Traditionally depends on hydrocarbons and minerals, the digital economy in Indonesia is now flourishing thanks to the high internet penetration and smart population in technology. The tropical climate in the country and the massive ground resources also provide convincing opportunities for the first carbon -free energy investors.
“Reduced” monopolies
Indonesia has borne contracts from the higher dictatorship after independence from the Dutch colonists. Since the fall of the strong president of Soharto in 1998, the country has become democratic. This was “unimaginable during the Soharto era,” says Richard Porsuk, co -author of “Selim” Group of Lyme Siu Lyong: The column of business in Indonesia in Soharto. “
“There is also a good financial management, plus for investors,” he added. “Commercial competition in general increased and the monopolistic force shrinks.”
The negative side? The usual investors on “benign softness” in Singapore should be patient with a long time that it may take to complete matters in Indonesia.
“The bureaucracy can be arduous,” Bouruck added, as he also explains – in Indonesia, as in many Asia – the main relationships. It is solved? Choose the partners carefully, and build contacts with them.
The last elections
Subianto carried a campaign by pledging “continuity” with his predecessor’s policies, Joko (Jokowi) Widodo. One of the Subianto software is to give children from poor families a good feeding to help them grow in good health. “This will be very expensive to provide it in the country, but Prabo will pay him strongly,” says Porsuk.
The former regime in Indonesia also started an ambitious and expensive plan to transfer the capital from Jakarta to a new site in Borneo. It is still not certain whether Brabu will give priority to this project.
Shalini Kamal Sharma has been business in Indonesia since 2004. “Indonesia is a large and growing market for us.”
The real estate sector in Indonesia is currently $ 2.1 billion. It will reach $ 3.65 billion by 2030, with an annual growth rate of more than 12 %, says analysts.
Sharma refers to the active role of Jakarta in encouraging internal investment. “The Government – through BKPM (Investment Coordination Council in the Ministry of Investment) – it responds very to the business community. We have been invited by BKPM to consider specific opportunities, which is a very big and encouraging change.”
BKPM is the main agency that supports foreign investors and works as a bridge between investors and the government. “They are dealing with foreign investors, and as we have learned, they are pre -emptive in helping potential investors,” she says.
In a country, it was once criticized for its difficult bureaucracy, and it indicates major changes here as well. “Getting products through customs has become much easier in recent times.”
A country of agreed
Joel Shin, a lawyer based in Jakarta and Singapore, who heads the practice of technology in Withersworldwide in Asia, features that “Indonesia is a country of clinging and is an attractive investment destination with a number of very clear advantages.”
Indonesia, despite the contraction in the middle class, “is expected to be the third largest contributor in the global middle class over the next decade, after India and China only.”
Besides being the largest economy in Southeast Asia, it is the only country in the region in the G20, which makes it difficult to ignore.
In 2023, Indonesia joined the comprehensive regional economic partnership, which includes all ten countries, as well as Australia, China, Japan, New Zealand and South Korea. “RCep is the largest free trade agreement in the world (FTA), which covers about 30 % of global GDP and about a third of the world’s population,” says Shin.
Indonesia also produces local commodities: from palm oil, which is composed of many fast -moving consumer goods (i.e. foods, cosmetics, soap and biofuels); To nickel, which is necessary in the production of electric car batteries.
Besides developing continuous infrastructure and repairs to improve business, “Indonesia offers many opportunities for investors,” says Sheen.
Digital upward trend
In addition to the population composition and natural resources, the Indonesia economy quickly turns digitally, and it is fueled by the first mobile consumers, according to Chen.
Google, Temayasic and Bain & Company, in its report in Southeast Asia 2024, appointed Indonesia the fastest growing Internet market.
“Investment in Indonesia has become easier due to a mixture of regulatory reforms and digitization,” says Shin. For example, omnibus law reduces job creation, reduces restrictions imposed on foreign property, and improves what was on taxes and labor regulations.
There is also a risk -based online application system, which is an online platform that makes it easier for low -risk foreign investors to integrate Indonesian companies and obtain business licenses.
Tax holidays, tax allowances and other advantages are available to encourage investment in the sectors and regions set by the government.
