Currently Indonesia is the number 3 investment destination in Asia after China and India. As for the world, Indonesia is ranked 4th, and Indonesia is the main investment destination for the Southeast Asia region (United nations conference on trade and developments/Untad).
Indonesia has the potential to become an investment destination for the owners of capital, because Indonesia has its own attractiveness, such as progressive economic growth, stable political situation, good investment climate, abundant natural resources, availability of complete raw materials, and prospective demographic situation.
This certainly benefits the vast domestic market, which allows it to continue to grow, and nurture good relations with all countries.
In addition, the government also ensures that investors have the security and convenience of their investments, including the wage issue of workers who have often had a crucial impact on investment.
The government is trying hard to find the best solution, by looking for common ground between the wishes of workers and investors, due to stable politic conditions, and a healthy and well-grown economy is fundamental to the goal of investment.
Indonesia has more advantages than its conflict-affected neighbor with unstable political situation. In addition, Indonesia’s ability to provide secure and comfortable investment land and the value of gross domestic product (GDP) reaches US $ 870 billion.
Indonesia is a country with the largest economy in Southeast Asia, Indonesia is the right country for investment purposes today. Indonesia’s capabilities and resilience have been tested through various economic and political crises.
Both nationally and globally, the government continues to learn in the midst of tough conditions, so as to be able to continuously conduct a safe and secure investment climate.
Thus Indonesia is able to attract investors to invest in Indonesia, By reason of the availability of abundant raw materials and natural resources that many investors will not be difficult to play the production chain.
Indonesia is a major producer of liquefied natural gas and mining in the world. This can certainly attract investors to move in the field of mineral mining of oil and gas. These products are very potential export commodities.
On the other hand, Indonesia’s demographic conditions and situation are also an added value. The large population can be a broad market for the products produced.
In 2015 to 2035, it is estimated that the number of productive age communities in Indonesia will dominate the population segment. Imagine how big the potential of Indonesia’s production in the coming years. Not only as a production power, about 53% of Indonesian people living in urban areas is also a potential market and have a growing purchasing power.
Manufacturing industry, chemical food, and others certainly have a great opportunity to grow and become large industries in Indonesia.
On the other hand, the government is also working hard and continues to work to improve the investment climate in order to ease and comfort of investing can be felt, both by domestic investors and foreign investors.
Some of the conveniences provided are regulatory reform, the launching of economic policy packages, and the ease of licensing services.
The following facilities are specifically given in the field of investment:
1. Companies that use imported machinery may be granted import duty exemption facility on imported machinery.
2. Exemption of import duty on the import of goods and raw materials for production purposes for 2 years.
3. Net income decrease by 30% etc.
Surveys ever conducted by japan bank of international cooperation show the fact that Indonesia is a favorite country for foreign investment purposes. Indonesia ranks first in ASEAN countries for investment purposes. This is much better than Thailand and other ASEAN countries.
Furthermore, when viewed from the investment data issued BKPM (investment coordinating body), the realization of investment in Indonesia in the first quarter of 2017, investment from foreign investment was almost twice than the domestic investment.