Investing In Indonesia – Best Opportunities to Invest 2024
Investing In Indonesia – When it comes to money management, the market provides various options that you can do. Of course, each has its own benefits and shortcomings. However, among many, seeking business investment opportunities in Indonesia might be the most profitable option for you.
After the COVID-19 crisis, the world faces another challenge, and one of them is an economic slowdown. In this situation, it’s wise to do a well-thought financial strategy to avoid financial struggles in the future. In this article, you will learn more about investing and finding out the opportunity to invest in Indonesia.
Intermezzo: Saving vs Investing
Almost everyone, at least at some point in their life, must have this question flash in their mind: “How to gain money?”
The answer to that question might be limitless. However, how about spending it? Is it just as challenging?
Turns out, it’s a “yes”. Spending money is just as puzzling as gaining it.
Typically, there are three kinds of categories when it comes to spending money; actually spending it to make ends meet, saving it, or investing it.
While spending it for daily needs is necessary, people can have divided opinions when it comes to saving or investing their hard-earned assets. At which point do you have to save it, and at which to invest it? Let’s learn the difference.
Basically, saving is putting your money aside in order to have a fund that you can easily cash in. Usually, people who save money have a short-term purpose, such as building emergency funds or aiming to purchase expensive stuff.
While saving, you can also get interested at a predetermined rate. Each bank usually has a different interest rate. So, it’s a common practice to compare each bank’s interest rate and choose the one that offers the highest rate.
Meanwhile, investing is putting your money into funding assets whose value might increase in the future. Duration-wise, investing is longer than saving, with a minimum period of being 3 months.
Unlike saving, most investors do it solely for the sake of return, and the longer your investment period, the higher the return rate. Moreover, there’s a strict rule in investing, which makes it harder for investors to cash in the investments.
When Should You Start Investing?
When can you start to be an investor? Technically, you’re allowed to start investing by the age of 18. Moreover, anyone can invest regardless of gender, occupation, or even living area.
However, there’s a lot to consider before putting your money and making it grow. Before making an investment, you should at least have a certain point of income where:
- you’re able to make ends meet
- Have a sufficient emergency fund you can easily cash in
- You don’t have debts, especially ones you’re struggling to pay
Technically, you can still invest even though you don’t cross off the list. However, remember that there’s a risk in investment. Worst come to worst, you can lose your money. So it’s best to secure your fund before something happens. After all, it’s better to be safe than sorry.
Starting Business vs Investing in Other’s Business
There are various ways of investing. Each has different characteristics, a different set of rules, risks, and profitability. However, the principle is the same; to make your money grows.
Typically, it’s common to start a new business by using extra money. After all, being an entrepreneur is a kind of investment in itself.
However, how is starting your own business compared to investing in other’s businesses? Which is easier, and which is riskier?
These are the pros and cons of starting a business versus investing in another’s business.
Starting Your Own Business
(+) You have full control of how the business goes. With the right management, the chance of failure is small.
(+) Depending on your strategy, it might take more time to score profit than invest.
(-) Higher initial cost than investing. But, you can get investors to put money into your business.
(-) It does require not only high resources and skills, but also time, which makes it inflexible.
Investing in Other’s Business
(+) Investment beats inflation. In fact, the higher the inflation, the higher the possibility of a high return.
(+) Less time to score profit as price fluctuation can happen within minutes, especially if you’re into trading.
(-) You’re not directly involved with the process. Some people like to be in full control of their money.
(-) It has medium to high risk.
Actually, both options are good to grow your money with. It all depends on your preference, amount of resources, skills, and time.
Investing in Indonesia: Is It Profitable?
Investing In Indonesia – If you’re more interested in investing, you should give Indonesia a chance. Below are five reasons why Indonesia can be a potential country to invest in.
1. Indonesia is a Big Market, and it’s Still Growing
According to the World Bank, as of 2021, Indonesia’s population is more than 276 million. Due to that, the country is now sitting as the 4th most populous country in the world.
If you think the number is high, then you should know that Indonesia’s population is still gonna grow. Still according to World Bank, Indonesia’s population grows slightly more than 1% yearly. That means the country will have 2-3 million more people each year.
The increase in population can mean a lot. But most importantly, it means a huge number of potential customers. Moreover, it also means the availability of manpower to help expand your business.
2. Relatively Stable Economic State
One of the most important factors you should consider before investing in any country is its economic and political stability. Luckily, Indonesia has all of those.
In the past year, Indonesia has sets a milestone for the fastest economic growth in South-East Asia with 5% growth. Moreover, one of the factors is the rising in investment value.
Historically, Indonesia also had a relatively stable economic state, even during the 2008 global crisis. Moreover, in the face of the possibility of a 2024 recession, economists predict that Indonesia will have a little slowdown. However, it will not impact the whole economy.
Looking at the facts, you can see that Indonesia has a stable environment economically. it’s a promising situation for investors, especially if you aim for long-term ones.
3. Plenty of Natural Resources
As the largest archipelagic state near the equator, Indonesia has various kinds of natural resources. The country’s natural richness ranges from gas, stones, gold, and liquid to crops and plantations.
According to World Bank, Indonesia scored a total GDP of 1,186 trillion in 2021. In line with that, Statista reports that more than 13% of that number is supported by the agriculture, forestry, and fishing sectors, and the mining sector contributes more than 8%.
That data proves that Indonesia is an important location, especially if you want to invest in the natural resources business.
4. Supportive Government Regulations to Enter The Market
In 2008, Indonesia scored an all-time low of 129 in the Ease of Doing Business index. That means, among 209 countries in the world, Indonesia’s market is so hard to penetrate because of its regulations.
The number gets lower over the years. In 2014, Indonesia came in the 117th, and a year later, the country went down by three ranks to 114.
Luckily, in 2021, Indonesia scored 73rd globally, way lower than how it was back then. It means the government of Indonesia has created various regulations that ease the businessmen and investors to build a business in the country.
5. Increasing Middle-Class Population
The rising of the middle class in the country may mean nothing to anyone who is not keen on the economy. However, the relationship between the middle class and economic development is something an investor should know.
Theoretically, the middle class holds a strong impact on economic development in a lot of ways.
First, it boosts the level of demand for all types of products. In other words, it pushes the level of transactions even higher than before.
Second, the middle class also typically supports market inclusivity, as well as producing more entrepreneurs. Usually, the middle class also has a “never give up mindset”. Combined, all these traits make the competition healthier.
According to World Bank. since 2002, Indonesia’s middle class has increased by 12% each year. Moreover, they also state that around 115 million middle-class reside in the country. And now, in 2022, the government has announced Indonesia as an upper-middle country.
Combined, all five reasons truly depict the economic situation of Indonesia which openly welcomes new investors to the market.
Where to Invest in Indonesia?
Investing In Indonesia – Now that you know the potential of investing in Indonesia, let us show you three companies you should invest in the country:
1. Digital Marketing Agency: Arfadia (PT Arfadia Digital Indonesia)
In 1995, the first digital marketing activity ever was unsuccessful due to the low number of internet users. However, such a problem would not occur again today, as the number of internet users and mobile penetration is increasing each year.
According to Statista, as of July 2022, there are more than 5 billion internet users globally. Among them, 4,7 billion users are also social media users. Meanwhile, in Indonesia, there are 210 million internet users and which makes it 76% of the whole population.
The number indicates that there’s a growing market in the digital aspect, which creates a perfect environment for digital marketing agencies to flourish. that’s why investing in one is a good option.
Arfadia is one of the best SEO services and digital marketing agencies in Indonesia. What Arfadia offer is a great variety of digital service, including but not limited to website and mobile app optimization, digital marketing, corporate branding, and many more.
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Business-wise, Arfadia serves a variety of clients for the last decade, and it will continue to do so. Now, Arfadia invites you to invest in their company and flourish together in the Indonesian market. If you’re interested, simply reach them at the links below.
Website : https://www.arfadia.com/
Instagram : https://www.instagram.com/arfadia/
Whatsapp : +628118867897
Twitter : https://twitter.com/arfadia
Email : [email protected]
Youtube : https://www.youtube.com/user/ArfadiaMedi
2. Bali’s Touristic Media Platform: Candi id
The Island of Gods, Bali, is one of the most popular destinations in the world. So popular that in 2019 alone, the island recorded 6,29 million arrivals from both domestic and foreign tourists.
Despite the number, Bali still has a lot to offer in terms of tourist destinations. There are beaches, mountains, seaside clubs, waterfalls, and even lakes to fit everybody. But the challenge lies in the question, “How do tourists find them?”. That’s when Candi plays a part.
Candi is a start-up media company that gives information about Bali’s latest news, especially Bali’s tourist destinations. Thousands of followers have followed and interacted with Candi to discuss Bali’s tourist spots.
@candi.id.official Beautiful scenery, cool atmosphere, it was a perfect mix!!😍 📍Alam Resto Jl. Windu Sara, Kedisan, Kintamani Jangan lupa share moment menarik kalian bareng Candi😍💯 #fyp #alamresto #alamcaldera ♬ Coastline – Hollow Coves
@candi.id.official Ini dia iconnya Pulau Dewata, Danau Beratan😍 #fyp #bali #baliliving🌴 ♬ Beautiful – Bazzi,Camila Cabello
Now, Candi wants you to participate in the journey by investing in the company. If you’re interested, reach them through these platforms:
Website : https://candi.id/
Instagram : https://www.instagram.com/candi.id.official/
Whatsapp : +628118867897
Twitter : https://twitter.com/candiidofficial
Email : [email protected]
Youtube : https://www.youtube.com/@candi2628
TikTok : https://www.tiktok.com/@candi.id.official
3. Innovative Dairy Goat Farm: Araca Milk
If you are looking for a more innovative company to invest in, Araca Milk is the answer.
Araca is goat farmland in Sikilalang, Bali. Even though they’re not the first goat farm on the island, they’re the first to introduce bottled goat milk to the Indonesian market. It means the market is still wide open for you and Araca Milk to explore together.
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There are various types of dairy goats, and Araca uses the most popular type of it, which is the Etawa goat. Etawa goat milk is famous for its health benefit, such as strengthening the immune system, revitalizing undernourished kids, and lowering the risk of cardiovascular diseases.
Using international standards as its procedure, Araca produces fresh goat milk, clean and odorless. Business-wise, one of their main goals is to make good money in a non-harmful way, both for the customers and the environment. If you need to know more, contact them through these channels. Jual Susu Kambing
Website : https://aracamilk.com/
Instagram : https://www.instagram.com/aracamilk/
Whatsapp : +628113700387
Email : [email protected]
Youtube : https://www.youtube.com/@araca-milk-susu-kambing
TikTok : https://www.tiktok.com/@aracamilk
Various business investment opportunities in Indonesia will help you grow your money. So, take advantage of that opportunity.
FAQ:
- What is the main business in Indonesia?
There are some business fields in Indonesia where you can make huge profits: Infrastructure, agriculture, mining industry, manufacturing, energy, tourism, and digital industry.
- Why we should invest in Indonesia?
Here are some reasons why Indonesia can be a potential country to invest in: Indonesia is a big market, and it’s still growing, relatively stable economic state, plenty of natural resources, supportive government regulations to enter the market, and increasing middle-class population.
- What are the 3 best investments in Indonesia?
There are three companies you should invest in the country: Goat Milk Industry and Farm (Araca Milk), Tourism Industry (Candi.id), and Digital Marketing Industry (Arfadia).