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This chapter provides you with everything about investment in Indonesia.
If you wish you could even download application forms for investment. Some supporting data provided. |
Reason #1
HUGE POTENTIAL, SIZABLE DOMESTIC MARKET
With a total
population of 210 million persons, which was just reached in the early 1997, and a
fast-growing middle class (totaling around 35 millions), Indonesia is indeed a huge,
potential market. As the people welfare improved, demands for goods and services do not
merely rely on quantity, but quality, variability, and on-time availability.
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Reason #2
VAST, HIGHLY DIVERSIFIED NATURAL RESOURCES
The abundance of Indonesia's natural
resources is evident in all sectors, particularly land resources, mines & minerals, agriculture/plantation, marine & fishery, forestry, and natural scenery. Utilization of the natural
resources along with maintenance of their long-terms benefits has fueled the national
development in all sectors during the last few decades. Processing industries for estate
crops, horticultural crops, industrial plantation forest, mineral deposits, brackish water
culture are among other of promising business in the country.
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Reason #3
COMPETITIVE AND PRODUCTIVE LABORFORCE
The Government of Indonesia pays special attention to the development
of human resources, including the productivity of workers. During the period of PELITA VI
(1994/1995 - 1998/1999), value added per worker is expected to grow - on the average - by
3.3% annually. The increase of workers' value added for three major sectors are 2.4%/year
for agriculture, 3.7%/year for industry, and 1.9%/year for services.
The
World Competitiveness Report (1995) revealed that percentage of 20-24 year olds enrolled
in higher education of Indonesia is about 10%, which is higher than those of Malaysia
(7.0%), India (6.0%), and China (2.0%). You may have a look at the Indonesia's laborforce profiles.
Although the UMR
(Upah Minimum Regional - Regional Minimum Standard Wage Rates) have been increasing
from year to year as the people's standard of living is better-off through time, it is
however still quite competitive compared to those of other Asian countries.
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Reason #4
STRONGER ECONOMIC BASE
Indonesia is undergoing a transformation from agricultural-base
economy to an industrial-base economy. Manufacturing industry has become the backbone of
Indonesia's export drive. Changes in composition of GDP by sectors
during the 1980s and 1990s showed that such situation is true. Ever-increasing volume and
value of industrial products have made the national economy not depended merely on oil
& gas exports. Since mid-1980s, non-oil & gas export revenues
have been jumping up beyond the oil & gas exports; and during the last-few year oil
& gas export revenues constitute even less than a quarter of the total export
income.
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