Seizing Investment Opportunities in Indonesia
Indonesia is predicted to be the worlds' 4th largest economy in 2030.
Indonesia is a very attractive investment destination. It is a country that has a big market with a relatively young population and a growing middle class. The country’s population currently has exceeded more than 260 million people, and around 44% is aged below 25 years old.Indonesia’s economy is the biggest in ASEAN. It is the only ASEAN country to become a member of the G20. In 2018, the nominal GDP of Indonesia surpassed USD 1 trillion, with the economic growth of 5.17%. According to the Standard Chartered’s forecast, Indonesia’s GDP will grow nearly ten times, of USD 10.1 trillion in 2030. By that time, Indonesia’s economy is also predicted to be larger than that of Turkey, Brazil, Russia and the G7 countries.Several renowned credit rating agencies such as Fitch, S&P, and Moody have also consistently put Indonesia in the investment grade status. Moreover, Indonesia’s Ease of Doing Business (EoDB) ranking had shown a signi?cant improvement for the past few years.
Beside simplifying the regulations and licensing procedures, the government also o?ers tax incentives. For instance, the reduction of corporate income tax is o?ered to companies that encourage vocational education, R&D activities, and create a labor-intensive industry.Why Invest in Industrial Estates?According to Law No. 3 of 2014, industrial companies are required to run its activities in industrial estates. Since then, the number of industrial estates has been growing. There are 87 industrial estates at present spread all across Indonesia, with a total area of more than 86,000 acres. Hence, industrial estates can play an important role in encouraging an equal economic development across the country.The increasing number of industrial companies operating in the industrial estates can also be seen as the increase in investment value, both from domestic and foreign investors. Investments in Indonesian manufacturing sector has certainly helped boost the export value of the country, as seen from the rise of the non-oil and gas export percentage, from 75.99% in 2016 to 90.67% in 2017. Industrial estates therefore have been signi?cant to strengthen the competitiveness of the country’s industry.There are several advantages of building a factory in Indonesian industrial estates. First is the availability of a complete infrastructure. Industrial estates have provided an easy and cost-e?ective access to electricity, water and roads since the infrastructure has been established to support industrial activities. Consequently, businesses can focus more on their core activities.It is also easier to access ports and major transportation routes for goods distribution and logistics which certainly can save time. In addition, most industrial estates also provide support for industrial waste disposal where tenants do not need to worry about complicated processes and regulations regarding it.Another bene?t of running a company in Indonesian industrial estates is the tax incentives. For instance, the reduction of corporate income tax reduction to potential investors who will locate their businesses in the industrial estate. In some regions, local governments also create incentive programs that can bene?t companies within the industrial estates. For example, VAT tax allowances for imported products or machines entering industrial estates, and customs tax allowances for goods originating from selected ports such as ports in free trade zones.
Special Economic Zones (SEZ)
The basic concept of Indonesia SEZ is the preparation of areas which have accessibility to the global market (access to the sea port and or airport). The areas are designed to maximize industrial activities, export, import and other related activities which has high economic value. Furthermore, the areas are given certain facilities and incentives in order to increase the competitiveness among the countries nearby. Both the increasing competitiveness and the incentives are expected to be the pull factors to attract investors to the region.
Indonesia Special Economic Zones are directed to fulfill the achievement of The National Priority Development Agenda:
• Instrument to improve people’s productivity and competitiveness in the international market places
• It is strenghtening the framework of a unitary state of Indonesia through alleviating uneven regional development
• The SEZs are expected to improve Indonesia’s value-added and value chain through down-streaming industrialization
• The SEZs development will increase outer island competitiveness as an investment destination, through regional infrastructure development
Development Objectives of Special Economic Zones:
• Increase investment through the provision of areas endowed with geo-economic and geo-strategic advantages
• Optimalization of industry activities, export, import and other economic activities which has high economic value
• Accelerate the regional development through the establishment of new economic growth centers to balance the development among regions
• Embodying a breakthrough in the regional development model for economic growth, namely industry, tourism and trade to create job opportunities
SEZ Facilities and Incentives:
- Ease of doing Business
- Tax Incentives
- Import Duties & excise
- Traffic & movement of goods
- Immigration
- Employment
- Land titling & property access
Why Choose SEZ Tanjung Lesung
- The closest SEZ from Jakarta, Capital City of Indonesia
- The planned construction of Toll Road Serang - Panimbang is completed in 2023
- After the Toll Road finished, it takes only 2 hours of driving from Jakarta
- KEK Tourism with supporting industries
- An area of 1,500 hectares
- Near to Banten Seaport
- Attractve price
- Invest from Villa, F&B, Hotel, Tourism until Industrial Estate
For more info about investing in Special Economic Zone Tanjung Lesung just contact us, Ray White Green Garden as Official Sales Agent of SEZ Tanjung Lesung by email us: raywhite.greengarden@gmail.com or click link below through WhatsApp.
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