Indonesia keeps on the right track to improve its competitiveness. International Perception shows improvement in line with the continuous reforms initiated by the Government of Indonesia. Through economic policy reforms, Indonesia’s “Ease of Doing Business” ranking, released by the World Bank, jumped 19 ranks to 72nd from 91st. Similar to World Bank, The United Nations Conference on Trade and Development (UNCTAD) has conducted its annual survey taking data from business executives at multinational companies. The result has upgraded Indonesia from number 8 to the number 4, as a top intended FDI destination. These improvements have significantly leaded towards “Investment Grade” rated by Standard and Poor’s after 20 year following Moody’s and Fitch Rating.

The strong standpoint of reforms by the President of the Republic Indonesia is clearly applied to the technical issues. The government has been issuing 16 economy stimulus packages to boost investment, such as Setting predictable wage system, Offering more tax incentive for labor intensive industries and transport industries, Optimizing dwelling time, Relaxation of visa policy, Acceleration of infrastructure and power development, Acceleration of land licensing, and so forth.The policies aim to speed up investment process while providing greater certainty on cost and time involved and to improve coordination between ministries and regional government. The government has also revised the Negative Investment List to open up more business sectors by allowing 100 percent owned by foreign investment. In particular, the Government of Indonesia improves the investment climate for the tourism and manufacture sectors.

The government continues to listen and design regulations or policies to assist foreign investors. One of the example is the land availability has been most concerned topic addressed by potential investors. Relevant to that issue, currently the government has expanded to 32 industrial parks commencing by February 2017. Another issue is the facilities or incentives granted to the pioneer businesses. Therefore, the government has provided Fiscal and Non-fiscal facilities such as exemption of import duties, tax allowance and additional facilities for industries in Special Economic Zones. The government also provides free value added tax for importation of raw materials. Those facilities are designed to cater potential investments in the sector of manufactures.

The Government of Indonesia also prioritizes the tourism sector. Adequate infrastructure and available hospitality industries are basic needs to serve the growing number of international tourist travelling to Indonesia.  In this regards, the government had initiated the new priority destinations so called “Sepuluh Bali Baru” (Ten New Balis) which are Special Economic Zones (SEZ) Morotai, North Maluku Province; SEZ Tanjung Lesung, Banten Province; SEZ Mandalika, West Nusa Tenggara Province; Lake Toba, North Sumatera Province; Borobudur, Central Java Province; Kepulauan Seribu, Jakarta Province; Bromo-Tengger-Semeru, East Java Province; Tanjung Kelayang, Bangka Belitung Province; Komodo, East Nusa Tenggara Province; and, Wakatobi, South East Sulawesi Province. As a concerted effort to develop these areas, the government has appointed the Lake Toba Authority Board and SEZ administrators to assist end to end investment process.  The government invites more Foreign Direct Investment in wider sectors such as tourism amenities, supporting infrastructure (Roads, Airports, Seaports, Electricity/Energy Sector, Water Supply, Waste Managements, Transportation Services, and Logistics) and other related facilities. The government allows investment in Special Economic Zones to have 100 percent foreign ownership in the line of businesses which are actually open for limited foreign share based on Negative List on Investment. In addition, foreign investors in SEZs are eligible to own properties and receive residential permits.

In accordance to these currents policies, the Embassy of the Republic of Indonesia in collaboration with the Indonesia Investment Promotion Centre (IIPC) Singapore will hold The 3rd Investment Forum on 19th April 2018. The Embassy will invite the Chairman of Indonesia Investment Coordinating Board as a keynote speaker. The Chairman will disseminate these current developments and interact with the participant to generate the confidence of potential investors. Along with that, the program also covers technical information presented by selected Board of Authorities and Special Economic Zones. As a sideline, the Investment clinic is allocated for the potential investors to seek more technical investment procedures in sequence of the main program.

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