13 Jan 2017
An Introduction to Foreign Investment in Indonesia
The slowdown and repositioning of China’s economy has changed the game for many foreign businesses operating in Emerging Asia. Faced with rising costs, these businesses have looked south to ASEAN countries that offer lower cost jurisdictions to take on the more labor-intensive aspects of foreign investors’ production and supply needs complement their China operations in a strategy dubbed the “China Plus One” model. While many investors will find fertile ground in emerging tiger economies like Vietnam, Indonesia stands out in the region for its competitive wages, large labor pool, and burgeoning domestic market. With a population exceeding 250 million, the country is poised to become an immensely lucrative market as it develops further and the urban consumption class continues to grow.
Examining these trends, this report highlights how Indonesia has made enormous strides in streamlining and liberalizing its business environment in order to capture larger inflows of foreign direct investment (FDI).
Please click to read the full report.