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Deloitte GCSG Published Investing in Indonesia Guide

As the largest economy in Southeast Asia and one of the "MINT" countries (a new group of attractive emerging-market nations, after the "BRICs"), Indonesia has a promising economic prospect deserving of investors' attention.

With our new publication "Essential Investment Gateway into Indonesia (EIGI)," Deloitte provides a reference point for interested investors, answering the "why," "what," "how" of investing in Indonesia, and more.

A number of tailwinds have contributed to Indonesia's rising status as a favorable investment destination, including a young population, a fast-growing middle class, and an advantageous geographical placement.

Situated at the heart of Southeast Asia, the country is the world's fourth populous country, with millions joining the middle class each year, and its consumer expenditure growing at a two-digit rate every year.

To bolster and sustain economic growth, the government of Indonesia is proactive in introducing deregulations and incentives, such as the Economy Policy Packages, to attract foreign investment. The country's GDP is forecasted to increase by 5.2% on average per year over the next five years.

Having felt the impact of the global decline in commodity prices, Indonesia is now readjusting its development strategy to focus more on value-added industries (such as manufacturing and smelting) and infrastructure construction.

Improving the country's infrastructure to support and deepen economic growth has been a top priority of the government, which has conceptualized a series of construction plans to boost domestic connectivity. Meanwhile, neighboring China's "One Belt, One Road" initiative also brings new possibilities to Indonesia's infrastructure development.

With a newly blossoming e-commerce landscape, Indonesia is also set to tap into the potential of its digital economy market in order to help small and medium-sized enterprises integrate themselves into global value chains.

For prospective investors who wish to seize investment opportunities in Indonesia, getting versed in the local investment policies and regulations will provide a unique advantage.

Investment procedures and regulations, tax benefits and eligibility requirements, policies on cooperation contracts, and the culturally specific regulations of Islamic finance are among the factors to consider for those committed to expanding into Indonesia.

Being informed on these issues goes a long way towards making wise investment decisions and optimizing operations on the ground. Based on our previous experiences serving foreign investors, Deloitte's EIGI guide and its trilingual "ACT" glossary set out to cover every dimension of Indonesia's foreign investment landscape, and to provide insights for those who wish to make successful ventures.

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