An Introduction to Doing Business in Indonesia 2023
This publication, designed to introduce the fundamentals of investing in Indonesia, was compiled by the experts at Dezan Shira & Associates, a specialist foreign direct investment practice, providing corporate establishment, business intelligence, tax advisory and compliance, accounting, payroll, due diligence and ﬁnancial review services to multinationals investing in emerging Asia.
Indonesia is the largest economy in Southeast Asia with a US$1.38 trillion economy by nominal GDP, and a member of the G20. For 2023, Indonesia is expected to see between 4.5-5.3 percent growth supported by several important sectors, including commodities, infrastructure development, tourism, and manufacturing of high-value products, such as electric vehicle batteries.
Further, Indonesia is moving away from exporting raw minerals to developing its downstream industries – a move the government says will bring economic growth. The country’s most important export commodities are oil and gas, palm oil, minerals such as tin, gold, nickel, copper, bauxite, as well as coal.
The government of Joko Widodo vowed to continue implementing prudent macroeconomic policies and structural reforms to attract foreign investment. Infrastructure has been the cornerstone of the government’s policies, with the country requiring over US$400 billion of infrastructure financing until 2024.
As such, for foreign investors, entering Indonesia and taking advantage of what the country has to offer requires having a long-term outlook. After all, with a population of close to 300 million, a competitive labor market, and rising incomes, it is not a market to be considered lightly.
This publication, designed to introduce the fundamentals of investing in Indonesia, was compiled by Dezan Shira & Associates, a specialist foreign direct investment practice providing corporate establishment, audit, business advisory, tax advisory and compliance, accounting, payroll, due diligence, and financial review services to multinationals and small- and medium- sized enterprises investing in emerging Asia.