In 2019, realised investments in Riau spiked to approximately IDR 42 trillion, an almost 83% growth as compared to the previous years. The figure shown also means that Riau received the biggest amount of investments in the entire Sumatra region.
According to the Investment Coordinating Board (BKPM), the targeted realised investment was only set at IDR 24 trillion, thus the outstanding result of IDR 42 trillion exceeded the target by 174%.
BKPM in Riau province also released information that in terms of domestic investment, Riau received IDR 26.3 trillion, making it top the first place as well.
In terms of foreign investment, it was ranked second with a total value of IDR 15.5 trillion. Riau is a highly potential region for locals and foreigners looking for investments in Indonesia.
Reasons for Riau as a good investment destination are not just that. In terms of realised investment, Riau was at the 6th place, following Banten, Central Java, West Java, Jakarta, and East Java.
Most of these investments, both foreign and domestic, were mainly in the forestry sector (IDR 7 trillion), the chemical and pharmaceutical industry (IDR 7.3 trillion), the food and beverage industry (IDR 5.5 trillion), the construction sector (IDR 7 trillion), and paper and printing sector (IDR 4.7 trillion). Other sectors and industries with the most investments are mining, plantation, food crop, and husbandry.
Explore Investment Opportunities in Riau with a Business Visa
The impressive realised investments in Riau carry a lot of opportunities for foreigners to attain investment success. Hence, business opportunities in Riau are best explored with a business visa, especially if you are new to the Riau investment market.
A business visa in Indonesia is a preferable choice by most foreign investors like this type of visa allows them to visit Riau and the whole of Indonesia for business purposes regularly.
Business activities permitted under a business visa are attending seminars and workshops, expanding business networks and making connections, conducting negotiations, signing contracts, performing market surveys and others.
However, do bear in mind that you can’t use a business visa for sales transactions and hiring.
Getting a business visa for your Riau investment is simple if you are engaged with one of our visa experts.
Here are the basic requirements and procedure:
- You need an Indonesian company to issue you a sponsorship
- Then, you need to apply for a special permit known as TELEX from the Indonesian Immigration
- Complete and valid set of required documents (including the TELEX and the sponsorship letter) must be submitted
How to Start a Business in Riau
Foreigners start their Riau investment by starting a company in the province. First of all, you must choose the best type of legal structure that fits your business activities and circumstances before you incorporate the company.
If you are not sure of which type of entity you should opt for, it’s advised that you contact Cekindo right away. A wrong choice of a legal entity at the beginning is detrimental to your Riau investments in the long run.
Three common types of legal entity are available in Riau:
- Local limited liability company (PT)
- Foreign-owned limited liability company (PT PMA)
- Representative office
Invest in Riau with Assistance from Cekindo
Cekindo’s company formation specialists assist both local and foreign investors with your Riau investments in Indonesia.
Our business setup services follow regulatory steps that are compliant with the most updated legislations and laws including choosing the right type of legal entity, applying for the correct business licenses and related permits.
Setting up a business in Riau is not all difficult. It’s just that many foreign entrepreneurs are not familiar with the local regulations and that’s why we recommend you contact Cekindo with regard to your Riau investments.
Contact us via the form below to discuss your investment plan.