When it comes to foreign investment in Indonesia, the country was the second biggest to receive venture capital investment in Southeast Asia after Singapore, with a total amount of US$136 million in 2017.
The country itself has been labeled as “Asia’s next big Opportunity” supported by the fast-growing economy amongst G-20 countries.
Moreover, almost 70% of Indonesia’s population consist of people under 39 years of age with the labor force around 122 million, leading it above America and the global average.
On top of it, the consumer spending rate in Indonesia is 6.4% which is faster than Brazil, Turkey, Malaysia, and Russia.
With all the characteristics, no wonder the foreign investment in Indonesia continues growing more and more rapidly.
Jakarta may be one of the most predictable options for foreign investment as well as starting a new business. However, the manufactures or property may cost quite expensive, and you should consider another city such as Semarang.
Read on to learn more about Semarang and why it is an attractive destination for foreign investment in Indonesia.
Located in the heart of Java island right next to Indonesia’s maritime track, Semarang could be the best option that can provide important access to other big cities such as Jakarta and Surabaya as well as to international’s business market.
Semarang also offers a relatively lower cost of manufactures rather than Jakarta and Bali, which should be one of the most considerable things before starting a business.
Aside from that, Semarang also offers you a relatively laid-back environment, something that Jakarta doesn’t offer because of its overcrowding environment and traffic jams, among others .
In addition, 31% of startups in Indonesia are based in Semarang, which opted Semarang to be one of the best foreign investments to expand your businesses.
Back in late 2019, there were 11 companies already invested in multiple sectors in Semarang, including hospitality, construction, trading, property, and health. Those investments were conducted via Semarang Business Forum, and it proves that Semarang has such a huge potential to be the next big city in Indonesia.
Behind its prospective potential, unfortunately starting a business in Semarang, or in other cities in Indonesia for that matter, might not be as easy as you think it is.
You have to consider several requirements, especially on company type, before establishing one. The most common type for foreign investors is PT PMA as it offers up to 100% foreign ownership and allows the employment of foreign workers.
Another thing to take into account is market’s diversity that also adds up to another challenge, with its different races, tribes, religions, and values all having their own business needs.
If you prefer not to rather than starting a whole new business with its complicated bureaucracy and laws involved, it is better to consider business incorporation by cooperating with a local partner and let them handle the market.
Cekindo offers you a wide range of solutions and services to help your needs and achieve your goal strategically.
Professionals and experts are ready to help you research the Semarang market as well as assisting you in company registration, securing business licenses, work permit application and more.
Let us know your business needs by filling in the form below. Our team will be in touch with you shortly.