With a population of over 270 million, Indonesia is Southeast Asia’s largest economy and one of the world’s most populous countries. As a member of the G20, Indonesia has seen rapid growth over the past decade, averaging over 5% GDP growth annually. This makes Indonesia an attractive destination for foreign investment. There are many advantages for companies and individuals looking to invest in Indonesia.
abundant natural resources provide huge potential
Indonesia is rich in natural resources like oil, natural gas, timber, copper and other minerals. This provides tremendous opportunities in energy, commodities and resource extraction. Upstream oil and gas, as well as related services remain lucrative. Indonesia aims to become one of the world’s top 10 economies by 2030, which will drive massive demand for energy and raw materials.
large and growing consumer market
With a young, growing population, Indonesia offers a large consumer market hungry for everything from consumer goods to financial services. The middle class is expected to double to 141 million by 2020. Rising incomes and purchasing power translate to strong domestic consumption. Both local and multinational companies can benefit by catering to this expanding Indonesian consumer base.
improving infrastructure drives new opportunities
The Indonesian government recognizes infrastructure as vital for economic growth. Major investments are being made in roads, ports, power plants and more. This is reducing logistical costs for businesses and creating new opportunities in construction, transportation and other infrastructure-related sectors. For example, the government aims to add over 1,000 km to the nation’s toll roads and over 5,000 MW of power capacity.
government incentives and reforms attract investors
Indonesia offers a range of incentives such as tax holidays and import duty exemptions to boost investment, especially in priority sectors like manufacturing. Reductions in corporate income tax and a new 16% tax rate for publicly listed companies also improve Indonesia’s investment climate. Ongoing legal and regulatory reforms aim to reduce bureaucracy and improve the ease of doing business.
In summary, Indonesia provides tremendous opportunities spanning natural resources, consumer markets, infrastructure development and more. Investors can benefit from Indonesia’s economic potential, demographics, government incentives and reforms. As one of Asia’s rising economic powerhouses, Indonesia offers an appealing long-term investment destination.