M&A activity in Southeast Asia surges in the first quarter of 2025, as deal value grew by 296.1% quarter on quarter.
This is the findings of a report by Speeda, revealing that the spike was largely attributable to large-scale restructuring of Indonesian state-owned enterprises (SOEs), which contributed a commanding 71.6% of total deal value.
Government-led transactions, primarily in the finance, telecommunications, and industrial sectors, marked a strategic reallocation of assets under the sovereign wealth umbrella of PT Biro Klasifikasi Indonesia (BKI).
While the Indonesian government technically transferred its Series B shares in these entities, the Speeda report found that it maintained effective control through the retention of Series A shares, preserving majority ownership and decision-making power.
The report highlights that the broader Southeast Asian M&A market still recorded a 12.3% increase in deal value and a 29.0% rise in volume compared to the previous quarter even when excluding substantial Indonesian SOE deals, showing that the overall market recovery is not solely dependent on state intervention but reflects a modest rebound in private sector activity as well.
Meanwhile, cross-border and inter-regional deal activity in Southeast Asia also displayed noteworthy trends in the first quarter of 2025, reflecting the broader rebalancing of investment flows and a resurgence in intra-regional confidence, likely spurred by state-led signals and recovering fundamentals across key markets.
Cross-border deal value still grew by around 9% compared to the previous quarter, despite the overall decline in share.
According to Speeda, Singapore played a pivotal role in this growth, continuing to act as a regional hub for both outbound capital and inbound interest.
The rising number of domestic deals across the region also slightly diluted inter-regional deal volume share, but Speeda says this was more a reflection of improved local economic sentiment rather than a drop in regional collaboration.
