Creating and protecting a business in Indonesia, the fourth most populous country in the world
Why invest in Indonesia ?
The size of the Indonesian population is a solid reason to invest or to strengthen an existing presence there. With 250 million inhabitants, Indonesia is the fourth largest country in the world by population after China, India, and the United States. Politically, the country is experiencing a period of stability as two presidents (Megawati Sukarnoputri and Susilo Bambang Yudhoyono) have peacefully left office and let their elected successor be sworn in. The economy has improved these past years, reaching a growth level of more than 5%. This period of prosperity follows years of instability, which originated in the economic crisis of 1997 and the departure of General Suharto in 1998.
The current environment is providing a wealth of opportunities for investors. Whereas previously the army represented the only solid institution within the country, Indonesia is now a more open society that is welcoming to foreign investment.
IAS8’s recommendations in Indonesia
Indonesia is a good market for investments, thanks to its size and its young population. In addition, the country is well endowed with natural resources and an open attitude to investors.
Aspects to monitor when investing in Indonesia
Despite Indonesia’s now stable investment environment, businesses considering entering the market should nonetheless exercise a certain amount of due diligence as this period of stability remains relatively young. However, President Joko Widodo, who is somewhat of an outsider, should help strengthen the opening up of the Indonesian economy and increase security for business investments.