Indonesian Expat Entrepreneur
as an expatriate in Indonesia you probably chose to live here for a mission work, or an extended stay or retreat, preceded by one or more preliminary visits to Indonesia. Now that you have installed in your expat life, and like others who became expat entrepreneurs, you see the potential for the development of a new business in Indonesia. Surmountable startup details aside, your main challenge is to choose a company to start.
As the foundation of a new company, the Indonesian economy is quite stable. Gross domestic product ranges between 5% -6% a year, largely produced in-house since 60% of Indonesia's economy comes from domestic consumption. With a GDP of nearly $ 850 billion last year, Indonesia is 16 e the largest economy in the world after China, Japan, India and South Korea Asia. Indonesia has large commodity exports, but limited manufactured exports.
The government is slowing the natural resource exports and imports in Indonesia are relatively limited, so that economic dependence on trade with other countries is minor compared to most. Therefore, the country can withstand storms in the global economy better than others. This ability of Indonesia to conduct its internal economy means that your new business will be largely immune to global economic changes, especially if you are targeting internally growing purchasing power increasingly "class consumers "of the country.
should impress you to know McKinsey (2012) reported the consumer group in Indonesia could rise from 45 million now to more than half of the population to 135 million by 2030 -. an increase of only be exceeded in India and China by then, the economy of Indonesia will be the 7th largest in the world, larger than the economies of Germany and the United Kingdom [
Suppose you are sure to focus your new business on this consumer group more and more. this is an important target that you can narrow down. with Indonesia open class boom average at an average age of 28, youth demographic data pledge their commitment to the new technology will boom for a long time. Business drivers here have increased access to the Internet and e-commerce via mobile phones, especially smartphones, which are declining rapidly below the price point Rp.2 million. The boom is also encouraged by the wide acceptance of social media and access to new forms of personal credit.
Indonesia's population of 240 million has surpassed 300 million mobile phone subscriptions last year, the largest number of subscribers have two or more handphones. Naturally, technology startup possibilities are essentially mobile-oriented, and others are in social media, e-commerce, payment systems, digital advertising and business-to-business markets.
Many new companies have chosen the technology sector, with business creation by accelerating since 2010. Do not worry; there is plenty of open space for more.
If it seems too fast and high-tech for your taste there are many other new business opportunities in Indonesia. Beef is popular in the country, but there is limited selection of good beef products, so the quality beef is mostly imported from Australia. Why not develop a great beef here? Also, a person needs to develop a wheat variety that will survive in Indonesia to support the growing demand for wheat products.
The customer after-sales service is not a regular concept in Indonesia and the companies that provide it will generate successful businesses more easily. Exposed areas of ineptitude in Indonesia that slow things down and irritate you and other expatriates are potential areas for change.
However, seeing business and life in Indonesia move more slowly than in your home country is not a country less Indonesia. The order of life is different here. It takes some time to enjoy the local culture and find weaknesses in your business plans. Spend a few months doing reconnaissance worth the time. After that, it just comes down to do it.
As an expat you have two ways to initiate an Indonesian registered company. The most expensive way is to set up a "LDC". Some industries are allowed 100% foreign ownership in a PMA company, while other sectors need an Indonesian partner. The expensive part of the LDCs is the government requirement for US $ 1.2 million in investment; Fortunately, only 25% (US $ 300,000) is necessary for the "liberated" capital. For some, this may not be affordable and the second way is via a company "PT" with an Indonesian partner, so that the alien has no right to possess the PT in their own name. This path has naturally more risk.
Whatever business direction you choose, take the precaution of establishing relations with a recommended lawyer notaris and accounting to help protect your rights and the investment you browse the installation process.