Growing Opportunities for Foreign Investors in Indonesia

2 Introduction ALBERTO VETTORETTI Managing Partner Dezan Shira & Associates A large domesticmarket of middle class consumers, competitive labor costs and an entrenched export-oriented manufacturing sector make Indonesia an attractive choice for investors looking to expand their operations in ASEAN. Recent economic headwinds notwithstanding, the country has maintained political stability, and has created a reasonably sound business environment. Indonesia’s leaders have also taken several recent steps to expedite FDI reforms and cut red-tape for potential investors. Most recently, the government in November 2018 announced a significant liberalization of the country’s Negative Investment List whereby some 54 business sectors, where foreign investment was previously either prohibited or restricted, are to be now opened up to full overseas ownership. Indonesia has also announced a raft of tax incentives for foreign investors. These include corporate income tax exemptionof up to100%across themajority of the country’s business sectors for varying periods of time depending on the amount of capital invested. In this issue of ASEAN Briefing magazine, we focus on these emerging opportunities and highlight the country’s potential as a sound investment destination, including for those looking to shift a part of their production lines from China to ASEAN. We begin by describing the tax incentives available for foreign investors in Indonesia. We next focus on Indonesia’s Special Economic Zones as potential locations for FDI projects. Finally, we analyze the growing opportunities for foreign investors in Indonesia’s lucrative e-commerce sector. 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 a t indonesia@dezshira.com With kind regards, Alberto Vettoretti Credits Publisher / Alberto Vettoretti Senior Editor / Saponti Baroowa Contributor / Vasundhara Rastogi Design / Belen Rodríguez 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. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2018 Asia Briefing Ltd. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.indonesiabriefing.com www.vietnam-briefing.com www.china-briefing.com