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Opportunity to invest in Indonesia: Basic guide for foreign investors

US News published a survey entitled 2018 Best Countries. One of the topics raised in the survey is the best country to invest in the world. The good news is Indonesia ranked the second best of the 20 countries for investment in the world. The ranking was compiled according to survey results conducted on 6,000 respondents. They are the business policymakers that come from all over the world.

The Opportunity to Invest in Indonesia

The Opportunity to Invest in Indonesia - Opportunity to invest in Indonesia: Basic guide for foreign investors
The Opportunity to Invest in Indonesia – Opportunity to invest in Indonesia: Basic guide for foreign investors – invest

 

In recent years, the government of the Republic of Indonesia continues to improve the ease of capital investment for investors. This is certainly done to improve the business climate in Indonesia. Evidently, ease of doing business (EODB) rating now rises from 91 to 72. In other words, the ease of investment regarding licensing in Indonesia has improved.

The government reformed several aspects such as making start-up costs lower, initially 19.4% down to 10.9%. The cost of obtaining a power connection is also made cheaper by reducing connection fees and cable certification, which previously 357% has now dropped to 276%.

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The Promising Business Sector in Indonesia

The Promising Business Sector in Indonesia - Opportunity to invest in Indonesia: Basic guide for foreign investors
The Promising Business Sector in Indonesia – Opportunity to invest in Indonesia: Basic guide for foreign investors – phelepsattomeys

 

If you are looking for an opportunity to invest in Indonesia, there are five promising business sectors.

  1. Tourism

Having a beautiful nature, tourism is still a leading sector in the Indonesian economy. Also, tourism is the most sustainable commodity and able to touch up to the lowest level of society.

  1. E-commerce

Investment in the e-commerce continues to increase every year. The main reason many investors are interested in this sector is that of the large population of Indonesian society and the ease of internet access in the country.

  1. Retail

Infrastructure development in Indonesia continues to be improved to facilitate access to remote areas. Surely, it has affected the retail and trade businesses in the country.

  1. Construction

Indonesia’s vast territory makes infrastructure still an interested sector for investors. Moreover, Indonesia’s large population makes the property remains a promising business.

  1. Agriculture

As we know, Indonesia is known as an agrarian country. No wonder the agricultural sector still attracts the investors. Besides, innovations related to agricultural technology also have a good market in Indonesia.

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Foreign Investment in Indonesia

Foreign Investment in Indonesia - Opportunity to invest in Indonesia: Basic guide for foreign investors
Foreign Investment in Indonesia – Opportunity to invest in Indonesia: Basic guide for foreign investors – marketeers

 

Investment in Indonesia has been regulated in Law Number 25 of 2007. Under this Act, foreign investment means investment activities for business affairs in the territory of the Republic of Indonesia by foreign investors, whether using fully foreign capital or joint ventures with local investors. The quote was taken from Article 1 of Law No. 25 of 2007 on Investment.

The realization of foreign investment in Indonesia also has an increasing trend. Investment Coordinating Board (BKPM) recorded the realization of investment in the first quarter of 2018 (January-March) amounting to Rp185.3 trillion. For the foreign investment, BKPM recorded an increase of Rp108.9 Trillion, up 12.4 percent over the same period last year come to Rp97 Trillion.

After reading the above information, are you interested in investing in Indonesia? For more information on legal documentation, Company Registration Co. ID is the solution for you. Trusted since 2001, thousands of local and foreign companies have used this company’s services. Document processing is ensured to be easier and super-fast.

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