5 most prospective business sectors in indonesia

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5 Most Prospective Business Sectors in Indonesia Jakarta, December 2016

Transcript of 5 most prospective business sectors in indonesia

Page 1: 5 most prospective business sectors in indonesia

5 Most Prospective Business Sectors in IndonesiaJakarta, December 2016

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2For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

The Overview

Considering that Indonesian economic climate keeps improving, especially due to many reformations in bureaucracy and investment

regulation, more and more foreign investors have come and invested in Indonesia.

Those companies target this diverse country because of its huge potentials of raw materials, abundant manpower, big and complex

emerging markets, dense population with relatively great purchasing power, vast lands, etc.

In this presentation, we would like to highlight 5 most prospective business sectors in Indonesia that are expected to invite a lot more

foreign investors to expand to Indonesia.

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#1. Hotel and Tourism Industry

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The exotic landscapes of Indonesian archipelago and the beauty of its assorted cultures have hypnotized millions of travelers and adventurers all across the globe every year.

Therefore, many international hotel chains strive to get their position in the hotel and tourism industry in Indonesia,

especially in its major cities like Jakarta, Bandung, Yogyakarta, Denpasar, Medan, Balikpapan, Makasar, Surabaya, and more.

Because many of the foreign tourists arrive to Indonesia through Jakarta, Bali, and Batam Riau, those three provinces become the

most targeted areas for hotel and tourism industry.

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#1. Hotel and Tourism Industry (cont’d)

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In addition, the number of foreign tourists arrival increases steadily, reaching up to 10 million people in 2015 and keeps increasing this

year. This number elevates every year because of the visa-free regulation that the government has applied for foreign tourists from 169 countries (for a maximum stay of 30 days). Moreover,domestic travelers and business people also become the target

market for this industry. They travel mainly for business and holiday purposes, so it is obvious that hotel sectors and the

development of tourism industry and infrastructures are lucrative business areas for foreign investment.

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#2. Trading and Retail Sectors

5For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

Indonesia is listed among the emerging markets for retail and trading sectors,

together with China, United Arab Emirates, India, Kazakhstan, Turkey, and

Malaysia. In addition, the raising of middle class population in Indonesia as well

as the fast and wide-spread internet penetration among the world’s fourth

largest population also become additional attractions for foreign investors. The

best thing is that due to the challenge in distribution of goods in Indonesia,

the government focuses more on its infrastructure to bridge the connection

between areas and islands in Indonesia so that goods can be transported more

easily and effectively. This will for sure improve the investors’ willingness to

invest in trading and retail sectors in this country.

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#3. Ecommerce Business

6For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

The next growing trend for foreign investment in Indonesia is ecommerce business. For sure, the main reason is because as a populous nation, the majority of its citizens have already had internet access at hands. This will enable companies, traders, and retailers to personally reach their target markets.

Furthermore, the government also support foreign investment by introducing “trade transaction through electronic system” category in its amended Electronic Information and Transaction Law, which enable foreign investors to have a full rights of foreign ownership (up to 100%) under certain conditions, mainly depend on the amount of capital invested. For companies with less capital, 49 percent of foreign ownership is still possible, with local people as the partners.

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#3. Ecommerce Business (cont’d)

7For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

It is also projected that Indonesian e-market is closely behind China

and India with the estimation of $130 billion in 2020. With its

population become the highest users of social media in the world,

Indonesia is a unique and prospectus country for ecommerce business.

Therefore, it is no surprise that there are many ecommerce startups

start to gain their fortune in Indonesia.

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#4. Infrastructure and Construction

8For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

Indonesia’s ambition to attract and invite more foreign investors has made this country also commits to improve its infrastructure to enable better access and distribution of many goods and services in all parts of the provinces in

Indonesia. The main focus of infrastructure development is in the eastern part of Indonesia. This is a huge opportunity for foreign investors to take part in

the development. Currently, ports, airports, highways, electricity, and transportation are on the top of the list.

In addition, property is another sector that attracts many investors. The vast land and huge population, as well as the steady economic growth are the

reasons why property business opens big opportunities for investors.

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#5. Manufacturing and Agriculture

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Indonesian government opens its door for any labor intensive companies, especially in manufacturing industries. This will give

opportunities for local employment that will also give direct benefits for the local community. Several labor intensive companies in Indonesia

including garment, machinery, assembling, etc.

On the other hand, agriculture is also seen as an everlasting field of business in Indonesia, considering that Indonesia is indeed an agricultural

country since the land is so fertile and the climate is supportive for the agricultural activities. However, Indonesia still also depends on imports from foreign countries for several agricultural products, including meat,

corn, and sugar to fulfill the nationwide demands. Therefore, foreign investors focusing on agricultural products, innovations, and technology

is highly welcomed in Indonesia.

For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

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10For further info, visit: www.cekindo.com.email to: [email protected], phone: 021-80660999

HOW CEKINDO CAN HELP YOU

Cekindo dedicates its existence to assist and support foreign companies from various business sectors and company sizes to open

legal entities in Indonesia and penetrate to Indonesia’s emerging market. There are still many other sectors that also have high

potentials to develop in Indonesia. For further information, do not hesitate to send your email directly to [email protected] and we will

provide quick and reliable response directly to you.

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References:• http://www.asiabriefing.com/news/2016/03/indonesia-2016-foreign-investment-

opportunities-trends/

• http://www.cekindo.com/potential-and-risks-of-investing-in-indonesia.html

• http://www.indonesia-investments.com/business/industries-sectors/tourism/item6051

• http://www.indonesia-investments.com/news/todays-headlines/investment-opportunities-in-indonesia-s-retail-sector-lucrative-potential/item6903

• https://www.techinasia.com/indonesia-lifts-ban-on-ecommerce-investments

• https://techcrunch.com/2016/07/29/indonesia-will-be-asias-next-biggest-e-commerce-market/

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Our Vision

To be leading consulting firm of business servicesto clients expanding and operating in Indonesia.

Our Mission

To provide full-range of market-entry andcorporate services to enable our clients to focuson their core business and activities in Indonesiaand beyond.

PT. Cekindo Bisnis Grup is aleading consulting firm ofMarket-Entry and Corporatesecretarial services to clientsexpanding and operating inIndonesia and further toSoutheast Asia.

Our ValuesClient-focusedExcellence performanceKnowledgable locallyIntegrity moralNormative operations standardsDelivered on-timeOne stop services provider

Company Profile

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Our main services:

Business Set Up

Business Process

Outsourcing

Local Representation

Company Registration

License & Product Registration

Market Research & Analysis

Local Partner Selection

Trade Mission Land & Property

Ownership

Recruitment & HR Establishment

Payroll Management

Accounting & Tax Reporting

Visa & Work Permit

Mystery Shopping

Local Distributor & Partner

Buying Agent Office Space

Cekindo Services

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Senior AdvisorProf. Dr. Rahardi Ramelan

Relevant Experience

Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup. Hi is a Research Professor at the Agency for the

Assessment and Application of Technology. The honorary degree of Doctor Honoris Causa from Monash

University, Australia and Northeastern University Boston.

Minister of State for Research and Technology of the Republic of Indonesia and Chairman of the Agency for Assessment and Application of Technology (BPPT) in the Seventh Development Cabinet of the Republic of Indonesia.

Minister of Industry and Trade in the Development Reforms Cabinet of the Republic of Indonesia and Chairman of National Logistic Agency.

Deputy Chairman for Industrial Analysis and Vice Chairman of the National Development Planning Agency of the Republic of Indonesia

Several management positions and responsibilities related to Indonesian Aviation industry, the Weapon industry.

Prof. Dr. Rahardi Ramelan

Profile Overview

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Principal ConsultantMichal Wasserbauer

Michal is currently Principal Consultant at PT Cekindo Bisnis Grup. He has more than 5 year‘s experience in the

Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of

Business Feasibility Studies. He has worked for various industries, namely Grocery and Marchandise Retail,

Energy, Medical Device, Heavy and Automation Industries.

+6281282300584 | [email protected]

Michal Wasserbauer

Market opportunities valuation Investment analysis Performance management Feasibility studies

Strategy planning Stakeholder managementMarketing consultancy

Profile Overview

Relevant Experience

Relevant Skills

Multinational grocery and general merchandise retailer: Capital Investment Appraisals

World‘s largest student and recent graduates-run organisation: Financial Controller

International consultation company: Market Expansion Consultant

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Principal ConsultantNurmia Agustina

Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup. She has wide experience in the areas of Business

Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development &

Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change

Management. She has worked for various industries, namely Energy & Resources, Telecommunication, Retail,

Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.

+628119691987 | [email protected]

International Management company: Management & Legal

consultant

Chamber of Commercial: Head of Business Processing Section

Nurmia Dwi Agustina

Corporate lawOutsourcing processes Company formation Acquisitions Project Management Competitive Analysis

Business Planning Risk Management Talent Management Strategy Recruitment Visa & Work Permit Change Management

Relevant Experience

Relevant Skills

Profile Overview

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Selected Clients

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PT. Cekindo Bisnis Grup

Grand Slipi Tower 9th floorJl. Letjend. S. Parman Kav 22-24Jakarta - 11480Indonesia

[email protected] +6221 80660900