- Indonesia has a large domestic market
Indonesia has the fourth most populous population in the world which is 261.1 million. Given this fact, Indonesia can become a very profitable domestic market. The number of consumer targets you can choose to make your investment will never disappoint.
- Indonesia has a healthy economy
The Indonesian economy is the seventh largest in terms of GDP in the world according to the World Bank. Indonesia maintains strong economic growth and the outlook continues to be positive, according to the World Bank. Indonesia’s real GDP growth picked up to 5.2 percent year-on-year in the fourth quarter of 2017 from 5.1 percent in the previous quarter. For 2017, the country’s GDP growth rose to 5.1 percent from 5.0 percent in 2016, its highest growth rate in four years. The 5.27 percent growth pace of the Indonesian economy in Q2-2018.
- Good political stability
Another reason you should know about investing in Indonesia is about the political stability of this country. Indonesia is the world’s third largest democracy, the largest economy in south-east Asia, and the only member of ASEAN in the G20. It is a role model for a successful political transition. Indonesia is stable politically and has a Presidential system of democracy.
- Doing business is getting easier every year
Indonesia has followed through significant efforts to make it worthy of jumping 15 places upward from last year in the ranking list by World Bank. 2017 statistics for Ease of Doing Business allow Indonesia to stand on the 91st position. Compared to the 128th position in 2013, the last couple of years give more reason why to invest in Indonesia as the ranking has improved remarkably:
World Bank Country Director Rodrigo Chaves has stated that the strongest positive influence for Indonesia´s index change was improving the following:
- Easier to establish business
- Access to electricity
- Registering a property
- Acquiring finance
- Paying taxes
- Engaging in cross-border trade
- Establishing contracts
- Government support
The Government of Indonesia strongly supports all forms of investment from abroad. Total direct investment (foreign plus domestic investment) in Indonesia rose 12.4 percent in Q1-2018. "This is the first time in many years... that Indonesia has taken steps to open up investment rather than close it," said Mr. Lin Neumann, managing director of the American Chamber of Commerce in Indonesia.
- Indonesia has many natural resources
Indonesia is a country rich in natural resources. Such as oil, liquefied natural gas, and other mining products. In addition to mining goods, Indonesia has a lot of natural resources like timber, natural products, and forests.
- One of the world´s fastest-growing middle classes
The middle class in Indonesia is growing fast making it a valuable target group for investors. According to McKinsey, around 90 million Indonesians will join the consumer class by 2030. Consumer class, in this case, being people with an annual net income of $US 3.600 or above in terms of purchasing-power parity. That will mean an additional $1 trillion in annual spending by the nation’s optimistic and increasingly sophisticated consumers.