Foreign investors are eyeing a significant stake in Indonesia’s leading pay television platform, highlighting mounting overseas interest in the fast-growing economy.

People familiar with the matter said private equity firms and strategic buyers were in talks to buy a 40 per cent stake in MNC Sky Vision, in a deal that could value the operator at up to $800m including debt.

MNC Sky Vision’s two brands, Indovision and Top TV, combined have 610,000 subscribers, or a 70 per cent share of the pay-TV market. The company last year reported earnings of about $35m.

According to Media Partners Asia, a research group, the penetration rate of pay-TV in Indonesia is expected to climb in the next five years from 3 per cent to 8 per cent, or 3m subscribers.

“This is a rare chance to enter an Asian television market with vast growth potential,” said a person familiar with the sale.

MNC Sky Vision is controlled by Global Mediacom, Indonesia’s leading media group, which owns a 51 per cent stake.

Two local groups, which each own a minority stake, are expected to divest some of their holdings while new shares could also be issued to a foreign investor.

JPMorgan and Standard Chartered have been hired to assist in the MNC Sky Vision sale, according to people close to the process.

Interest in Indonesia has risen after the re-election as president of Susilo Bambang Yudhoyono. Foreign investors believe the added political stability will bolster economic growth.

This week CVC Capital Partners announced plans to lead a $770m buy-out of Matahari Department Stores. It would be the country’s biggest private equity deal.

Opportunities created by strong economic growth across developing Asia are attracting the attention of private equity groups, which are keen to acquire fresh assets and to divest portfolio companies bought in previous years.

CVC is looking to sell GS Packaging, a leading Malaysian paper products company, according to people familiar with the matter, while Affinity Equity Partners is planning a stock market listing of Loscam, an Australian-based pallet supplier.

In a further sign of robust global interest in Asian private equity, Axiom Asia, a fund-of-funds manager, on Friday closed its latest regional fund at $950m.

Fund-of-fund groups raise money from institutional investors and then allocate it to selected private equity funds.

Axiom Asia’s second fund is more than double the size of its first and exceeded its initial target of $750m. About 90 per cent of the investors are based in the US or Europe.