Welcome to Indonesia
A Land of Diverse Opportunities
Gelora Bung Karno Stadium Jakarta | @Tomfisk
Thank you for your interest in Indonesia
Who We Are
IndoFDI is a community-based consultancy group based in Jakarta, Indonesia. Our goal is to help companies and individuals seeking to do business in Indonesia.
We welcome your questions about Indonesia and particularly in respect of foreign direct investment (FDI). While we cannot claim to know everything, we do have a diverse and highly-credentialled network of investors and consultants that work with us.
We are proud of the incredible strength and resilience of our home country and we want to share that passion with you. Through supporting foreign direct investment into Indonesia our firm directly contributes to a more sustainable economic, social, and environmental future for the nation.
How We Can Help
We assist our clients in obtaining the requisite licenses and permits to operate in Indonesia. Our comprehensive market research provides customized insights as to the opportunities and risks associated with specific industry sectors. This customized research provides our customers with a distinct competitive advantage from the start.
Furthermore our team will provide a valuable introduction service to give you access to reputable business leaders and government officials who can facilitate your business goals.
Why Work With Us
Our extensive contact network comprises both prominent business executives and highly-influential government officials. We have the necessary experience to guide our clients as they enter the Indonesian market and begin to create a growth path for their business. And our broad knowledge base is a resource for clients to leverage.
Whatever stage you are at
Whatever concerns you may have
We’ll be privileged to work with you
Prambanan Temple, Central Java | @wibisanayanuar
Just to give you some ‘food for thought’. You may find our services of value if you are:
Contemplating doing business in Indonesia
Curious to understand how business works in Indonesia
Intending to establish a business entity in Indonesia
Lacking an understanding of the market potential for your product or service
Seeking to conceive a viable market entry strategy
Required to engage with an official of the Government of Indonesia
Looking for business partnership(s) in Indonesia
Ready to obtain business licenses, operating permits and/or work permits
Searching for a location for your office or manufaturing facility
Hiring local staff for your business
Appointing an in-country professional services firm(s)
Indonesia in a nutshell
Head of Government: President Joko Widodo
Government Type: Presidential Republic
Area Total: 1,904,569 sqkm (Water 4.8%)
GDP: USD 1.12 Trillion (2019)
Natural Resources: Petroleum, tin, natural gas, nickel, timber, bauxite, copper, fertile soils, coal, gold, silver
Population: 267 million (July 2020 est.)
Population Growth: 0.79% (2020 est.)
Language: Bahasa Indonesia (official), English, Dutch, local dialects
Religion: Muslim (majority), Protestant, Roman Catholic, Hindu, Buddhist, Confucian
Literacy: 95.7% (2018)
Largest FDI countries: Singapore, China, Hong Kong, Japan, Malaysia
Largest FDI sectors: Transportation, Warehouse, Telecommunication, Basic Metal, Metal Based Goods, Non-Machinery and Equipment Industry
Sources: CIA, World Bank, BKPM
Indonesia is the largest economy in South East Asia (GDP 2019: USD 1.1 Trillion. Source: World Bank). Due to recently-enacted regulatory reforms and a ‘business-friendly’ government policy framework, there is a growing and diverse array of opportunities for foreign enterprises. Indonesia offers numerous advantages over other ASEAN nations such as lucrative tax incentives, an abundance of skilled labor, a large domestic consumer class – in addition to the supportive and enabling politic environment.
For many years, engaging in foreign investment activity in Indonesia was very challenging. Overseas investors faced barriers-to-entry emanating from institutionalized corruption, complex regulations, and inconsistent tax policies.
Since the election of President Joko Widodo (‘Jokowi’) all that has changed. Jokowi is intent on bolstering Indonesia’s status in the world economy in order to ensure a prosperous future for its 260 million citizens. His policies have been aimed at achieving more than 5% annual growth rate in gross domestic product (GDP), mainly through greater foreign investment. The results to date have been impressive. Indonesia has managed to climb the ‘Ease of Doing Business’ (EODB) ladder, from a ranking of #129 in 2013 to #72 in 2018.
The government continues to improve operating conditions with a view to encouraging further growth. The President and the Indonesian Parliament are working together to streamline regulations and to offer additional tax incentives to foreign investors.
To help you understand Indonesia better, we would recommend you to visit these websites:
- Why Invest in Indonesia. Access via Investment Coordinating Board (BKPM) website.
- Indonesia Information Portal. Published by Ministry of Information & Commmunication Technology.
- Bank Indonesia, the central bank of Indonesia.
- American Chamber of Commerce in Indonesia (AmCham Indonesia)
- European Business Chamber of Commerce in Indonesia (Eurocham Indonesia)
ORMAT’s 330 MW Geothermal Power Plant in Sarulla, North Sumatra | Courtesy of ORMAT.
How We Can Help You
We offer you with a ‘window’ on the Indonesian market which will enable you to visualize what the future of your business may be in Indonesia. Our mission is to help you to make the best investment decisions and to execute your plans with confidence in Indonesia. We provide you with customized information, guide you in interacting with the right people, put the legal framework in place, anticipate and manage any foreseeable risks and give you continuous support along the way.
A brief description of our service portfolio is set out below:
While recent advancements in regulatory streamlining have greatly decreased operating complexities there are still a number of key considerations you’ll need to account for in establishing a presence in Indonesia. Our close connections with industry leaders, business executives, and government officials are the source of the detailed market insights that go well beyond the ‘off-the-shelf’ macroeconomic reports. These kinds of insights can only be gleaned through a ‘boots on the ground’ approach and an intimate understanding of local laws and regulations. Our tailored perspectives are a necessity for any firm planning to succeed in Indonesia.
Procuring operating licenses is one of the biggest ‘pain-points’ for new entrant. The Federal Government has streamlined licensing processes and implemented an “Online Single Submission” (OSS) protocol to reduce acquisition time. Although the OSS has improved the permitting experience, in reality there is still a large amount of leg work that new businesses are compelled to undertake. Regional and Provincial government permits are still notoriously difficult to procure due to obtuse and unconsolidated requirements.
Risk and Intelligence
The safety and security of our clients is our foremost priority. We ensure that you remain informed of security-related issues that may impact the continuity of your business operations and the well-being of your employees. We monitor, assess and communicate the emerging concerns with timely, accurate and relevant evaluation of all security matters – national, regional and international. We aims to augment the various security programs and risk mitigation plans of our clients in order to protect their interests and assets (incl. personnel, facilities, and intellectual property or reputation) – within the context of an overarching crisis management framework.
You need to get work permits if you plan to employ foreign staff members. Some job positions are closed for foreign workers e.g. any aspect of the human resources function and for low-level jobs. We can facilitate the process of securing work permits for your future talent pool.
Throughout the process of establishing your business in Indonesia, you will need to engage with various government agencies and personnel. Despite the government’s positive attitude towards new investors, identifying the correct agency to resolve an issue can still prove challenging. Furthermore, we have found that foreign investors have difficulty in communicating with the various government bodies given the obvious cultural and linguistic barriers.
Our experience and longstanding reputation with Federal government agencies enable us to identify the right government agencies to engage with and to get your message across in an effective manner.
Business Partner Search
More often than not it is necessary to have a local partner to help you penetrate the Indonesian market. The locals know the people, the culture, the ‘game’ and likely trends better than anyone else. We understand that finding the right local partner can be very challenging. You need to have a significant number of prospective partners in order to ensure that the search is ultimately successful.
Equipped with a system and the associated experience during our service in the embassy, we can help you identify the viable candidate partners and then facilitate the subsequent meetings (including the necessary logistical support). In addition, we will also educate you in the cultural nuances of Indonesia, so that you are well placed to make the appropriate interpretations and judgement calls.
Post-meeting, we will oversee the communications between you and your preferred business partners.
With relatively little investment, you can enjoy a continuous news update service for your chosen industry sector. We will send out updates to you whenever we identify relevant news items. Alternatively, you can establish your own criteria for this news service from us
If you finally decide to open your business here, we’ll be happy to support the administrative obligations that follow – namely tax reporting, accounting, and payroll matters. However, we are open to any other kind of assistance you might need, ranging from recruitment to procurement.
Indonesia Stock Exchange, Jakarta | @wibisanayanuar
IndoFDI is composed of seasoned business professionals, subject matter experts and noted-academics who share a common goal of helping to create employment opportunities through foreign investment. IndoFDI promotes collaboration between the Indonesian government, private companies and foreign government representatives. Below are IndoFDI founding partners. We aim to expand our team in order to meet our goal of achieving ‘better result, faster’.
Yanuar Wibisana (Yanuar) – Principal Partner
Yanuar is a finance professional with over 30 years’ experience. As a banker who has worked for HSBC, Indonesia Eximbank, Sanwa Finance, and Bank Mega he successfully established foreign operations – from initial regulatory compliance through to ongoing operations.
As the focal point of Renewable Energy investments for the Commercial Service of the US Embassy in Jakarta, Yanuar helped US companies to enter buoyant market environment in the agricultural, maritime, and forestry industries. In this post, he helped US companies to interpret information regarding Indonesia and their chosen industry sectors. Moreover, he identified potential partners and opened up necessary communications channels.
As the Government Relations Director of American Chamber of Commerce in Indonesia (Amcham Indonesia), Yanuar lobbied the Federal Government on behalf of companies from USA, Japan, Germany, and the UK. His expertise in navigating complex bureaucratic environment has led to many successful advocacy efforts.
Mulyaningsih Prawirowiryono (Lia) – Partner
Lia has more than 12 years’ business consulting and management advisory experience, with a particular emphasis on guiding international investors groups in the mechanics and realities of doing business in Indonesia. Lia has supported companies and SMEs of European and ASEAN countries in entering the market and establishing their business in Indonesia.
Lia’s consultation services comprises the managerial operations and legal aspects of the business entity. Her specialty areas include taxation and budgeting, and the cultural considerations for intending foreign investors in Indonesia. She has a deep understanding of the policies and procedures pertaining to the legal registration of a new business entity within Indonesia. Consequently she is able to define realistic timelines for completion of the company establishment process, which is of extreme value to investors.
She compiles market research reports and provides regulatory updates in accordance with the needs of foreign investor clients.
BKPM Investment Realization Q1 of 2021. (NEWS – Apr. 27, 2021)
The Investment Coordinating Board (BKPM) again released data on the achievement of investment realization in the first quarter (January – March period) for 2021 amounting to IDR 219.7 trillion, or an increase of 4.3% when compared to the first quarter of 2020. Meanwhile, when compared to the period the previous quarter, an increase of 2.4%. Read more!
PPnBM on the Delivery of Taxable Goods Classified as Luxury in the Form of Certain Motor Vehicles Borne according the Ministry of Finance Regulation (PMK) No. 31/PMK.010/2021. (NEWS – Apr. 5, 2021)
The Ministry of Finance stipulated the Minister of Finance Regulation (PMK) No. 31/PMK.010/2021 concerning the Sales Tax on Luxury Goods (PPnBM) on the Delivery of Taxable Goods Classified as Luxury in the Form of Certain Motor Vehicles Borne by the Government in Fiscal Year 2021. The stipulation of this regulation is to repeal the Minister of Finance Regulation No. 20/PMK.010/2021. In addition, this stimulus policy is believed to be able to stimulate public consumption, especially for domestic flagship motorized vehicle industry products. Read more!
Risk Management on Financial Services Authority Regulation (POJK) No.6/POJK.04/2021. (NEWS – Mar. 25, 2021)
The Financial Services Authority (OJK) has recently ratified the Financial Services Authority Regulation (POJK) No.6/POJK.04/2021 concerning the application of risk management for securities companies that carry out business activities as underwriters and broker-dealers who are members of the stock exchange. This regulation was enacted on March 12th 2021, and came into effect on March 17th 2021. Read more!
The Implementation of Activities in The Capital Market Sector on the Financial Services Authority Regulation (POJK) No.3/POJK.04/2021. (NEWS – Mar. 22, 2021)
The Services Authority Regulation (OJK) has issued the Financial Services Authority Regulation (POJK) No.3/POJK.04/2021 concerning the Implementation of Activities in the Capital Market Sector, replacing Government Regulation (PP) No.45/1995 concerning the Implementation of Activities in the Capital Market to encourage good corporate governance (GCG) of the company. Read more!
Indonesia Oil and Gas as February 2021 Updates. (NEWS – Mar. 12, 2021)
As the natural resources (SDA) of oil and natural gas (oil and gas) play important role in the Indonesian economy, their production will continue to be increased so that the contribution to the national economy is maintained. To meet the ever-increasing energy needs, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has created Indonesian Upstream Oil and Gas (IOG 2020). IOG 4.0 is a strategic plan for the upstream oil and gas industry to oversee the achievement of the production target of 1 million barrels of oil per day (BOPD) and 12 billion standard cubic feet of gas per day (BSCFD) by 2030. Read more!
Zero Percent Sales Tax Incentive on Luxury Goods (PPnBM) for New Cars According According to the Minister of Finance Regulation (PMK) No. 20/PMK.010/2021, Article 2. (NEWS – Mar. 3, 2021)
The Ministry of Finance has officially issued a new regulation regarding the provision of a sales tax incentive on luxury goods (PPnBM) of 0% for new cars. The regulation is contained in the Minister of Finance Regulation (PMK) No. 20/PMK.010/2021 concerning PPnBM for the delivery of taxable luxury goods in the form of certain motorized vehicles that are borne by the government in the 2021 budget. Thus, the government cuts PPnBM on new cars until the end of 2021 this at a tiered rate for three months. Read more!
President Joko Widodo Revoked the Presidential Decree No. 10 Year 2021 on Attachment III related to Alcohol Investment. (NEWS – Mar. 3, 2021)
President Joko Widodo (Jokowi) withdrew the Attachment III of the Presidential Decree No. 10 Year 2021 on March 2nd 2021 which regulates the opening of new investments in the alcohol-containing alcoholic beverage industry which stated in the virtual press release in the YouTube video of the Presidential Secretariat: “I hereby convey, I decide on the attachment to the Presidential Decree regarding the opening of new investment in the liquor industry which contains alcohol, I declare it to be revoked.” Read more!
The Positive Investment List (DPI) Criterias on Presidential Regulation No. 10 Year 2021 concerning the Investment Business Field. (NEWS – Mar. 1, 2021)
The Indonesian government changed the Negative Investment List (DNI) to Positive Investment List (DPI). This is stated in the derivative regulations of the Job Creation Law known as Presidential Regulation No. 10 Year 2021 concerning the Investment Business Field which takes effect from March 4th, 2021. Read more!
Management of the Energy and Mineral Resources Sector on Republic of Indonesia Government Regulations No. 25 Year 2021. (NEWS – Feb. 25, 2021)
The Indonesian government officially issued 0% royalty rules for coal entrepreneurs. The royalty exemption regulations for coal mining companies that are officially down streaming apply. This is in line with the issuance of a derivative of Law No. 11 Year 2020 concerning Job Creation, namely Republic of Indonesia Government Regulations No. 25 Year 2021 concerning the Management of the Energy and Mineral Resources Sector. Read more!
The Imposition of Safeguards Enterprises on the Import of Carpet and Other Floor Covering Textile Products on Ministry of Finance Regulation No. 10/PMK.010/2021. (NEWS – Feb. 15, 2021)
The Indonesian government officially imposes security measures (Bea Masuk Tindakan Pengamanan/BMTP) through the issuance of the Ministry of Finance of the Republic of Indonesia by the Regulation Number 10/PMK.010/2021 about the Imposition of Safeguards Enterprises on the Import of Carpet and Other Floor Covering Textile Products starting from Wednesday, 17 February 2021. Read more!
BKPM Investment Realization Q4 of 2020. (NEWS – Jan. 26, 2021)
On 25 January 2021, Indonesia Investment Coordinating Board (BKPM) has published the fourth quarter of 2020 investment realization data for the October – December period, which reached IDR 214.7 trillion or increased by 3.1% compared to the same period in 2019. In this period, the absorption of Indonesian labor reached 294,780 laborers. The data shows that cumulatively, throughout the January – December 2020, Indonesia’s investment realization performance reached IDR 826.3 trillion or equal to 101.1% of 2020’s investment realization target (IDR 817.2 trillion), consist of IDR 412.8 trillion (49.9%) of Foreign Direct Investment and IDR 413.5 trillion (50.1%) of Domestic Direct Investment, which successfully absorbed 1,156,361 Indonesian labors from 153.349 investment projects. Read more!
The New Tariff Adjustment in Palm Oil Industry on Minister of Finance Regulation No. 191/PMK.05/2020. (NEWS – Dec. 16, 2020). Read more!
Presidential Regulation Number 109 Year 2020 about The Acceleration of the
National Strategic Projects. (NEWS – Dec. 3, 2020). Read more!
Minister of Energy Resources and Minerals (ESDM) Decree about the Market Price Index of Biodiesel Fuel from Mixed Vegetable Oil into Fuel
(NEWS – Nov. 25, 2020). Read more!
Nine Infrastructure Projects Open to Investors Under Public-Private Partnership (PPP) Scheme (NEWS – Nov. 19, 2020). Read more!
Minister of Agrarian and Spatial Plan Regulation regarding the Amendment to the Location Permit Grants (NEWS – Nov. 12, 2020). Read more!
National Economic Recovery (PEN) Non-fiscal incentives towards National
Logistic Ecosystem (NEWS – Nov. 5, 2020). Read more!
The Ministry of Finance of Republic of Indonesia Reduces Export Levies on Wood Veneer from 15% to 5% (NEWS – Nov. 3, 2020). Read more!
Visas and Immigration Stay Permits in the New Normal under Minister of Law and Human Rights No. 26 Year 2020 (NEWS – Oct. 30, 2020). Read more!
Temporary Imposition of Zero Tariff of Certificate of Origin issuance for Exports (NEWS – Oct. 27, 2020). Read more!
BKPM Endorsement for Foreign Workers and Ministry of Law and Human Rights: Update Regulation on Visa & Stay Permit (NEWS – Oct. 15, 2020). Read more!
Jakarta Mass Rapid Transit (MRT Jakarta) | @wibisanayanuar
“I have had the privilege of working closely with Pak Yanuar for many years now and he has always been extraordinarily helpful and thoughtful while assisting in navigating the Indonesian market. I would highly recommend his services to anyone.”
Bryse Gabouri – CEO & Co-Founder of Electric Vine Industry
“One of the things that makes Yanuar so effective in supporting foreign investors is his ability to understand business objectives and translate culturally.”
Jason Heckathorn – CEO of Forever Oceans
“Bu Lia was instrumental in establishing a Representative Office in Indonesia for my UK company, which operates in the fast-moving TMT (Technology, Media, and Telecom) category. She facilitated the company registration process with BPKM and the tax authorities, before assuming the responsibility for managing all aspects of the Rep Office functions until I had built a local staff team.
Lia introduced me to a number of local, highly-credentialed professional services providers and provided expert guidance in the selection and recruitment of in-country employees. She also participated in the initial business development activities, using her extensive network of contacts.
Her ‘turnkey service’ approach and ‘can-do’ attitude were major elements in establishing my company in Indonesia – makasih banyak, Bu Lia!”
Paul Hemming – Director of Dirmon DPK Ltd, UK
“I have worked closely with Yanuar Wibisana while planning Telamon’s future expansion into Indonesia. Yanuar has been both very helpful and extremely resourceful in getting me accurate and timely information on commercial real estate leasing and construction costs. He was also able to connect me to excellent sources for labor rates in various parts of Indonesia. His knowledge and professionalism made the planning and budgeting process go faster and smoother. It was a pleasure to work with him.”
Oleg Gostomelsky – Managing Director of European Operations, Telamon Corporation
“Getting to know Yanuar through extensive discussions and conversations while he was at the American Chamber of Commerce was indeed a pleasure and positive experience. Yanuar has that open, friendly personality, always smiling and helpful. Those qualities without a doubt help Yanuar to develop close relationships with an extensive network of government officials and decision makers. Of course this carries significant benefits for the companies. Congratulations on this pioneering effort. I am sure this venture will turn out very successful in the future and hugely meaningful for investors.”
Arief Susanto – Corporate Affairs Director, PT. Cargill Indonesia
Wayang Kulit (Shadow Puppet) | @katrikris
Farm President & Country Director
Post date: Oct 5, 2020
Forever Oceans (FO) is a mariculture company headquartered in Virginia, US, whose mission is to provide nourishing fish to consumers around the globe through innovation. FO brings together experts and technologies in engineering, infrastructure, biology, production, marketing, and more, to offer an integrated solution for environmentally friendly mariculture.
FO is now looking for Farm President & Country Director to lead its new mariculture facility in North Sulawesi. The successful candidate will be based in Manado. I would encourage you to apply If you:
- Have proven track record as a business leader delivering results including P&L responsibilities,
- Have been a leader in a matrix organization
- Have international business expertise including government relationship building
- Speak English and Bahasa Indonesia well
Should you are interested, please send your resume to firstname.lastname@example.org. We’ll keep your interest and information confidential.
For more information about the job, please check the link below:
Coca-Cola Amatil Indonesia’s solar panel roof in West Java – the largest solar panel roof installation in a production facility in Southeast Asia | Courtesy of Coca-Cola Amatil Indonesia
If you’re interested in learning more about how IndoFDI can help you, please submit the following information and we will be in touch soon.