to the country,” he told The Business Times.

He noted that no IPO market in South-east Asia performed particularly well in the first quarter, as inv...