Indonesia has significant potential as a destination for investment, both regionally and on the world stage. This is not a new development, considering that ever since Indonesia’s independence foreign companies have made major investments in the country to develop its resources, build infrastructure, establish manufacturing facilities for export, and provide products and services for the domestic market. More recently, however, Indonesia has emerged as an investment destination that combines an ample resource base and a growing domestic market, all of which have positioned it as an attractive choice for foreign investors.
Indonesia has been a favourite investment destination of natural resource companies. Combined with the growth of manufacturing, in light of Indonesia’s competitiveness in this area, the country is beginning to transition from being merely a source of raw materials to securing a place as a manufacturing base in its own right.
Following the nation’s transition to democracy in the past two decades, the domestic market has been transformed with the growing purchasing power of an increasingly prosperous population. This has resulted in the growth of service and retail consumer-oriented businesses that have experienced growth driven by demand.
The geographic features of the archipelago, and previous underinvestment, have also created opportunities in infrastructure development. The government has instituted an extensive framework of incentives and facilities designed to encourage and support private sector participation.
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MOHAMED IDWAN (KIKI) GANIE is managing partner at Lubis Ganie Surowidjojo
Lubis Ganie Surowidjojo
Menara Imperium, 30th Fl. Jl. H.R. Rasuna Said
Kav. 1 Jakarta 12980, Indonesia
Tel: +62 21 831 5005; 831 5025
Fax: +62 21 831 5015; 831-5018