Potential and Opportunity to Invest in Indonesia and Different Types of Investors

Opportunity to Invest in Indonesia | Company-Registration.Co.ID

Opportunity to Invest in Indonesia – Investment is an activity of investing resources or capital at the moment, in the hope of obtaining more benefits in the future. Or the definition of investment is an investment activity today or now, in the hope to generate more funds than the funds invested in the early investment.

Reasons to invest include: a steady decline in productivity, an uncertain economic environment to allow for a time when revenues are far less than expenditure, and needs that tend to increase. There is an opportunity to invest in Indonesia that is easy and profitable. In the investment there are many types of investors, more specific reasons, and various potential businesses that exist in Indonesia.

1. Investor Type According to Risk Profile

• Defensive, investors with defensive types, these investors seek to gain profit and avoid the slightest risk of investments made. This type of investor does not have enough confidence in speculation, and prefers to wait for the right moment in investing to avoid the risk of investing.
• Conservative, investors with conservative types, usually invest to improve the quality of family life and with a relatively long investment span, for example, for college education of children or the cost of living in old age. Investors of this type have a tendency to invest with a decent yield only and do not have big risks, because their investment philosophy to avoid risk.
• Balanced, investors with a balanced type, is the type of investor who wants medium risk. Investors of this type always look for a balanced proportion of possible risks to occur with earned income. Typical investors that they will always be careful in choosing the type of investment, and only a proportional investment between the risks and earnings that can be obtained to be selected.
• Moderately aggressive, is the type of investor who is calm or not extreme in the face of risk. These investors tend to think of the possibility of risk and the possibility of making a profit. In this case, investors with moderately aggressive types are always calm in making investment decisions because the decisions taken are already thought out.
• Aggressive, so-called ‘players’, are the opposite of conservative investors. They are very careful in analyzing the portfolio they have. The more numbers and facts that can be analyzed is the better. Investors of this type usually invest with a fairly short span of time because it expects big profits in a short time. While not expecting to lose, yet every aggressive investor realizes that losses are part of the game.

2. Reasons for Investing in Indonesia

There is an opportunity to invest in Indonesia, so many foreign businessmen and local businessmen who want to invest. Indonesia becomes the right investment destination. The potential strengths of competitiveness with other countries: abundant natural resources, large and growing domestic markets, young and skilled workers, and government support improve the investment climate and Indonesia’s role at the international level. With the political stability of 17 years of democratic rule, the Indonesian economy is ready to take off.

• A healthy Indonesian economy. Indonesia is a driver of Asian economic growth. With GDP reaching USD870 billion in 2014, Indonesia has the largest economy in Southeast Asia.
• Political Stability in Indonesia. Political stability becomes the basis of the dynamics of economic life in Indonesia. Since waking up from an autocratic government 17 years ago, Indonesia, which has just run a democracy.
• Investment climate. Along with Indonesia’s economic resilience during the global financial crisis and thereafter, the government continues to reform the investment climate in order to create safe and attractive investment objectives.
• Natural Resources of Indonesia. Indonesia is very rich in natural resources ranging from being a major producer of liquefied natural gas and increasing the mining industry. Petroleum and minerals are the main export commodities. Indonesia is endowed with so many unimaginable amounts of natural resources. Due to this abundant natural resources, many foreign investors want to invest in Indonesia.
• Demographics Indonesia experienced a shift in population structure known as the ‘demographic bonus’ in which the number of productive working groups in the year 2025-2035 will dominate.
• Domestic Market. As the fourth most populous country in the world, more than 53% of Indonesians live in urban areas with modern lifestyles and increased purchasing power.
• Global Role. Indonesia plays a more dominant role in global issues. As the only G20 member country of Southeast Asia, Indonesia is actively voicing the interests of developing countries.

Discussing about investment, Indonesia is indeed able to attract the attention of foreign investors. This is because human resources and capital to manage itself is still very limited. Besides the lack of government attention to provide training on human resources Indonesia is still far from good words, so investors glance that this is an opportunity that must be penetrated to cover the existing weaknesses. So the role of government here is as a watchdog for the wheels of investment from foreign investors.

3. Potential investment in Indonesia

The opportunity to invest in Indonesia, some of which are as follows:

• Startup. This one sector is very famous for this year. This sector is emphasized in the field of information technology. Startup is a business that starts from 0 to become a big business.
• Agriculture, Plantation and Livestock. in addition to franchise, other sectors that have the attraction to lure investors are agriculture, plantation and livestock. Indonesia has a lot of land that has not been optimized, while the need or demand for agricultural products, plantation and animal husbandry is still very high and has not been fulfilled. So this is a good opportunity for investors who want to invest in this sector.
• Franchise. Many known franchise business that thrives in Indonesia. Investors are eyeing this because the franchise business is rated very quickly for its velocity of money. Almost all areas of business are dominated by franchise, such as food, beverages, to the education sector into potential land to be worked on. Opportunity to invest in Indonesia can be developed to become a promising business.