After overcoming the Asian financial crisis in 1998, Indonesia developed into a vibrant democracy with the largest and most dynamic economy in Southeast Asia. The country’s GDP has grown at a consistent pace at just above five percent in the past year. Interest rates have also remained low and domestic consumption has risen — accounting for approximately 60 percent of GDP as of September 2019.
Since President Joko Widodo’s re-election in April 2019, his government has vowed to continue implementing his prudent macroeconomic policies and structural reforms to further enhance the ease of doing business and improve the country’s investment climate. This included issuing various tax incentives as well as widening the number of positions open to expatriate workers.
In this issue of the ASEAN Briefing magazine, we begin by introducing Indonesia’s business environment by highlighting the major industries that support the country’s US$1 trillion-dollar economy, as well as its tax and visa regulations. We then analyze the various tax incentives offered to foreign investors, in addition to the incentives provided in special economic zones (SEZ). Finally, we focus on corporate establishments and the set-up process investors need to follow if they are looking to establish a legal presence in the country.
With an office in Jakarta and years of experience helping foreign enterprises set up operations in the country, Dezan Shira & Associates is well positioned to assist your company in entering the Indonesian market. For more information, please email us at email@example.com