Indonesia and Australia have entered negotiations with respect to a new economic partnership in 2016 and by the end of this year, the agreement is expected to be completed. The Indonesia-Australia Comprehensive Economic Partnership Agreement shortly referred to as IA-CEPA will eliminate export tariffs and will increase economic cooperation between the two countries.
The Freeport Indonesia is one of the largest mining sites owned by the Indonesian government, which is why the government decided to improve the tax regulations related to this activity for miners converting work contracts into mining permits. The new tax regulations were issued in July and provide for improved tax regulations for miners.
The Indonesian economy is supported by small and medium-sized enterprises (SMEs) which currently operate at a local level only. This is why the Indonesian National Bank has decided to help these companies and micro-enterprises in expanding abroad. Moreover, the Central bank will help them improve the quality of their products in order to be competitive in the international market, as well.
At the of last year, the Indonesian government issued Regulation 91/2017 through which an online single submission (OSS) system for company registration would be launched this year. The system is now up and only needs to be updated; also, personnel is to be hired. One thing is for sure, though: the OSS has raised the interest of foreign investors who want to come to Indonesia.
At the beginning of June, the World Bank released its report on Indonesia’s economy during the first months of this year, a report which brings good news for the country’s economic results. The first quarter of the year was very good for Indonesia with a year-on-year increase of 5.1%.
Indonesia is slowly but surely exchanging the traditional economy for the digital one, according to specialists attending a conference on blockchain and financial technology held in Jakarta. Indonesia plans on becoming one of the most important digital economies in Southeast Asia in the years to come.
Indonesia has one of the largest workforces in the world, considering its population, however there are industries in which specialists are still necessary and companies find themselves in the position of hiring foreign employees. The employment of foreign workers was somehow difficult until the beginning of this year when the government issued Regulation No. 20/2018 related to the Use of Foreign Workers.
Indonesia has one of the largest populations in the world which means it also has a developed workforce, however it is still difficult for companies here to find the right employees. This is why the Ministry for Industry created the Link and Match program through which employers can find suitable candidates or students which they can prepare easier.
Indonesia has very strict laws related to certain industries and the participation of foreign investors and companies in their exploitation. One of these industries is mining, for which special authorizations are required. Indonesia is a rich country from the natural resources point of view, which is why the government decided to allow private companies owned by foreign investors to bid for mining concessions.
For a few years now, Indonesia is considered the largest economy in Southeast Asia, a fact which is confirmed by the latest economic studies indicating the country’s performance. The last two years brought an increase of more than 5% to Indonesia’s Gross Domestic Product (GDP), with 2017 being one of the best years in the last decade. If you want to open a company in Indonesia, our local consultants can guide you through the company registration process.