Foreign Investment In Indonesia

Introduction

Indonesia is the largest economy in Southeast Asia. It is rich in natural resources, such as coal, minerals and metals, oil and gas, and agricultural products such as rice, rubber and cocoa. With the fourth biggest population in the world, and a growing middle class, it is expected that Indonesia's economy will continue to grow. Just between 2006 and 2015, the inward foreign direct investment in Indonesia has already quadrupled from US$4.9 billion to US$20 billion.

Source: data.worldbank.org

Investment considerations

Investment vehicles

There are generally three common investment vehicles in Indonesia used by foreign investors:

1. limited liability company with foreign investment (Penanaman Modal Asing (PMA)) status (the PMA Company);