Why Invest In Indonesia?

Indonesia has become a magnet for foreign investment…

Why?

Because Indonesia is the largest economy in Southeast Asia … 4th largest population in the world and has been resistant to the global financial crisis, proven by its:

Explosive Economic Growth

Indonesia’s GDP growth in 2011 was 6.5% that is higher than the United States, United Kingdom, Hong Kong, Denmark, Thailand, Germany, France, Belgium and Brazil combined…
Yes that is right… all these country’s GDP growths combined together is lower than the GDP growth of Indonesia on its own…

Political Stability

“Indonesia is among the most politically stable countries in Asia, and deserves more attention from global investors” – bloomberg.com
“Significantly, Indonesia is the only country in Southeast Asia that has bucked the trend of a democracy in trouble. Democracy is blossoming in a country that was once ruled with an iron hand.” – BKPM (Indonesia Investment Coordinating Board)
“Indonesia is as politically stable as it has ever been, we expect both domestic and foreign investors to continue” – bloomberg.com
“Indonesia is a political success story” – forbes.com

Favourable Investment Ratings

“Indonesia, in terms of sovereign risk, is better than several Western European countries,” said Jerome Booth from Ashmore Investment Management in London.

• Fitch: Awarded Indonesia investment grade status in December 2011 the agency said “Indonesia has resilient economic growth, low government debt and prudent policy.”
• S&P (Standard & Poor’s): “S&P said Indonesia’s fundamentals remain strong”
• Moody’s: Awarded Indonesia investment grade status in January 2012 – “Indonesia’s cyclical resilience to large external shocks points to sustainably high trend growth over the medium term,” said Moody’s in a statement.
• BBC: “The stamps of approval are likely to bring much foreign investment into south east Asia’s biggest economy.” Said the BBC in response Moody’s & Fitch’s upgrades to Indonesia’s investment status.
• IMF (International Monitory Fund): “Indonesia’s economy continues to perform well. At 6.5 percent, economic growth in 2011 was the highest in over a decade; inflation is currently within the central bank’s target range, credit growth is robust, and measures of business and consumer confidence remain strong.”
• HSBC Bank: “Overall investment climate in Indonesia is very attractive to foreign investment”

Snowballing Tourism Industry

Since 2000, on average, there have been five million foreign tourists each year who spend an average of US$100 per day.
With an average visit duration of 9–12 days, Indonesia gains US$4.6 billion of foreign exchange income annually.
4.6 Billion US Dollars would be a stack of $100 notes 5.02 Kilometres high or the equivalent height of nearly 15 and a half Eiffel towers…
Indonesian Minister for Tourism and Creative Economy Mari Elka Pangestu said the government has set a target of 8 million foreign holidaymakers for 2012
75% of Indonesia’s visitors come from the Asia-Pacific region, with Singapore, Malaysia, Australia, Japan and China among the top countries of origin.
The United Kingdom, France, and Germany are the largest sources of European visitors.
The top ten tourist destinations in Indonesia recorded by Central Statistics Agency (BPS) are Bali, West Java, Central Java, East Java, Jakarta, North Sumatra, Lampung, South Sulawesi, South Sumatra, Banten and West Sumatra (which would make it 11 provinces today due to Banten previously having been a part of West Java).
Around 59% of all visitors are travelling to Indonesia for holiday, while 38% for business purposes.
Research by the World Tourism and Travel Council (WTTC), a global organization of travel industry professionals:
The WTTC forecasts that the sector — including domestic tourism — will contribute $26 billion to GDP in 2011, 3.2 percent of the total.
However, given tourism’s effect on demand in other sectors, the council estimates that the total contribution to GDP, direct and indirect, will come to $75.3 billion, or 9.1 percent of the total.
The WTTC expects tourism to grow strongly over the next 10 years, forecasting 5.8 percent average annual growth of both sector GDP and overall economic impact. Meanwhile, it expects investment in the sector to grow by 6 percent annually, from $9.5 billion in 2011.

Source from: http://www.indonesiainvestment.org/


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