Why Is Indonesia an Attractive Country for Investors?

Updated on Sunday 12th November 2017

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The last two years brought a significant increase to the Indonesian economy, placing among the best countries to invest in Southeast Asia. In number, foreign investments in Indonesia implied 29 billion USD in 2016. The industries attracting this amount of money were electronics, machinery and equipment and the pharmaceutical ones. The number of foreign investors opening companies in Indonesia has also increased compared to the number of local investors.

Those who want to open a company in Indonesia should know that the government has put in place many programs meant to help them. Our company formation consultants in Indonesia can explain the legislation governing foreign direct investments in the country.

Foreign investments in Indonesia

With more than 200 million individuals in population, Indonesia represents one of the largest markets in Southeast Asia which is why it attracts thousands of foreign investors on a yearly basis. The industries mentioned above together with tourism make the most important investment sectors for those who interested incorporating companies in Indonesia.

Other emerging industries foreign investors are attracted to are agriculture, information technology, the biomedical and the financial ones. During the last few years, the energy sector has also started attracting numerous foreign direct investments in Indonesia.

Our Indonesia company incorporation agents can offer more information on how to open companies in this country.

Assistance offered by the government to foreign investors in Indonesia

There are numerous programs, incentives and laws put in place by the government for those who want to start companies in Indonesia. Among these are:

-          low import and export duties;
-          privatization programs for industries like the financial and transportation ones;
-          foreign tax credits;
-          double tax treaties;
-          corporate tax reductions.

Indonesia is also home to several special economic zones and integrated economic development zones in which foreign investors operating through companies registered in Indonesia can benefit from numerous incentives, among which VAT exemptions.

A few years back the company registration process was also simplified. If you want to open a company in Indonesia and need assistance, please feel free to contact our local consultants.


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