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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 ...
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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.
In a momentous leap forward, Indonesia has recently become an upper-middle-income nation, marking a significant milestone in its economic growth journey. This remarkable feat, characterized by increased gross national income (GNI) per capita, solidifies Indonesia’s position as a burgeoning economic powerhouse in the Southeast Asian region.
As Indonesia continues to forge ahead on its path of progress, the world watches with anticipation to witness the manifold opportunities for this dynamic nation.
In this article, we will explore the factors behind this milestone and its potential implications for the nation’s economic landscape.
With the ending of the COVID-19 pandemic in Indonesia, the largest archipelago country has regained its status as an upper-middle-income country.
Indonesia’s gross national income (GNI) per capita reached USD 4,580 in 2022. As the World Bank database reported, the number shows a significant increase of 9.8% from the previous year with USD 4,140.
The GNI per capita measures the sum of money a nation earns divided by its population.
This successful growth has led to Indonesia reacquiring its upper-middle-income country status.
Despite the positive update, Indonesia still needs to achieve the status of a high-income country. To obtain a high-income country status, it should reach USD 13,845.
Below are the income classifications or categories according to the World Bank from July 1, 2023, to 2024:
Previously, Indonesia achieved upper-middle-income status based on its GNI per capita in 2019. Still, due to the impact of the COVID-19 pandemic on the economy, it temporarily dropped back to lower-middle status.
Read more: Addressing Business Challenges in the Indonesian Market
The COVID-19 pandemic lasted for three years in Indonesia, resulting in severe consequences, including unemployment, poverty, income inequality, declining GDP, and reduced domestic and international trade.
Due to the restrictions and lockdown policies in various countries, investment progress in Indonesia has also slowed down, leading to considerable financial losses for the country.
The COVID-19 pandemic has affected various sectors, including transportation, tourism, trade, and healthcare, with the household sector bearing the brunt of the pandemic’s adverse effects the most.
Moreover, the World Bank’s Human Capital Index revealed that the closure of schools during the pandemic has led to a loss of learning, which will have long-term repercussions on Indonesia’s future generations.
Albeit the severe impacts of the pandemic on the economy, several factors have contributed to the return of Indonesia as an upper-middle-income country, such as the pandemic handling policies and the economic transformation during the pandemic.
Indonesia’s return to the upper-middle-income country is attributed to several factors, including:
Various instruments within the state budget (APBN) through the PC-PEN program for 2020-2022 were crucial in providing policy support during the pandemic and accelerating national economic recovery.
On the other hand, the significant impact of downstream natural resources policies has boosted export performance and strengthened Indonesia’s external balance. Indonesia is one of the few countries worldwide capable of a swift and robust recovery.
Given the positive economic trends, the government is committed to maintaining the quality of economic recovery.
In the medium to long term, the government continues to focus on structural reforms to support and expedite economic transformation, building high-value-added, inclusive, and environmentally friendly sectors.
Other than those contributing factors, the economic rebound is also shown in Indonesia’s export performance.
Indonesia exports showed positive performance in May 2023. According to data from the Indonesia Statistics (BPS), Indonesia’s export value in May 2023 it reached USD 21.72 billion. It showed a 12.61% increase compared to April 2023 and a 0.96% increase compared to May 2022.
Non-oil and gas exports in May 2023 amounted to USD 20.40 billion, indicating a 13.18% rise from April 2023 and a 1.94% increase from May 2022.
The largest non-oil and gas export destination in May 2023 was China, with USD 4.78 billion, followed by the United States, with USD 2.05 billion, and Japan, with USD 1.77 billion, with their combined contribution reaching 42.12%
Indonesia’s exports to the Association of Southeast Asian Nations (ASEAN) and the European Union countries, a total of 27 nations, have hit remarkable milestones.
Specifically, exports to ASEAN countries have surged to an impressive USD 3.97 billion, while those to the European Union countries reached a substantial USD 1.56 billion. This export surge reflects Indonesia’s growing economic prowess and strengthened trade relations with key global markets.
With Indonesia’s upper-middle-income status, Finance Minister Sri Mulyani mentioned that this achievement could attract foreign investors. Indonesia has targeted to attract IDR 1,400 trillion (approximately USD 93 billion) in investment this year.
As of the first quarter of 2023, Indonesia has already accumulated IDR 328.9 trillion in investment, with 53.8% (IDR 177 trillion) coming from foreign investors.
Given the substantial investment target, businesses interested in exploring investment opportunities in Indonesia must understand its trade and regulatory landscape to ensure their investments’ success.
InCorp Indonesia offers expert Business Advisory services, assisting your business in establishing a strong foothold while ensuring full compliance with the latest investment-related regulations.
Furthermore, investors also need to comprehend the benefits of an Indonesian Investor KITAS or stay permit, which offers advantages to those investing in the country.
The return of Indonesia’s upper-middle-income status provides momentum for the country to recover its economy post-COVID-19 pandemic. It also demonstrates Indonesia’s resilience, as it quickly bounces back after being significantly impacted by the pandemic.
With ambitious investment targets in 2023, businesses can leverage this situation to explore potential investment opportunities in Indonesia.
An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.