Family businesses likely to be a gold mine if mindsets change

FILE PHOTO: Trucks drive past stacks of containers at the Tanjung Priok port in Jakarta, Indonesia, February 3, 2023. REUTERS/Ajeng Dinar Ulfiana/File Photo

JAKARTA: Many businesses in Indonesia remain under family control, but investment bankers say the segment offers ripe pickings for corporate action including initial public offerings (IPOs) once a new mindset – or a new generation – takes hold.

Indonesia has a low stock-market capitalisation-to-gross domestic product (GDP) ratio when compared to other countries, even in Asean, meaning less of the country’s economic productivity is reflected in the stock market.