Indonesia

Following a decade of growth at an average rate of 6% per year, Indonesia’s economy faced external and internal challenges in 2013. As the world’s 16th-largest economy in 2012, with a GDP of Rp824trn ($824bn) and a population of 247m citizens, Indonesia has strong fundamentals for long-term growth. While the sharp reversal of foreign portfolio investment (FPI) flows from May 2013 emphasised...

Rising capital values, favourable interest rates and strong demand have created a promising environment for Indonesia’s real estate sector, which posted impressive expansion numbers in 2013. While the US and EU have struggled with the lingering effects of the global financial crisis, South-east Asia has powered on, with Indonesia topping the list of the world’s fastest growing luxury real estate...

Banking remains a highly profitable sector in Indonesia despite being limited in its reach. Leading banks’ average profits were the highest amongst major economies in 2012, according to Bloomberg data, a remarkable feat in an era of falling bank profits globally. Credit plays a modest role in the Indonesian economy, with loans amounting to 32.85% of GDP. This is considerably lower than in many...

The Guide offers readers useful facts for visitors, including business etiquette, procedures for obtaining a visa, and tips for transport. It also contains a list of suggested hotels as well as the locations and phone numbers for embassies, hospitals, travel agencies and other important contacts for visitors. This chapter also features a guide piece on Indonesia’s Komodo National Park, home to...

With a legal viewpoint from OBG partner, Todung Mulya Lubis, Senior Partner, Lubis Santosa & Maramis, this chapter navigates Indonesia’s legal framework, with focus on anti-corruption measures and other updates that may affect businesses and potential investors.

Featuring a tax viewpoint from OBG partner, Ay-Tjhing Phan, Tax Leader, PwC Indonesia, this chapter gives an overview of the tax system in Indonesia, with focus on changes to the tax system in recent years and regulations for potential investors.