Indonesian Business Updates

Retail Business Grows as Foreign Investor Activity Increases

Foreign investors are heavily investing in the retail sector. BKPM fully supports the growth of investment in the sector based on the revision of the Negative Investment List (DNI) in 2016. This revision is expected to increase the number of foreign investments entering the country. According to a report from the Global Retail Development Index (GRDI) 2016, Indonesia is ranked 5th based on its potential to grow within the retail business sector. Whereas in previous years, according to a survey conducted by the global consulting firm, A.T. Kearney, Indonesia was only ranked in 12th place. Throu ....

Special Team Needed to Improve Ease of Doing Business in Indonesia: Darmin

Jakarta. Indonesia needs a special team to monitor the progress of the country's ease of doing business in order to attract more foreign investment, Coordinating Minister for Economic Affairs Darmin Nasution told reporters in Jakarta, on Wednesday (25/10). "We will propose this to the president. [The team] should be under the Coordinating Ministry for Economic Affairs, monitoring the ease of doing business," Darmin said. Darmin's comments came after the World Bank released a report "Doing Business 2017: Equal Opportunity for All" in which Indonesia ranks 91 out of 190 countries ....

Indonesia Expects Slower Growth in Direct Investment This Year:

Official Direct investment in Indonesian firms from foreign and domestic sources is expected to grow more slowly this year, the country's investment board chief said on Tuesday (23/08), noting that Southeast Asia's largest economy had lost out to Vietnam in the regional competition to attract funds. Thomas Lembong, chief of the Investment Coordinating Board (BKPM), said total direct investment from both foreign and local investors will likely grow 12-14 percent annually in 2016, excluding investment in banking, oil and gas sectors. That compares with 17.8 percent growth in such ....

Indonesia negative investment list most restrictive: BKPM

Indonesias Negative Investment List (DNI) is the most restrictive regulation in the ASEAN system, Head of the Capital Investment Coordinating Board (BKPM) Thomas Trikasih Lembong said. "The DNIs revision effected in last February was the biggest step in the last ten years to open the country for investments. Yet, to my mind, the DNI still remains the most restrictive regulation in the Association of South East Asian Nations. No other country has a regulation as restrictive as that of Indonesia," Tom, as Thomas Lembong is popularly called, said after signing a memorandum of understandin ....

More Australians to Invest in Bali After Revision of Negative

Investment List An unnamed investor from Australia is planning to invest Rp 10 billion ($763,000) to open a restaurant in Bali following a foreigner-friendly revision of Indonesia's negative investment list, according to the Investment Coordinating Board, or BKPM. The list — which is known by its Indonesian acronym DNI — now allows food and beverage-related businesses to be fully owned by foreigners. Previously, foreigners were only allowed to own stakes of between 33 percent and 67 percent in such businesses, depending on their location. "The new negative i ....

BKPM Certain Brexit Will Increase British Investment in Indonesia

The UK’s exit from the European Union (Brexit) on Thursday last week has rattled the global financial market. As stocks plummeted, sterling fell to its lowest since 1985, at 1.33 per US dollar. However, Investment Coordinating Board (BKPM) Chief Franky Sibarani is optimistic that Brexit will not have a negative impact on UK investment in Indonesia because direct investments are generally long-term investments. Therefore, the UK’s decision to leave the EU would not affect existing business deals. Franky even saw this as an opportunity for the UK to increase its investment in ....

Indonesia promotes investment policy reforms in Germany

The Capital Investment Coordinating Board (BKPM) promoted Indonesias investment policy reforms in a business forum in Berlin, Germany, Monday. The business forum, which was attended by 250 German investors, was held in connection with the visit of President Joko Widodo (Jokowi), who also attended the forum. Indonesia explained in the forum about the facilities the Indonesian government will provide to all those who want to invest in Indonesia, BKPM Chief Franky Sibarani said in a press statement here Monday. Would-be investors can simply visit the BKPM office to obtain ....

BKPM invites German pharmaceutical companies to invest in Indonesia

The Investment Coordinating Board (BKPM) will invite German pharmaceutical companies to invest in Indonesia when President Joko Widodo (Jokowi) visits Germany as part of his four-European nation tour this month. "We will invite German pharmaceutical companies to expand their investment and make new investment in Indonesia as Germany is the worlds fourth largest source of investment in the pharmaceutical sector, with a total investment of US$4.33 billion," BKPM Chief Franky Sibarani said in a press statement released on Sunday. Several German pharmaceutical companies have starte ....

BKPM Supports Plan to Cut Corporate Tax

The Investment Coordinating Board (BKPM) welcomed the Ministry of Finance's plan to lower corporate tax from 25 percent to 20 percent this year. BKPM chief Franky Sibarani mentioned the policy will give positive impact to Indonesia's competitiveness. It also could attract more investments to the country. "The cut will make Indonesia's fiscal structure more competitive compared with other ASEAN member countries," he said in a press release, Jakarta, Wednesday (4/13/2016). The new corporate tax will be lower than average corporate tax in the region which is at 22.8 percen ....

Singapore, Malaysia Are Key Investment Source for Indonesia: BKPM

Indonesia's Investment Coordinating Board, known as BKPM, wants to boost investment from Southeast Asian countries this year, a senior official said. The BKPM has pointed to Singapore and Malaysia as two potential investors, with the two countries boasting the highest investment realization and highest growth among the region last year. Investment realization from the Association of Southeast Asian Nations (Asean) bloc grew 15 percent to $9.1 billion last year, from $7.93 billion a year earlier. "Singapore has long been the source of foreign investment in Indonesia. BKP ....

Revisions Made on the 2014 Negative Investment List

Indonesia on Thursday (11/02) eased foreign investment restrictions for dozens of industries in what President Joko Widodo has described as a "Big Bang" liberalization of Southeast Asia's largest economy. Indonesia relaxed rules for international firms in various sectors, including agriculture, healthcare facilities, restaurants and movie theaters. This was the first revision since 2014 to the so-called Negative Investment List, which spells out the sectors to which foreign investment restrictions apply. Thursday's announcement was not all about opening up Indonesia's i ....

Indonesia opens 35 sectors to foreigners, closes 20 others

Thirty five industrial sectors have been removed from the negative investment list (DNI), while 20 others have been added. The measures are stipulated in the 10th economic policy package released on Thursday. Coordinating Economic Minister Darmin Nasution said the policy was aimed at boosting investment, both domestic and foreign direct investment (FDI), while providing protection to small and medium enterprises (SMEs). "It means that 100 percent foreign ownership is allowed in the 35 sectors that have fully opened up to FDI," said Darmin during a press conference at the State ....

BKPM relaxes factory construction stipulations

Investors will be allowed to kick off the construction of their factories and other investment facilities without having to wait for the issuance of environmental assessment documents and construction permits under a new investment program to be launched by the Investment Coordinating Board (BKPM) next month. BKPM chairman Franky Sibarani said in a press conference on Tuesday that the board would launch a new mechanism allowing investors to begin construction while application processes for building permits (IMB), environmental licenses and other regional licenses are still underway. ....

New rule expected to boost investment commitments

The government hopes total investment commitments to Indonesia will surge by 50 percent after a new policy designed to open up several business sectors to foreign players is issued, according to a top official. The new policy will be made by revising the negative investment list (DNI). Investment Coordinating Board (BKPM) head Franky Sibarani said the opening of more business sectors would help boost investment commitments to the country by 50 percent this year. “I think with the new regulation, investment commitments could go up by 50 percent from the commitments gen ....

New business areas open to foreign investment in tourism sector

The Investment Coordinating Board (BKPM) plans to open new business areas in the tourism sector for foreign investment. The plan is to allow foreign investors to wholly own shares in seven business areas in the tourism sector, BKPM Chief Franky Sibarani said here on Wednesday. The seven business areas are restaurants, bars, cafes, swimming pool, football clubs, tennis courts and sport centers, Franky said. He said it has also been decided that foreign investors are allowed to have up to 70 percent of the shares of companies in four other related business areas , and up ....

Indonesia’s Education Gap

Jake Thomases is a public policy analyst at the Risk Analysis Research Center. Investors in Indonesia let out a small sigh of relief when Heri Sudarmanto, the director of foreign workers, announced on October 19 that foreign workers would not be required to pass Indonesian language tests after all. Just three days earlier, an official with the manpower ministry told reporters that such a test would be implemented. The language requirement, which has been proposed and rescinded more than once, is just the latest attempt to shield sectors of the Indonesian economy from outside com ....

Indonesia Aims to Ease Foreign-Investment Rules

Indonesia—Faced with sluggish economic growth, Indonesia is working on a major revamp of foreign-investment rules that could open the door for overseas companies to take bigger stakes in domestic firms and gain a foothold in new industries. Government officials aim to finish discussions on a first round of investment easing by the end of the month. Talks are focused on a list of sectors, including e-commerce and pharmaceuticals, in which the government limits or prevents foreign investment. “To me, the [list] is like a list of added imports. If we prohibit foreigners, it me ....

Indonesia hopes ranking in doing business to be double digit

Indonesia hopes its "Ease of Doing Business" ranking would be in the double digits in 2016. "The countrys target is to ensure that its Ease of Doing Business ranking in 2016 is in double digits, as it will significantly impact the investment climate in Indonesia," head of Investment Coordinating Agency (BKPM), Franky Sibarani, said at a press conference on "Investment Projection in 2016" here on Friday. The World Bank, in a report released in October 2015, had increased Indonesias ranking to 109 from 120 out of 189 countries surveyed by the bank. Indonesia's position ro ....

2016: Year of the Indonesian Startup

2016 will be a pivotal year for the Indonesian economy. The extended period of post-election policy chaos seems to have settled, and the worst of the policies have either been quietly put aside or amended to something within the bounds of sensible. 2016 will see increasing investment in technology based businesses ("startups"), both domestic and foreign. Some established economic players will experience disruption as a consequence, and pressures for status quo protection via government directives will be seen more frequently. It can only be hoped that the Indonesian government ....

Do-Cart wins first prize at Startup Weekend Jakarta 2015

The Startup Weekend Jakarta 2015 ended on Sunday with Do-Cart getting first prize, followed by Konsaato and Future of Indonesia as runners-up. The event was held at co-working space Freeware Spaces in Kemang, South Jakarta. Organised by venture capital firm Grupara Inc. and accelerator Techstars, the three-day startup coaching event and competition was participated in by 120 participants divided into 20 teams. Exceeding the targetted quota of 100 participants, despite being dominated by Indonesians, it also had participants from the US, Japan, and South Korea. Winners were cho ....

Indonesian govt wants acceleration of Mandalika resort development

Vice President M. Jusuf Kalla, when inspecting preparations for the construction of four star-rated hotels in the area Saturday, asked PT Indonesian Tourism Development Corporations (ITDC) management to accelerate the development of Mandalika which is being groomed as a world class tourist resort and special economic zone in Central Lombok, West Nusa Tenggara (NTB) province. The development of the Mandalika Special Economic Zone and Tourist Resort Area should be accelerated so that the local people could soon enjoy its economic benefits and improve their welfare, the Vice President sai ....

BKPM Eyes Foreign Ownership Expansion in E-Commerce

Foreign ownership of online marketplace platforms, such as Tokopedia and motorcycle taxi app Go-Jek, is under review by the government with an eye on expansion, a top official said. Foreign ownership of online commerce companies is currently banned in Indonesia — a regulation likely to be revised next year as part of the government's efforts to foster growth in the country's digital ecosystem. Franky Sibarani, chief of Indonesia's Investment Coordinating Board (BKPM), said the government will also place more emphasis on correctly categorizing e-commerce firms and businesses w ....

Uber spread false information: Organda

Jakarta Organization of Land Transportation Owners (Organda) has countered Uber's recent official statement that Jakarta Governor Basuki "Ahok" Tjahaja Purnama had given a green light to the ride-booking company to operate in the capital. According to Jakarta Organda chairman Shafruhan Sinungan, Uber had released false information and the agency would therefore report the company to the police. "The [information in the] Uber press release has been denied by the governor, which means that Uber tried to deceive the public," Shafruhan told kompas.com on Thursday. Shafruhan ....

Uber spread false information: Organda

Jakarta Organization of Land Transportation Owners (Organda) has countered Uber's recent official statement that Jakarta Governor Basuki "Ahok" Tjahaja Purnama had given a green light to the ride-booking company to operate in the capital. According to Jakarta Organda chairman Shafruhan Sinungan, Uber had released false information and the agency would therefore report the company to the police. "The [information in the] Uber press release has been denied by the governor, which means that Uber tried to deceive the public," Shafruhan told kompas.com on Thursday. Shafruhan ....

BKPM to Change Negative Investment List Into 'Guideline'

Indonesia’s Investment Coordinating Board, or BKPM, plans to replace its negative investment list with an “investment guideline” by April, in a move to boost capital inflows into the country. "We used to call it negative investment list, but we only completely restrict a small number of industrys in the list. Most industries are open to foreign investment,” Franky Sibarani, the BKPM chairman, said in Jakarta on Tuesday. The BKPM has since October been taking suggestions from businesses and the public about possible revisions to the list, which was initially drawn up to ....

BKPM Will Not Revise Investment Target

The Investment Coordinating Board (BKPM) stated that it will not revise the investment realization target in 2016 to support economic growth. "With investment contribution of 31 percent in achieving economic growth, the 2016 economic growth target of 5.5 percent expresses Indonesia's optimism," said BKPM chief Franky Sibarani on Tuesday, November 24, 2015. In order to support the target achievement, BKPM will not yet revise investment realization of Rp594.8 trillion in 2016 or increased by 14.5 percent from the previous target. According to Franky, the future is the "Asian Cent ....

Jokowi: ASEAN Economic Community Is Inevitable

President Joko "Jokowi" Widodo said that Indonesia could not avoid ASEAN Economic Community (AEC). Jokowi said that today's economic competition involves competition between countries instead of individuals or cities. "AEC will take off in a month. We can no longer slow it down or say we don't want it," said Jokowi on Tuesday, November 24, 2015. Jokowi said that Indonesia will not only face AEC, but also other free trade systems, such as the Trans Pacific Partnership or free trade with the European Union. Jokowi said that Indonesia will suffer losses if the country does not par ....

Visa concerns for Australians living in Bali provide an unwanted reality check

More than 10,000 Australians are estimated to live in Bali all year, or for a substantial part of it. While many consider themselves to be permanent residents, they in fact have very little legal basis for this claim. The visa challenge The Indonesian government provides Australian nationals with a number of visa options to support their “visit” to Bali. These include: Tourist visa – valid for 30 days (or 60 days if arranged in selected countries within Asia); Business visa – valid for 60 days (or 12 months for a multiple-entry business visa); Employment ....

Uber to start official company in Indonesia

Smartphone-based ride-hailing application Uber is planning to start a company in Indonesia, in the form of a foreign investment firm, an executive has said. Uber's spokesperson in Indonesia, Karun Arya, said Uber had not yet set up its corporation in Indonesia. The application's business activities in Indonesia were still coordinated through its Southeast Asia branch office, he said. Karun confirmed that Uber's plan to open its corporation in Indonesia was ongoing and it was expected that the process would be completed in the beginning of next year. "We have submitted a ....

Indonesia Emerging as New Battlefield for ICT Companies

Korean mobile companies are making inroads into the Indonesian market one after another. The Korean mobile industry anticipate that Indonesia will rise as a new mobile market since the nation has the world’s fourth largest population and its many islands gave rise to the creation of a mobile service-friendly culture. According to the Ministry of Science, ICT and Future Planning on Nov. 19, the number of mobile service subscribers stood at 303.69 million as of the end of 2013. This figure was up 7.3 percent from a year before. Its penetration rate was staying at 121.5 percent. The Asi ....

Indonesia-Australia Business Week to Deepen Commercial Ties

The largest-ever delegation of Australian ministers and business leaders will travel to Indonesia from November 17 to 20 for the Indonesia-Australia Business Week (IABW) 2015, the Australian Embassy said on its official website. Led by the Australian Minister for Trade and Investment, Andrew Robb, more than 300 Australian delegates will meet Indonesian leaders to build business links and enhance commercial exchanges in priority sectors, such as agriculture, education, infrastructure, tourism and resources. The Australian Ambassador to Indonesia, Paul Grigson said Australias tra ....

Largest-Ever Australian Trade Delegation to Visit Indonesia Next Week

More than 300 Australian business leaders and ministers will arrive in Indonesia next week in the wake of Prime Minister Malcolm Turnbull’s visit to Jakarta, as Canberra seeks to explore new business opportunities with its northern neighbor. The delegation, billed by the Australian Embassy as the largest ever of its kind, will be in Indonesia from Nov. 17 to 20 for the Indonesia-Australia Business Week event. Led by Andrew Robb, the trade and investment minister, the delegates will meet Indonesian leaders to build business links and enhance commercial exchanges in priority se ....

TPP Trade Deal a Long Way Off for Indonesia

Although Indonesian President Joko Widodo on Oct. 26 told US President Barack Obama that Indonesia plans to join the omnibus Trans-Pacific Partnership that the US has forged with 12 Pacific Rim nations, qualifying for the deal and overcoming domestic political opposition will both be major hurdles. Already, former President Susilo Bambang Yudhoyono and the opposition Great Indonesia Movement Party (Gerindra), chaired by Prabowo Subianto, Jokowi’s rival in last year’s presidential election, have criticized the president’s decision to go ahead with the TPP, as the trade pact is kno ....

Indonesia seeking investors to build SEZs

Indonesia plans to invite foreign investors to build and operate special economic zones (SEZs) to boost sluggish economic and job growth in South-east Asia's largest economy. The country currently has nine SEZs, including the Batam, Bintan and Karimun (BBK)special economic zone, and wants to build seven more in the next five years, said Mr Tamba P. Hutapea, deputy chairman for investment planning at Indonesia's Investment Coordinating Board (BKPM). Other SEZs in Indonesia include those in Palu, Central Sulawesi province - which house, among others, nickel mining companies and c ....

Reinventing Indonesia – Two Decades of Democratization

The broad sequence of events that led to the fall of President Suharto and the rise of democracy in Indonesia are well known. But few of us know the details of that period like former coordinating minister for economy, finance and industry Ginandjar Kartasasmitra and former Harvard faculty member Joseph J. Stern. Their book, "Reinventing Indonesia," shines a new light on that period, bringing forth a wealth of information about the times, while demonstrating how the actions of the period align with and inform the academic literature on democratization that has arisen over the past few ....

Indonesia Government Spending Starts to Dig Economy Out of Ditch

Unemployed for much of 2015, Firman Agung now works for the Indonesian government, racing to dig a drainage ditch through his village before monsoon rains begin. “It beats sitting around at home,” said the 32-year-old as he mixed cement under the shade of a mango tree in Pakuncen, a dusty farming village on the western end of Java island. “At least now I have something to bring home for my wife and child.” After a slow start to the year, Indonesia is speeding up government spending, seeking to stimulate an economy growing at its slowest pace since 2009. The pickup may s ....

Hamid Ansari calls for boosting trade, investment with Indonesia

Pitching for greater cooperation between India and Indonesia, Vice President Hamid Ansari today said while both countries share excellent relations, their bilateral trade and investments have not realised full potential. Addressing the India-Indonesia Business Forum in Jakarta, Ansari also said that there is a need to balance the bilateral trade between India and Indonesia.” India and Indonesia share cordial political relations, the bilateral trade and investments have not realised its full potential. India is the largest buyer of crude palm oil from Indonesia and als ....

Indonesia is the Right Place for Investment: VP Jusuf Kalla

Vice President Jusuf Kalla informed visiting Indian Vice President Hamid Ansari and the accompanying business delegation at a business forum on Tuesday that Indonesia is now the right place to invest. "Similar to India, Indonesian businesses are now spreading across the world and is also a good place for India to invest," he stated at the Indonesia-India Business Forum. He noted that Indonesia is currently intensifying its efforts to build cooperation with developing countries in the world, and therefore, now is the right time to invest in the country. In view of the se ....

Massive changes to foreign investment regulations do not bode well for Indonesia

Hot on the heels of President Jokowi's visit to the US where he referred frequently to the openness of the Indonesian economy to foreign investment, the BKPM (Indonesian Investment Coordination Board) has just made massive changes to investment regulations running to hundreds of pages. (See perka-14-tahun-2015-izin-prinsip-011015.rar, perka-16-tahun-2015- ....

Changes to manpower regulations allow for non-resident directors

Changes to Manpower regulations have just been announced (See Peraturan Menteri Ketenagakerjaan No 35 Tahun 2015) amending former regulations (Peraturan Menteri Ketenagakerjaan Nomor 16 Tahun 2015) relating to foreign workers in Indonesia. In companies with more than one director, the new rules do now not compel non-resident directors to obtain a KITAS/IMTA (residence visa/work permit). The same applies to commissioners (komisaris). However, where the foreigner is a sole di ....


IDR Tax Exchange Rates

Kurs Pajak for period
01 Jan 1970 ~ 01 Jan 1970
KMK issued 01 Jan 1970


IDR Transaction Rates

Transaction rates for 29 Mar 2017

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