The Guide to Manufacturing in Indonesia

Introduction

Choosing if, where, and how to establish foreign manufacturing operations in Indonesia

can be a significant challenge. The archipelago’s low costs and rising stature in production

and assembly make it an attractive location for investment. However, tapping into these

opportunities requires a high degree of understanding regarding the nation’s social and

regulatory cleavages and presents numerous challenges for even the most weathered

investors.

While developing an understanding of Indonesia’s vast diversity may seem a daunting task, a

number of options are available to investors which allowentry and operations to be conducted

in a seamless manner. Key considerations in this regard include maintaining an up-to-date

knowledge of Indonesia’s corporate establishment guidelines, and a firm understanding of

the special incentives and production locations that Indonesia provides to those setting up

facilities within the country.

In this issue of ASEAN Briefing, we discuss the growing importance of Indonesia as a hub for

manufacturing within Southeast Asia, and provide guidance on how to select and establish

operations within the country. We analyze demographics and government policies driving

growth, highlight the importance of location in achieving operational success, and outline

steps required to establish foreign invested manufacturing operations within Indonesia.

Dezan Shira & Associates has a growing teamof Tax and Corporate Advisory specialists within

Indonesia and ASEAN at large with years of experience helping foreign enterprises set up

operations within the region. For questions or information on manufacturing, corporate

ues related to entering the Indonesianmarketplace, please contact

our office in Indonesia.

This Month’s Cover Art

Al-Sayed-Hasan

Acrylic On Canvas , 18 x 18 inch

Art Konsult

+91 11 65683083

rtconsult.com

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Reference

ASEAN Briefing and related titles are

produced by Asia Briefing Ltd., a wholly

owned subsidiary of Dezan Shira Group.

Content is provided by Dezan Shira &

Associates. No liability may be accepted

for any of the contents of this publication.

Readers are strongly advised to seek

professional advice when actively looking

to implement suggestions made within

this publication.