Indonesia

The provision of infrastructure is an important issue in the effort to support economic activity in many countries, including Indonesia. In order to drive the wheels of the economy and spur economic growth, adequate infrastructure is an absolute necessity.

With growth exceeding 6% annually, economic fundamentals are sound and the market does have confidence in the stability and continuity of positive growth. For a country with close to 250m people and abundant natural resources, Indonesia is certain to be a huge market for the future, especially as more than 100m have already been raised to middle...

In May 2011 the Indonesian government announced its new master plan for the country’s economic development, from an emerging to an advanced economy.

Back in May 2011, the Indonesian government unveiled its new development programme for the 2011-25 period. Known as the Master Plan for Acceleration and Expansion of Indonesia Economic Development 2011-25 (MP3EI), the ambitious scheme aims to boost the nation’s economic growth through the creation of six economic corridors, one of which includes...

The Indonesian tax system continues to evolve but for several years has been mainly based on three primary tax laws – the General Tax Provisions and Procedures Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. These tax laws are routinely amended to accommodate the rapidly changing business environment and to...

As in other parts of Indonesia, poor infrastructure is a main cause of high transportation costs in East Java. Bottlenecks at ports and inadequate roads and railways make the cost of transporting goods in and out of the province higher than in other areas.