Jakarta is consistently rated one of the top ten best cities in Asia to do business. This explains why business investors who make their way to the capital are happily surprise by the vast array of opportunity before them.
Having regained its political and economic stability, Indonesia is now looking ahead to a positive business climate in 2011. The government, despite its reputation for uncertainty, has made a significant effort to restore foreigners' confidence which is crucial for business growth. Business travelers should nevertheless, come prepared with a basic understanding of cultural, social and legal matters. Business and investment in most part of Indonesia is perfectly safe. Many promising changes investment spot with a profitable market.
Considering the large number of people living in, or visiting Jakarta, anything related to the tourism industry is seen as an attractive venture for investors. As a market of fact, international hotel chains and international restaurant and coffee shop franchises are appearing all over the metropolitan area. Jakarta's per capita income is now US$3,500 compared to national average of around US$1,000. It should therefore come as no surprise that many corporations are becoming increasingly interested in Jakarta's business potential.
Sectors showing significant growth are oil and gas, telecommunications and construction. These are the industries that sustain Indonesia's economy and promise to do so for the foreseeable future. The government is also eager to begin a number of large infrastructural project such as roads, freeway, bridges and water, and power. The long term goal is to create a solid network to facilitate efficient meovement of goods in and out of the country.
The government is also strengthening investment regulations to ensure investors confidence. Lawmakers are restructuring the tax code, to make it more accessible and less prone to manipulation and fraud. These measures are meant improve accountability and to provide investors with higher level of security news for foreigners who are concerned about the protection of their assets and the repatriation of their profits from investment.
In survey conducted by the Economic Intelligence Unit in 2002, Indonesia ranked second in terms of law business costs. It is also ranked second for lowest wages and transportation costs. It also benefits from extremely low office and industrial rental costs.
Joint venture between foreign and Indonesian partners may involved legal entities (corporations) or individual persons, and must be approved by Ministry of Law and Human Rights. Nevertheless, some business field are closed to foreign investment, which mean no share may be owned by foreigners. These restricted industries include Agriculture, Fishing, Parts of the energy sectors, and of course industries related to national security. As in any foreign country, regulation and procedures may sometimes seem complex to the outsider. It is highly recommended to contact a professional investment consultant who specialized in assisting foreign companies and individuals seeking to establish a business in Indonesia.
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