Business opportunities in Jakarta have a high level of demand in the eyes of foreign companies. Jakarta, the capital city of Indonesia, provides a convenient gateway for companies planning to enter the Indonesian market. According to the Jakarta Globe, the current largest trading partner of the country remains to be Singapore at an estimated amount of $4.7 billion. The second and the third highest trading partners are China and the Netherlands.
Jakarta Globe also reports that despite the ongoing pandemic and the various social restrictions, the number of foreign investments in Indonesia continues to climb steadily. The number of foreign investments is at $6.8 billion during the second quarter of 2020. Furthermore, the latest quarterly report on foreign investment is at $8 billion. The number is slightly lesser than the all-time highest of $8.3 billion in 2017. This stable growth points to the fact that business opportunities in Jakarta and other cities are lucrative for foreign investments.
The Road to Future Investments
Seeing the prospects and benefits of foreign investments, the Indonesian Government shifts their economic strategy to promote foreign investments. One of the ways is to introduce regulations and a system that helps to uncomplicate business permit application processing in the country. In the past, to attain a single permit, a company needed to invest a lot of money and time. The purpose of the complicated process is to force companies to opt for an ‘express service’ at a higher rate.
Nonetheless, this practice proves to be hindering foreign companies to expand their business in the Indonesian market. Instead of Indonesia, many foreign companies prefer to set their base in Singapore as it is close to Indonesia but has a clear bureaucratic route. To solve this problem, the government recently implemented an Online Submission System (OSS). This online platform functions to create transparency of information and process. With the online system, foreign investments can find reliable information on business opportunities in Jakarta or other cities. The online system also renders the so-called express services obsolete.
Another effort the local government makes to increase foreign investments in the country is by bilateral cooperation. With President Joko Widodo, currently serving as the Head of G20, Indonesia is on a prospective path for foreign investments. According to the Jakarta Globe, the country is eyeing a $32.7 billion deal after a two-day visit to the United Arab Emirates. The President himself has strongly hinted for UAE investors to invest in lucrative business opportunities in Jakarta, which are trading industries and renewable energy.
Business Opportunities in Jakarta and Preparation
Business opportunities in Jakarta are once again back on their feet after a rise in economic growth. According to the Jakarta Post, Indonesia records an increase of 3.51% of economic growth which is largely from exports contribution. With the social restrictions currently back at level 1 and offices, in general, can operate at 75%, the local economic gears are beginning to move. Although industries like transportation and hospitality are still struggling to get back on track, industries like trading and mining are on top form.
Other industry sectors also experience growth, despite at a much slower rate compared to trading or mining. This growth is seen from the rising number of companies and businesses acquiring virtual offices, serviced offices, and company registration services at MESO Serviced and Virtual Office. For foreign companies, the start of this growth can be a beneficial stage to enter the market. The pandemic provides the business environment to hit a restart button. This means that foreign companies can access more business opportunities in Jakarta or other cities in Indonesia.
To be able to have a firm grasp on the opportunity, companies must move fast and efficiently. The first step that foreign investors must prepare is company registration. Without a company, foreign investors will not be able to operate in the country. Next is to acquire a business address for the company to conduct their operation. The last step before starting their business operation is to apply for the necessary permits. All of these services are available at MESO Serviced and Virtual Office. The company have assisted hundreds of companies of both local and foreign origin since 2013.
Companies wanting to consult regarding company registration in Indonesia or other office services can visit the website at www.meso.co.id or send a message on Whatsapp at +62812-1315-4189.
