An Introduction to Foreign Investment in Indonesia
Published: October 2016Indonesia stands out in the ASEAN region for its competitive wages, large labor pool, and burgeoning domestic market. With a population exceeding 250 million, the country is poised to become an immensely lucrative market as it develops further and the urban consumption class continues to grow. In this inaugural issue of Indonesia Briefing magazine, we examine these trends, and highlight how Indonesia has made enormous strides in streamlining and liberalizing its business environment in order to capture larger inflows of foreign direct investment (FDI).
No. of Pages: 12 pages
In this issue of Indonesia Briefing:
- Navigating Indonesia’s Foreign Investment Environment
- Indonesia’s Updated Negative List: New Opportunities for Foreign Investment
- Establishing a Representative Office in Indonesia
- Understanding Tax Treatment of Representative Offices in Indonesia
The slowdown and repositioning of China’s economy has changed the game for many foreign businesses operating in Emerging Asia. Faced with rising costs, these businesses have looked south to ASEAN countries that offer lower cost jurisdictions to take on the more labor-intensive aspects of foreign investors’ production and supply needs to complement their China operations – a strategy dubbed the “China Plus One” model. While many investors will find fertile ground in emerging tiger economies like Vietnam, Indonesia stands out in the region for its competitive wages, large labor pool, and burgeoning domestic market. With a population exceeding 250 million, the country is poised to become an immensely lucrative market as it develops further and the urban consumption class continues to grow.
Identifying this trend, our firm, in partnership with Winnindo Business Consult – a full service accountancy and foreign investment consultancy with offices in Jakarta and Tangerang – is proud to launch our new Indonesia Briefing magazine and website. As this issue will highlight, the country has made enormous strides in streamlining and liberalizing its business environment in order to capture larger inflows of foreign direct investment (FDI). However, as legal and regulatory hurdles to investment continue to exist, through our new Indonesia Briefing platform and blended service suite, we hope to create a straightforward roadmap for businesses to facilitate their investments in the country. After reading this magazine and other materials published by our firm and Winnindo Business Consult, we trust investors – both seasoned veterans of Asian markets as well as those new to the region – will understand the massive potential offered by Indonesia, an emerging powerhouse in ASEAN which cannot be ignored.