Traveling to Indonesia is no longer limited to tourism and relaxation purposes only. The country is now going through a significant transformation and has long been the largest economy in Southeast Asia. Many regions in the country, including Padang, have been so inviting for expats when it comes to doing business in Indonesia in various investment areas.
Padang lies in an important location in Indonesia, making it a natural gateway to other regions of the country and many Southeast Asian countries. The free and open economy of Indonesia has also made many investors acknowledge Padang for its great investment opportunities, supportive policy and encouraging business atmosphere.
Just recently, Bank Indonesia has enacted a new policy by reducing its BI 7-Day Reverse Repo Rate (BI7DRR) to 4.5 percent from the original 4.75 percent. The cut of the interest rates will significantly reduce companies’ cost of capital to invest in Padang. The reduction of investment capital will accelerate foreign investments in Padang and the growth of the national economy.
The best business sector for investment in Padang is no doubt the tourism and hospitality sector. The city of Padang consists of land areas and sea areas booming with many tourism-related opportunities, especially in the Gunung Padang integrated tourism area.
Between October 2019 and November 2019, the number of visitors to Padang increased by 30% in only one month. Also, between 2015 and 2018, the revenue generated from the tourism sector in Padang grew by 405%. An upward trend in the number of tourists in Padang is expected in the following years.
Lately, PT Kodel was permitted by the City Government of Padang, West Sumatra to build a hotel in the Bagindo Aziz Chan with a total capacity of 300 rooms of 4-star and 5-star. The project is expected to start in 2020.
Named as the most potential city in the tourism category in the 2018 Indonesia Attractiveness Award, the investment prospects are good in Padang.
So how can you explore the business opportunities in Padang? The easiest way is through the use of an Indonesia business visa and many foreigners have done so over the years.
With a business visa, you can do market research and expand your business network in Padang.
Furthermore, you can take part in conferences, seminars, workshops, and activities that will help make connections and build a foundation for your business. The only disadvantages are you cannot hire employees and cannot earn profits with a business visa.
Foreign investors interested in doing business in Indonesia or setting up a company in Padang should seek advice from Cekindo’s company setup specialists, as the establishment process takes several crucial and compulsory steps.
Cekindo can assist investors throughout the entire company setup process in Padang so that you can have your business legally set up in Indonesia. You can choose a legal entity that fits your investment plans in Padang:
With the recent reforms and the liberalisation of the investment policies, Padang has become one of the most popular cities in Indonesia that welcomes foreign investors to invest in boosting the local economy.
For investors in need of business visa application and company setup in Padang or assistance for doing business in Indonesia, Cekindo can be your reliable partner in these undertakings.
In addition to business setup and business visa application, Cekindo is at your disposal with a wide range of business consulting services, from business outsourcing to background check, shelf company purchase, and Special Purpose Agreement.
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