Jan

08

Indonesia is Hoping Investment from Japanese, South Korean and American Companies Seeking to Relocate Their Factories Out of China and Set Up Manufacturing in the Country as It Begins Reopening

Currently, many factories are trying to move out of China. They are looking for opportunities in the Southeast Asia region. If you are one of these business owners looking for the best place to invest your capital or move your factory, you can look at Indonesia. Our country is always available for all investors from many other countries.

Many business owners and investors are interested in investing their money in Indonesia. You will never regret your choice when moving your business here. Here are some good reasons why you may want to move your business to our country.

Starting a business in Indonesia is getting easier from year to year

This is the first thing that you have to know about Indonesia. According to the World Bank, Indonesia becomes one of the top 100 easiest places to invest in the world. It is effortless for you to establish a business here, register a property, get access to the electricity, pay taxes, establish any contracts, engage in cross-border trade, and do any other things related to your business.

The World Bank survey of 190 countries showed Indonesia’s “Ease of Doing Business”[1] improve from 113rd to 73rd over the past six years . While the world cannot know how long the pandemic will last, Indonesia can do more now, building on the Job Creation Law, to provide ease on doing business and increase national revenues. This shows that the Government of Indonesia has serious effort to support foreign investor by continuously providing regulatory reform in business and investment.

Growing middle classes in Indonesia

We understand that the middle class in Indonesia is still growing these days very rapidly. This number will be desirable for most investors who want to profit from their investment in the Southeast Asia region. According to McKinsey, more than 90 million people in Indonesia will join the consumer class at the end of 2030.

All consumers in this class will have an annual net income of around $US 3,600 or above, especially in purchasing power parity. There will be an additional $1 trillion in annual spending by the most sophisticated consumers in Indonesia.

Big population

Indonesia is considered the 4th largest population country in the world. The population in Indonesia is still growing very quickly every year. Based on the Worldometers statistics, our country’s population will increase by about 3 million people every year. At the end of 2020, Indonesia will have around 270 – 275 million people in total. The population is not only big, but the demographics will be useful for long term economic growth. More than 50% of Indonesians are younger than 2 years old. This number will give an excellent demographic dividend in the future.

Urbanization will occur more frequently

Indonesia will become an urban nation very quickly. Many people are entering the consumer class, and they will look to consume certain products or services. There will be a lot of opportunities for any real estate or infrastructure projects in the fast-growing cities. The urbanization trend will not only occur in Jakarta. Many other cities from other parts of Indonesia will grow very quickly in the next couple of years. It is predicted that Indonesia will have about a 50% urbanization rate from major provinces.

Biggest economy in the Southeast Asia region

When we are talking about some countries in the Southeast Asia region, we cannot forget Indonesia. Indonesia has the biggest population in this region to have the largest and fast- growing GDP per capita. This number is much higher than the other countries with emerging markets in this Southeast Asia region. This year, the GDP (Gross Domestic Bruto) in Indonesia can reach up to 1.042 trillion USD. This number will be good for all investors and business owners who want to start making money in our country.

There are many other benefits that you will get by investing your capital in Indonesia. As a business owner, Indonesia is ready to provide support for your business. It is highly recommended that you use a professional law firm service never to have to get any problems in the future. Schinder Law Firm is specially created to provide the best information and the latest insights about Indonesia’s latest news. If you want to know about foreign investment in Indonesia, you can always call us at any time you want. Our law firm is supported by some professional lawyers who have experience in this industry.

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[1] “After the pandemic, tax and investment policy for growth”. Jakarta Post. https://www.thejakartapost.com/academia/2020/12/15/after-the-pandemic-tax-and-investment-policy- for-growth.html.

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