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InCorp offers a comprehensive range of solutions to ease the company registration process and help you create a viable roadmap for your business.
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Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Granting an environmental permit in Indonesia needs an Environmental Impact Analysis (AMDAL) in advance.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the country’s complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
Learn more about the food & beverage product registration services in Indonesia
Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
Learn more about the household product registration services in Indonesia.
Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
Organizations must continuously evolve and transform to remain competitive and relevant in todays global environment ...
Companies face many opportunities and challenges as a result of a changing market and regulatory landscape ...
Adopting Environmental, Social, and Corporate Governance (ESG) practices can improve your company’s value ...
Risk Management services from InCorp Indonesia can assist companies in building confidence when making future business decisions ...
Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
Our transfer pricing services provide you with a hassle-free experience while still complying with the legal aspects of transfer pricing in Indonesia.
As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
Both natural and legal persons are entitled to open a bank account in Indonesia. Find out how to open a bank account in Indonesia, here.
InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
InCorp can help foreigners to get the driving license in Indonesia, whether SIM A or SIM C. Check out the requirements and the procedure, here.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
Foreign Direct Investment (FDI) has long been a crucial driver of economic growth and development in Indonesia. However, in recent times, the nation has faced the challenge of stagnant FDI levels, prompting concerns among policymakers and economic analysts alike.
This article discusses factors contributing to the fluctuation of FDI growth and how FDI can affect Indonesia’s development. By analyzing the factors contributing to the stagnation and examining potential solutions, we aim to shed light on the importance of revitalizing FDI for Indonesia’s sustainable economic prosperity.
The World Bank predicts a slowdown in Indonesia’s economy in 2023, partly due to a decrease in foreign direct investment. It shows a stagnant contribution to the country’s gross domestic product (GDP) compared to pre-pandemic levels.
According to the recent Indonesia Economic Prospects (IEP) report by the World Bank, net FDI is projected to rise to 1.3% GDP in 2023, an increase from 1.1% in the previous year. However, this figure remains below the 1.8% GDP recorded in 2019.
This disparity raises pertinent questions about the underlying factors affecting FDI inflows and their impact on Indonesia’s economic trajectory.
Read more: 8 Potential Cities for Foreign Direct Investment in Indonesia
Several factors contribute to the stagnation of FDI, and isolating individual elements is challenging due to numerous variables. Those factors are highlighted below points:
The higher the wage rates in a particular country, the smaller likelihood for investors to inject their funds into outsourcing labor-intensive production and vice versa.
While a country might offer low to medium wage rates, the lack of skilled labor may make investors reluctant to start their business in a particular country.
Countries with high tax rates tend to be less favorable for investors because they can reduce business profitability and returns on investment.
Investors prefer countries with advanced transportation and infrastructure to ensure a smooth shipping process within the country.
Countries with pessimistic economic outlooks are less desirable for investors to start their businesses. On the contrary, a positive economic outlook can attract investment by instilling confidence in investors about the potential for growth and profitability.
An unstable political climate introduces uncertainties for businesses and investors, causing them to adopt a cautious “wait and see” approach in their investment decisions. This approach can result in slow progress in implementing investment plans.
Essential commodities such as nickel, palm oil, or bauxite are critical in attracting FDI. The absence of high-demand commodities makes a country less visible to investors.
The volatility of exchange rates has the potential to deter investment. On the other hand, a depreciated exchange rate in the host country can incentivize more significant FDI as it lowers the cost for multinational corporations to acquire assets.
Foreign companies are frequently drawn to invest in sectors that have already attracted FDI. Conversely, countries with limited experience or a proven track record in specific investment areas may need help attracting new investment.
Limited access to non-free-tariffs barriers might be a consideration for businesses to hold their investment decisions in a particular country.
Read more: Indonesia Embraces US Investment Opportunities
An Organization for Economic Co-operation and Development (OECD) report in 2010 stated that FDI in Indonesia has played a significant role in raising employment and productivity and generating exports.
Other than economic impacts, FDI has the potential to contribute to social and environmental objectives, which might include the following:
Foreign companies bring added value and job opportunities, directly contributing to domestic productivity. They can also positively impact productivity by transferring knowledge and expertise to local companies.
The arrival of foreign investments or foreign investors’ acquisition of domestic companies can lead to changes in local labor demand, affecting employment levels, wages, and the composition of the workforce, such as gender balance and skill requirements.
With favorable market conditions, FDI can finance renewable infrastructure and contribute to reducing emissions. Foreign companies also play a significant role in disseminating renewable energy technologies across borders.
With the potential to extend far beyond the economic sphere, Foreign Direct Investment (FDI) presents enticing business prospects for actively contributing to Indonesia’s development goals. Businesses emerge as crucial allies in the government’s pursuit of growth and progress.
Nonetheless, a cautious Indonesia FDI outlook, influencing the nation’s economic slowdown, may also impact the business landscape. Skillfully navigating these economic uncertainties can help businesses stay ahead of the curve, overcoming challenges.
InCorp Indonesia stands ready to provide financial and operational resilience, offering accounting services to ensure sustainable business growth despite domestic economic obstacles.
Fill out the form to contact our consultants for expert guidance in navigating your business through economic uncertainty.
With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.