Bisnis Foreign Investment in Indonesia

On an international scale, Indonesia has one of the biggest gaps between investment potential and actual potential realisation. Preceding the Asian Financial Crisis of 1997/8, there was extensive foreign investment in Indonesia particularly from the likes of India, Japan and the United Kingdom, and the GDP growth rate was at an extremely healthy 10% per annum, but subsequent to 1998, Indonesia was by far the worst affected of the Asian region economies with their GDP contracting by 13.7%. The Indonesian Rupiah (IDR) has since stabilised, along with the GDP, which is currently growing at a rate of 6%.

Indonesia has the world’s third largest reserve of natural resources, and they include; palm oil, crude oil, tin, copper, gold and natural gases. Indonesia’s level of imports are higher than average in the following sectors; machinery and equipment, fuels, chemicals and foodstuffs. Indonesia’s failure to fulfil their potential in terms of economic growth and foreign investment is linked to a plethora of different issues that are slowly but surely becoming less of a barrier, and in stead becoming and easily attainable hindrance.

In Indonesia, foreign investment opportunities are plentiful plus the ever-present obstacle of corruption is becoming less of a problem due to the introduction of certain legislative measures. When there is enormous potential for diversified business ventures within a country, the issues holding back enterprise cannot be sustained. Sooner or later, Indonesia’s economic and foreign investment potential will be realised.

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