5 Reasons Why Foreign Investors Invest in Indonesia

Corporate Secretary Service Indonesia – The COVID-19 pandemic has shaken the global economy, including Indonesia. In an effort to rebuild the country’s economy, Indonesia has opened up investment opportunities for foreign investors. The purpose of this policy is to increase the country’s foreign exchange, open up jobs, and accelerate national development so that the country’s economy can continue to improve and even develop.

Fortunately, Indonesia is one of the countries that is often used as an investment destination by foreign investors with business visa. The reason is, Indonesia, which is the largest archipelagic country, is known to have very abundant natural resources and a strategic location. Not to mention, its economic conditions and political stability are considered quite good so that it is safe to invest in it.

However, that’s not all. There are at least five reasons why foreign investors with business visa are interested in investing in Indonesia. So, what are the five reasons? Here are the answers.

Why Do Foreign Investors Want to Invest in Indonesia?

1. Abundant Natural Resources

The first reason foreign investors invest in Indonesia is because of the country’s very strategic location. Indonesia’s natural resource wealth is unquestionable, especially in the mining sector, such as coal, oil, and natural gas. Likewise in the tourism sector, where Indonesia has many islands and geographical forms with their own beauty. Not to mention the diverse customs and cultures that always succeed in attracting tourists.

Most developed countries do have very limited raw materials, while countries that tend to develop have raw materials that are mostly not optimally used. By investing in Indonesia, developed countries do not need to import raw materials for their industrial needs, which takes a lot of time and money.

2. Abundant Human Resources

Indonesia has a workforce of around 122 million with a workforce participation rate of 69.21%. This figure is said to be higher than the US and the global average. Indonesia’s skilled workers are also said to continue to increase and are dominated by workers of productive age who are ready to work. This is in line with the increasing quality of the workforce from universities, especially postgraduate education.

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Labor wages in Indonesia are also still low when compared to wages for the same job in developed countries. This is an advantage for foreign investors with business visa to develop their capital with cheaper labor costs.

3. Economic Climate That Continues to Improve

Indonesia has managed to survive several global economic crises and even continues to increase its economic figures. This is proven by the increasing domestic investment figures, both from quarter to quarter and year to year. Among Asian countries, Indonesia has also been appointed as one of the drivers of the economy. Therefore, the Indonesian government continues to strive to improve the security and health of the economic climate and its investments in order to attract foreign investors to invest their capital.

4. Digitalization That Continues to Grow

The growth of digitalization, or the digital economy, in Indonesia also continues to grow, especially in the e-commerce sector, which is said to reach around 39% or USD 25 billion this year. Likewise, the growth of electronic money reached around 32% or USD 18 billion, while digital banking grew around 22% or USD 2.2 trillion.

5. Classified as a Country that is Active in International Activities

Indonesia is one of the countries that plays an active role in building bilateral and international relations. This is realized through Indonesia being the only country in Southeast Asia that is active in the G-20 association of countries. This can happen because Indonesia always tries and plays a role in conveying the interests of developing countries in the world.

Things like this are very beneficial for foreign investors to invest in in Indonesia. Investors will get many benefits because Indonesia is a rich, safe, stable country and has good relations with many countries.

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