Key Reasons Why Foreign Investors Should Invest in Indonesia #StartFranchise
StartFranchise.id – Southeast Asia has become a hotspot for global investors with its growth both in the trend of consumption and with the wide market available. One country in Southeast Asia stands out from the rest. Indonesia stands out as the region’s largest economy with untapped opportunities as the country with the most population in Southeast Asia, Indonesia offers a lot of customers that could be reached. Not only a lot, but also a young population, growing middle class, and pro-business reforms make Indonesia one of the most attractive markets for global or worldwide business.
That’s why the question “why invest in Indonesia” has never been more relevant, especially for foreign investors who are trying to expand their business in the Southeast Asia market. Indonesia could be the main key on why foreign investors should invest in Indonesia before getting into the Southeast Asia market more deeply. Beside that, here are also the main reasons why Indonesia should be on every investor’s radar.
Key Reasons to Invest in Indonesia
Large and Dynamic Population
With more than 270 million people, Indonesia is the world’s 4th most populous country and also the most populous country in Southeast Asia. Its young, urbanizing population creates long-term demand for consumer goods, housing, and digital services. It also opens the opportunity for foreign investors to work together as Indonesia has also developed into an entrepreneurial country with the people wanting to take a chance in opening their own business.Consistent Economic Growth
Indonesia has maintained the Gross Domestic Product or GDP. With its growth around 5% every year for over a decade and despite global challenges such as the pandemic and other things, Indonesia’s economy stayed consistent and even reached more and more opportunities for foreign investors. This is shown in 2021 that Indonesia has gained Rp.223 trillion through foreign direct investment (FDI).Rich Natural Resources and Skilled Workforce
From minerals and energy to agriculture, Indonesia is resource-rich. Alongside the resources, Indonesia also has a growing skilled workforce which will support a wide variety of business sectors that could be opened in Indonesia. One of which is industries such as automotive, electronics, and consumer manufacturing.Improving Ease of Doing Business
The government has reformed licensing, simplified taxation, and invested heavily in infrastructure. According to the World Bank, Indonesia now ranks 73 out of 190 economies in its Ease of Doing Business index.Expanding Domestic Market
By 2030, Indonesia’s middle class is expected to exceed 90 million people, fueling demand across sectors like e-commerce, fintech, healthcare, and telecommunications, giving an opportunity for investors within the sector to get their audience.
Why Investing in Indonesia Now The Best Opportunity
For foreign investors who are in need of expanding their market into a wide variety of consumers and not just their typical consumer, Indonesia offers a rare mix of stability and growth potential. As the business world evolved all over the world, the Indonesian Government incentives now encourage all local and foreign investors to invest in high-priority sectors such as renewable energy, advanced manufacturing, and the digital economy to adjust with the necessity of today’s era in renewable and eco-friendly products. Massive infrastructure projects, including ports and toll roads to airports, are also helping in taking part in making the logistics process faster and more efficient which also strengthens the country’s role as a regional trade hub in Southeast Asia.
Not only that, Indonesia’s position within the Southeast Asia Association or ASEAN provides investors who are taking their chance in Indonesia a preferential access to one of the fastest-growing regional markets in the world. Coupled with a rapidly expanding middle class, digital adoption, and supportive government policies, the timing could not be better for international companies looking to enter the Indonesian market.
In short, when it comes to why invest in Indonesia, the answer comes to the massive opportunity from resources, the market and also the potential growth for their business. For global entrepreneurs ready to take the next step, partnering with trusted local advisors will ensure a smooth and successful entry into one of Asia’s most dynamic economies. Future investors for Indonesia can check this to find out more about the regulation and opportunities inside the Indonesia Market.
