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Best 3 Offers from Indonesia for Your Business Investment Opportunities

Business Investment Opportunities in Indonesia

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Business Investment Opportunities – Your plan to expand your business requires you to reach out to a new country and open new market opportunities there. It takes a lot of consideration to expand your business investment and company establishment opportunities. It is a new country with different regulations. It is a brand-new playground for your business. 

Indonesia may not be your first choice for foreign investment. However, this country has everything it takes to become the perfect place for your business.  

We are talking about the largest economy in Southeast Asia region. Indonesia has shown its economic strength throughout the years. It is also the fourth most populous country in the world which offers more potential for your investment.  

What are the other potentials that Indonesia holds for your business? Read on and you will find out why you should consider Indonesia for your next investment. 

 

Understanding Foreign Investment 

Business Investment Opportunities Indonesia - Wartawan
Business Investment Opportunities Indonesia – Wartawan

 

Foreign investment is when an investor or businessperson purchases an asset in a foreign country. There is a movement of capital or cash flow from one country to another.  

There are two types of foreign investment based on types of assets: direct and indirect investment. 

With direct investment, investors purchase physical assets that can be retained for the long term, such as factory buildings, plants, or machinery. While with indirect investment, investors purchase shares of certain foreign companies through the stock market. 

Investment regulations in Indonesia ensure you would be able to do both types of investment in this country.  

 

Making Business Investment in Indonesia 

Business Investment Opportunities Indonesia - Wartawan
Business Investment Opportunities Indonesia – Wartawan

 

It is understandable if you want to ensure you put your investment in a safe place that will bring in profit. If you check on the foreign investment trend in Indonesia, you will find the potential this country offers you.

Reuters reported Indonesia’s foreign investment value rose up to 63,3% by the third quarter of 2022. There are some influential reasons for this big rise, such as: 

 

  • Indonesia’s Big and Growing Market 

 

In 2022 Indonesia Central Bureau of Statistics or what popularly known as BPS, reports there are more than 275 million residents in Indonesia. BPS projects by 2045 the number will grow to more than 318 million

This amount of people covers up to 3,51% of total world population, making Indonesia at the fourth rank in the list of countries by population.  

The number makes a difference to your investment since it shows the buying power that this nation offers. In short, it can benefit your business since it brings a bigger market for your product. 

 

  • Supportive Regulations 

 

Since you are a foreigner, it is common sense that local government regulations do not favor your business. However, Indonesia has several regulations that are specially aimed at foreign investment. And it brings fresh air since it eases up the process. 

This is not an empty claim, as proven in the World Bank index on the list of world countries by the Ease of Doing business. On the list produced in 2020, among the 109 countries, Indonesia holds the 73rd rank.  

Although Indonesia has not reached the top rank on the list, this is an improvement from the rank of 129 that the country got in 2012. This progress is due to the big change in Indonesia’s business processing. The Online Single Submission (OSS) system was introduced in 2018 to simplify business licensing processing.  

The Indonesian government intends to increase the country’s foreign investment. The OSS is only one of the breakthroughs that they are planning. In the future, it is possible that you will find more regulations and improvements that will help you do your business in Indonesia. 

 

  • Stable Economy 

 

Going through numerous economic crises and terror attacks, Indonesia has been going strong in recent years. The pandemic might put a hold on its economic growth, but it is relatively stable compared to other Asian countries. 

In fact, Reuters reported Indonesia as the fastest Southeast Asian country in terms of economic growth. The report is based on improved investment, the rise in Indonesia’s GDP, and not to mention the increase in government spending.  

Although this happens in the third quarter of 2022, it shows Indonesia maintains its economic stability during the pandemic. The upcoming years with the threats of the economic slowdown, may not be as bright as before the pandemic. However, based on Indonesia’s achievements so far, most likely, Indonesia will not suffer much from it.  

The governor of Indonesia’s central bank forecasts Indonesia’s economic growth in 2023 will reach 4,37%. This is lower than the 2022 achievement at 5,3%. However, it is still positive progress considering the challenges.  

 

  • Middle-Class Dominates Population 

 

 Generally speaking, the economic strength lies in the hands of middle-class people. They have the power to drive the market with their buying power. Any change in the market demand is most likely a result of their buying power. 

Any investor should realize that middle-class people benefit you since they could help to create a market for your product. They also have an important role in economic growth. Middle-class people support inclusivity in economic institutions. They drive efficiency in economic governance, which in the long term, will enhance economic growth. 

Indonesia’s population is large, and middle-class people dominate it. The World Bank records that in 2022 Indonesia will have 115 million middle-class people. It is predicted the number will grow each year to reach 12% growth. Based on the data, it is undeniable that Indonesia has become an upper-middle country in the global market

 

  • Support from Free Trade Agreements and Treaties 

 

As an active member of ASEAN, Indonesia maintains a good relationship with its neighboring countries. Knowing that Indonesia and all ASEAN members have trade and tax agreements is beneficial for your business. 

Based on these agreements, Indonesia has the right to export commodities to other ASEAN members at lesser tariffs. ASEAN Free Trade Agreement could give an 8% up to 25% tariff reduction on any Indonesian commodities export.  

Other than with ASEAN members, Indonesia also has a free trade treaty with other countries, such as: 

  • Australia and New Zealand 
  • China 
  • India 
  • Korea 
  • Japan 

These free trade agreements and treaties mean that you have a better chance of exporting your products to a larger market. It gives you a bigger opportunity for higher profit.  

For long-term investment, you need both stability and profit opportunities. From the information above, you can see how Indonesia has a good chance for your investment.   

 


Variety of Business Opportunities in Indonesia for Your Investment 

Indonesia has checked off all the criteria for a good place for investment. Then, what are the business choices that you have? Find out the investment choices for these promising businesses.  

 

1. The Thriving Marketing of Digital Marketing with Arfadia (PT Arfadia Digital Indonesia) 

 

Investment in Indonesia - Arfadia
Investment in Indonesia – Arfadia

 

Indonesia offers many business potentials that should not take for granted. For example, it’s demographic. Indonesia is one of the world’s countries with a large number of internet users. Based on data, in 2022, there were 210 million internet users in Indonesia.  

This number is possibly affected by the pandemic with remote working and studying. However, there is a small chance that Indonesians will go back to not using the internet as before the pandemic. 

Arfadia sees this large population as a potential market for its services. 

One of Indonesia’s best digital marketing agencies, Arfadia provides full-round services. It includes website design and development, mobile and web app development, corporate branding, SEO, social media marketing, and video production.  

 

View this post on Instagram

 

A post shared by Arfadia (@arfadia)

Since Arfadia opened its doors for business in 2010, this agency has helped clients from various businesses and industries. Placing your investment in a well-round digital agency brings better future growth opportunities. You can contact Arfadia directly through their contact email or check out their past works on these channels below.

PT. Arfadia Digital Indonesia

 

2. Tourism Investment with Candi.id 

Investment in Indonesia - Candi
Investment in Indonesia – Candi

The Island of Gods, Bali, Indonesia, is more famous than the country itself. In 2019 alone, there were 6,29 million tourists recorded visiting Bali.  

In 2022 after the pandemic, tourism began to recover. From 2022 until September, Statista recorded there were 1,19 million tourists recorded visiting Bali.   

@candi.id.official Ini dia iconnya Pulau Dewata, Danau Beratan😍 #fyp #bali #baliliving🌴 ♬ Beautiful – Bazzi,Camila Cabello

Bali does not only offer its beautiful beaches. It also has mountains for hiking, rice fields, a lake, and other beautiful spots. It offers a complete package for any lifestyle that you choose. Bali has it all, whether it’s a serene holiday filled with yoga sessions or a wild and energetic nightlife in the clubs. 

Candi.id helps tourists to find the perfect holiday in Bali. As a tourism start-up, Candi.id wants to provide complete information on Bali’s top spots. 

@candi.id.official Spill ga nih budgetnya?🤪🤔 #naikhelikopter #helikopterbali #flybalihelicopter #flybaliheliport ♬ ALL NIGHT DUCKHEAD EDIT – Duckhead the Bedroom DJ

Using the latest technology to reach more people, Candi. Id’s social media channels are filled with the latest updates on Bali. Given a chance to Bali to recover after the pandemic, you can join Candi.id. Your investment could bring more people to enjoy Bali.  

Candi.id is available to contact through their website and social media channels below.  

 

 

3. Araca Milk to Bring a Bottle of Goat Milk Goodness 

Goat Milk Processing Manufacturer Supplier - Araca Milk
Goat Milk Processing Manufacturer Supplier – Araca Milk

Goat milk has been known for its health benefits. It may not be as popular as cow milk in Indonesia, which is why it is difficult to get. 

Although it is not popular, goat milk production still has a promising future. The latest study on goat milk production and utilization states that the demand for goat milk suppliers is considerably high, especially outside of Java Island.  

You can find some of the benefits of consuming goat milk, such as: 

  • Low Lactose Level 

Goat milk is proven to have a lower level of lactose, it could help these children to consume milk. They could still gain all the minerals contained in goat milk without the discomfort of stomach pain. 

  • Improve Nutrients Absorption 

A study conducted in 2002 found that goat milk has other benefits for our health. It improves the body’s ability to process copper and iron absorption. It brings more benefits since goat milk also improves and strengthens the immune system. 

  • Repair Malnourished Cases 

Children struggling with malnutrition require food that is high in calories, protein, fat, and nutrients. Goat milk contains all these nutrients that can help to improve malnourished cases. In Indonesia, goat milk is commonly used on children with stunting problems.  

Susu Kambing Etawa Terbaik dari Araca Milk
Susu Kambing Etawa Terbaik dari Araca Milk

It is safe to say that Indonesia has a lot to offer to investors who have plans on building foreign investment and company establishment. There are improvements that the government should make. But investors have a bigger chance to be actively involved in their creative industry. 

@aracamilk hi everyone! Look, our goat farm is very sterile😍 To produce quality fresh milk we always maintain health and hygiene on the farm! #fyp #fypシ #goat #goatmilk #susukambing #susukambingbali ♬ suara asli – Araca Milk

Araca Milk as a professional goat farm and supplier wants to distribute its finest goat milk products in a way that ensures its quality and safety. It sells the first bottled goat milk in Indonesia. 

Their main goal is to provide the best quality goat milk in Indonesia. Investing in a sustainable local business can go a long way. You can take part in Araca Milk by contacting them through these channels. 

PT. Araca Milk Industry

Business Address: Jl. Raya Singapadu No.10, Singapadu Kaler, Kec. Sukawati, Kabupaten Gianyar, Bali 80571

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Business Investment Opportunities – Indonesia has a lot to offer for investors who have plans on building foreign investment and company establishment. There are improvements that the government should make. But investors have a bigger chance to be actively involved in their creative industry. As a start, Arfadia, Candi.id, and Araca Milk can help you get to know Indonesia’s investment atmosphere. For the next steps, Indonesia still opens its door to investment opportunities. 


FAQs

1. What makes Indonesia a perfect option for business? 

Indonesia has several potentials for business that you can gain: 

  • A big market that will keep on growing 
  • The government aims to increase foreign investment, hence supportive investment regulations 
  • A stable and growing economy 
  • Growing population, especially on middle-class population 

2. What are Indonesia’s big 3 industries?  

Indonesia’s young population is a major cause of the growth of these industries: the digitalization industry, tourism start-up, and agricultural industry.

3. What are Indonesia’s best business opportunities?

Based on the latest data in 2022, the top industries in Indonesia are construction, mining, agriculture, manufacturing, energy, tourism, and digital. And business opportunities at Arfadia, Candi.id, and Araca Milk, which is perfect for investment.

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