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This chapter provides you with everything about investment in Indonesia. If you wish you could even download application forms for investment. Some supporting data provided.

HUGE POTENTIAL, SIZABLE DOMESTIC MARKET

With a total population of 210 million persons, which was just reached in the early 1997, and a fast-growing middle class (totaling around 35 millions), Indonesia is indeed a huge, potential market. As the people welfare improved, demands for goods and services do not merely rely on quantity, but quality, variability, and on-time availability.     

 

VAST, HIGHLY DIVERSIFIED NATURAL RESOURCES

The abundance of Indonesia's natural resources is evident in all sectors, particularly land resources, mines & minerals, agriculture/plantation, marine & fishery, forestry, and natural scenery. Utilization of the natural resources along with maintenance of their long-terms benefits has fueled the national development in all sectors during the last few decades. Processing industries for estate crops, horticultural crops, industrial plantation forest, mineral deposits, brackish water culture are among other of promising business in the country.     

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COMPETITIVE AND PRODUCTIVE LABORFORCE

The Government of Indonesia pays special attention to the development of human resources, including the productivity of workers. During the period of PELITA VI (1994/1995 - 1998/1999), value added per worker is expected to grow - on the average - by 3.3% annually. The increase of workers' value added for three major sectors are 2.4%/year for agriculture, 3.7%/year for industry, and 1.9%/year for services.

The World Competitiveness Report (1995) revealed that percentage of 20-24 year olds enrolled in higher education of Indonesia is about 10%, which is higher than those of Malaysia (7.0%), India (6.0%), and China (2.0%). You may have a look at the Indonesia's laborforce profiles.

Although the UMR (Upah Minimum Regional - Regional Minimum Standard Wage Rates) have been increasing from year to year as the people's standard of living is better-off through time, it is however still quite competitive compared to those of other Asian countries.     

 

STRONGER ECONOMIC BASE

Indonesia is undergoing a transformation from agricultural-base economy to an industrial-base economy. Manufacturing industry has become the backbone of Indonesia's export drive. Changes in composition of GDP by sectors during the 1980s and 1990s showed that such situation is true. Ever-increasing volume and value of industrial products have made the national economy not depended merely on oil & gas exports. Since mid-1980s, non-oil & gas export revenues have been jumping up beyond the oil & gas exports; and during the last-few year oil & gas export revenues constitute even less than a quarter of the total export income.   

 
 

 



Reports


For further information:

Investment Coordinating Board

(Badan Koordinasi Penanaman Modal - BKPM)
Jalan Jend. Gatot Subroto No. 44
Jakarta 12190
Indonesia

Phone: (+62-21) 525-2008, 525-2649, 525-4981
Facsimile: (+62-21) 525-4945
Email: sysadm [at] bkpm.go.id
website: www.bkpm.go.id
P.O. Box 3186 Jakarta

 

 


 

 

 

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