Indonesia's rapidly expanding art scene is experiencing a noticeable slowdown as economic uncertainty dampens collector enthusiasm and spending. Despite years of robust growth that saw Art Jakarta expand from an annual to biannual event, with plans for a third annual show in 2026, the current economic climate has cast a shadow over the burgeoning market.
Visitors to Art Jakarta in early October found an impressive array of artworks on display, including paintings by Indonesian masters like Affandi alongside works by emerging contemporary artists. International galleries from the Philippines, Malaysia, South Korea, and Japan showcased their collections, while performance artist Victoria Kosasie created buzz by dunking her head into a water-filled box while screaming. However, what many overlooked were the prominent sponsor billboards featuring major financial institutions like Swiss private bank Julius Baer, local trading platforms Treasury and Bibit, and Bank Central Asia, Indonesia's largest privately owned bank.
"The art scene and the market are always complementing each other," explained Natasha Sidharta, a prominent local collector. "It is hand in hand with the economy of the country, of the world." The market's recent growth has been driven primarily by young Indonesians who studied or worked abroad and developed an appreciation for art, returning home with both refined tastes and purchasing power.
Tom Tandio, director of Art Jakarta, noted the expanding collector base. "I feel like the market is developing," he told reporters. "It feels like there are more and more people trying to relate themselves with art and culture." Art dealers have actively cultivated new collectors through initiatives like the One Piece Club, where members regularly visit exhibitions and collectors' homes with the expectation of purchasing at least one piece from a living artist.
Corporate involvement has also grown significantly, with companies using art to enhance their brand messaging. At its Art Jakarta booth, online investment platform Bibit displayed a series of whimsically altered self-portrait heads by prominent contemporary artist Agus Suwage, rebranding his social critique works as "Portrait of Possibilities." William Ndut, Bibit's head of public relations, explained their approach: "We want to tie the brand message that everyone in Indonesia is entitled, and has the same rights, to build and have a better financial future via investment. That's the essence of being human."
The messaging appears to resonate with new collectors who are drawn to personal narratives rather than purely aesthetic considerations. "They're drawn to the stories, regardless [of] how the artwork looks," said Rio Pasaribu, co-founder and director of Ruci Art Space. "Something that relates to them. Usually it's zero-to-hero stories." Other collectors are motivated by traditional beliefs, with curator Dwi Rahayu from Gallery 75 noting that "lawyers like horses -- police also, because horses give you power," while feng shui enthusiasts prefer harvest and water themes.
Art Jakarta has thrived since its 2009 launch, distinguishing itself from the established ArtJog in Yogyakarta by working directly with galleries rather than individual artists. "A lot of times artists can be noncommercial," Tandio explained. "Whereas at an art fair the galleries are always thinking, 'Can we sell this work?'" This year's event attracted 75 galleries and nearly 38,000 visitors, with prices ranging from around 12 million rupiah ($720) for emerging artists to over $1 million for major works by established masters like Affandi.
The fair has become a regional hub, attracting Southeast Asian galleries that might be overshadowed at major international events like Art Basel or Art SG in Singapore. "What we love about Art Jakarta is it's more regionally focused," said Nicole Decapia from Manila-based gallery The Drawing Room. However, the market remains fragmented along national lines, with Ong Kar Jin from Malaysian gallery The Back Room noting that "the art scene is quite nationalistic. Local collectors want to buy local art."
Despite this regional focus, Southeast Asian buyers are increasingly participating in global markets. Jasmine Prasetio, managing director for Southeast Asia at Sotheby's, reported that "since 2022, Sotheby's saw 60 new bidders from Southeast Asia participating in Sotheby's global sale," with a 20% surge in new participants from the region in 2024.
However, 2025 has brought a marked cooling of the Indonesian market. "It's slowing down at quite a rapid rate," said Raihan Prabowo, program director at Jakarta gallery Sewu Satu. While visitor numbers to the latest Art Jakarta remained stable, buyer activity declined significantly, with many galleries now relying on post-exhibition sales to meet their targets.
Economic anxiety is the primary factor behind this slowdown, according to industry insiders. Established collectors are spending less while new collectors have become scarce. "It's not because [collectors] are getting poorer," Pasaribu explained. "But from the beginning of the year, people are saying there's going to be a crisis. So they're keeping their money back." One anonymous collector confirmed this sentiment, stating, "I'm not spending so much this year. No one's feeling rich with the economy like this."
The market has also been affected by a series of high-profile corruption trials this year. "Of course I want the government to be clean. But honestly the people who have been caught from January [up] to now are all collectors," Pasaribu noted, highlighting how political scandals have impacted the art community.
Globally, the art market reflects similar trends, with Bank of America's Art Market Update showing that sales of "masterpieces" above $10 million dropped sharply in the first half of 2025, though the total number of lots sold actually increased. Indonesia's market appears particularly vulnerable to economic cycles due to its shallow depth – while large for the region, it remains confined to a small minority of the population.
Syanda Kunto, CEO of Sidharta Auctioneer in Jakarta, explained that this shallow market makes it difficult to establish consistent pricing for Indonesian artists' works. The domestic market's limited scope also hinders efforts to promote Indonesian artists in international auction houses, creating a cycle that keeps the market relatively insular.
Looking ahead, the Indonesian art scene faces the challenge of maintaining momentum despite economic headwinds. While the fundamental interest in art collecting continues to grow among younger Indonesians, the market's expansion may pause until economic confidence returns. The planned addition of Art Jakarta Paper in 2026 will test whether the market can support three annual events, or whether organizers will need to adjust their ambitious growth plans to match the current economic reality.
