Foreign Investment in Indonesia

Our long experience in banking and corporate finance (see our profile) puts us in the position of being able to facilitate services that would be of interest for overseas parties looking for investment opportunities in Indonesia. We have an extensive array of contacts from different companies and bridging market sectors. Our experience allows us to forge global win-win relationships, with a number of different offerings that may be of benefit for foreign investors:

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For Further information and assistance regarding foreign investment opportunities in Indonesia, please contact us here, or contact one of the following advisors:

For more general information on foreign investment in Indonesia such as local regulations, and costs, please consult the following site from the Indonesia Investment Coordinating Board: http://www.bkpm.co.id. For further details on Indonesia as a business prospect...

Indonesia - A Future Prospect

Recent results announced point to a still very decent 4% Q2 growth in GDP for Indonesia in 2009.

Even in these challenging economic conditions there have been large foreign investment ventures in Indonesia, reflecting the confidence in the country's economy (one of the more recent ventures involving a large global IT firm)

Measures adopted by the Indonesian government, and Indonesia's large domestic economy (with a population of more than 200 million), have made Indonesia one of the more resilient economies, certainly in the Asia Pacific region, but also globally. Investment opportunities in Indonesia have not become less since the 1997 Asian economies crisis.

Earlier this year, Indonesia completed the largest Asian debt sale for five years by selling $3bn in sovereign bonds in a dual-tranche transaction to fund a stimulus package aimed at mitigating the impact of the global crisis. The yields were 11.75 per cent on a $2bn 10-year offer and 10.5 per cent on a $1bn five-year offer. These were higher than expected, and both more than 8.4 percentage points higher than similar US Treasuries. Much of the investment comes from foreign investment sources.

Demand for the bonds was almost $7.25bn, showing the high level of foreign investment interest in Indonesia. With this issuance of bonds, Indonesia secured more than half its forecast external financing needs for 2009 of Rp139,500bn ($11.6bn), or 2.5 per cent of gross domestic product.

Global Confidence in Indonesia

As reported by the Economist magazine earlier this year, and with later fiscal stimulii, the Indonesian government of President Susilo Bambang Yudyhono, has so far made some good steps in keeping recession at bay in this country of more than 200 million people.

Untapped Potential

On the global scale, Indonesia has the largest gap between potential and potential realisation. Prior to the Asian Financial Crisis of 1997/8, there was some massive foreign investment in Indonesia, and GDP growth was running at 10% per annum. From 1998 Indonesia was the worst affected of the Asian region economies, but the currency (Rupiah) has since stabilised, and there has been a steady increase in growth of GDP to today's approximate figure of 5%.

The country has extensive natural resources, including crude oil, natural gas, tin, copper, and gold. Indonesia's major imports include machinery and equipment, chemicals, fuels, and foodstuffs. Indonesia's failure to realise it's potential in terms of economic growth and foreign investment is down to several barriers, which year by year are becoming less of a barrier, and more of an obstacle that can be overcome. Foreign investment opportunities in Indonesia are numerous. Positive steps are being made to fight corruption and introduce more efficient legal practices. When there are such huge opportunities for enterprise in a country, the legacy issues that hold back enterprise cannot be sustained. One way or another, the country's potential will be realised.

Editorials in major financial journals around the developed world reveal the frustration of outsiders looking in on a gold mine of opportunity, which they feel prevented from accessing for one reason or another. Those preventative factors may not be so preventative..." The services mentioned below are connected with activities we may offer with regard Mergers and Acquisitions, and other activities related to fund raising. Generally we are about connections and networking, plus local knowledge and experience. Doors are open for foreign investment in Indonesia. Facilitating connections is our strength and we also engage with Global Investments International as their local affiliate for financial products and personal wealth advice.