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The archipelago’s political stability, the local policies that continue to support foreign investment, the enormous potentials on its natural and human resources, among others, have put Indonesia on the list of the top 5 Asian countries that are best to make foreign investments on. Obviously, the country has its own benefits as well challenges when it comes to setting up or operating a business in its realms, but getting an in-depth look of its foreign investment climate should shed some light for those who intend to try their business luck and prowess in the Southeast Asian economic giant.

Why invest in Indonesia?

Ranked as the world’s fourth most populated country, Indonesia takes pride in it’s more than 260 million population, which offers both great potential and risks to foreign investors. The country’s population growth is estimated to reach 1.2% every year, while the majority of its population are within productive ages, who are basically potential workers with purchasing power. Indonesia’s economic growth is also continuously increasing, where in the second quarter of 2017 alone, the year-on-year FDI in reached its all-time highest, from 0.9% in the first quarter to 10.6%, which translates to IDR 109.9 trillion (USD 8.2 billion). The world’s growing interest on Indonesia can also be attributed to the government’s efforts to attract more foreign investors. The Indonesian government, under President Jokowi, has recently issued several foreign-investment-friendly policies, including the simplification of the country’s bureaucracy across many aspects, such company registration, permits, taxation, etc. Indonesia is likewise known for its relatively stable economic and political condition as evidenced by its steadily increasing GDP. And for having one of the most rapidly growing middle-class societies in the world, the country is in a progressive state where the local people have a significant purchasing power.

Indonesia's economic growth

By 2030, more than 90 million of all Indonesian population will join the consumer class society with the tendency for that society to join the industrialization in bigger cities where businesses will find it easier to hire labor at relatively lower costs. While more business classifications are being opened for FDI, infrastructures continue to emerge not only in Java but in other Indonesian regions. More roads, harbors, airports, and other physical facilities needed to run businesses smoothly are being made more accessible in more regions in the country. This spells more business potentials available not only in the main cities of Java and Bali but also in other islands of Sumatra, Kalimantan, Sulawesi, as well as Papua.

How Cekindo Can Help You

As a reputable and trusted consultancy agency for expatriates in Indonesia, Cekindo is part of the 3E network (). They can assist with your company’s incorporation through to operational matters. Should you be considering doing business in Indonesia then please contact either [email protected] or Cekindo directly.

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