Indonesia Advantage

The question is, what is the attraction of foreign investors to invest in Indonesia? There are three factors driving companies or foreign investors to invest in Indonesia. The 3 factors are:

1. Availability of Factor Production

In the production process known the existence of factors of production. There are 4 factors of production, that is nature, labor, capital, and entrepreneur. Of the four factors of production, Indonesia has two factors that are abundant natural and labor. Nature Indonesia has a variety of wealth that is on the surface and in the earth.

Natural wealth becomes the raw material of production, this factor is the attraction of foreign investors. Then labor as a factor of abundant production in Indonesia which is the country with the fourth largest population in the world. Thus, our country provides a large number of manpower. The abundant population also makes it easier for producers to sell goods. The large number of residents facilitate investors to create markets in the country.

2. Great Area and Strategic

Indonesia territory extends from Sabang to Merauke, there are thousands of islands in Indonesia. The size of the region provides benefits for foreign investors to profit from developing various types of businesses, a large area of ​​land also provides a vast area to establish factories as production sites. Each Investor can create business in accordance with the availability of labor, natural resources, and the state of the region.

With the guarantee of manpower, natural resources, and territory means Indonesia has a strategic location as a place of business development. The strategic location facilitates economic activity. The journey of raw materials to the place of production and production to the consumer becomes easier because of the strategic location. Transnprotation facilities can be selected according to need, as well as distribution network, Investors can choose according to product characteristics.

3. Security Guarantee and Ease of Business License

Another factor of investment in Indonesia is the guarantee of security and ease of business permit. As well and strategically as a region if not supported by good security can hamper efforts to attract foreign investors. Ease of licensing required as an appealto investors. Permits that are convoluted and expensive are not favored by foreign investors.

From a legal perspective, the Government Regulation that attracts investors is the existence of fiscal incentives in Government Regulation No. 52 of 2011 concerning Income Tax Facilities for Investment in Certain Business Fields and / or certain Regions.

Indonesia’s internal conditions are influenced by the role of the government itself in which the Indonesian government seeks to provide regulations that support the entry of foreign investment and maintain economic stability, while the role of society is to improve the liveliness or standard of living so that foreign investors see the purchasing power of Indonesian society And has the potential to open a business in Indonesia.