Benefits of Foreign Investment in Indonesia, Indonesia As a developing country, investment opportunities are quite large and profitable. Many important sectors in Indonesia are in need of fresh fund injection to develop such as property sector, transportation, and tourism which has been developing in recent years.
The number of sectors that require fund injection in Indonesia to make many investors willing to provide fresh funds. In fact, hundreds of investors from abroad want to disburse capital in Indonesia through cooperation with the central government, regional, or private parties.
The government opened the door of foreign investment in Indonesia. This is done by the government because foreign investment provides great benefits as presented below.
1. Opening Jobs
Foreign investment in Indonesia can open up many new jobs. With new capital, important sectors under construction will require many new workers. Residents around the project or community in the surrounding city will be absorbed to work here.
The number of jobs in Indonesia will reduce the unemployment rate. The population can get a good job and their economic level can increase slowly.
2. Increase State Income
Foreign investment coming into Indonesia must be in the form of foreign exchange. Incoming money will be automatically taxed which will increase the country’s foreign exchange. If foreign capital goes into this country continues to increase, the foreign exchange earned is also getting bigger.
3. Getting Lots of New Capital
Indonesia needs a lot of new funds to build some important sectors. However, not all funds can be provided by the existing investors in the country. The entry of foreign investors into Indonesia to make investments will make the funding needs immediately fulfilled and development can be carried out immediately.
During this time, foreign investment in Indonesia has always been hampered by complicated licensing problems. Finally, instead of wanting to invest here, investors prefer to enter other developing countries in Asia or Africa.
The difficulty of investment in Indonesia finally ended after the Indonesian government began to facilitate the entry of capital. In fact, the government invited the financiers to enter the country to find the sector to be funded.
4. Progress of Certain Fields
Investors who inject fresh funds into Indonesia also bring technology and knowledge from their countries. For example, drinking water treatment technology in a city or fast and data-saving cellular technology. Things like this are not necessarily owned by Indonesia so that to get it, foreign investors are needed.
What is owned by foreign investors will sooner or later also be developed and replicated in Indonesia. With new technology, important sectors in Indonesia can develop and eventually compete with other countries.
5. Regional Protection
Countries that become the center of investment will be protected by countries whose population invest. Take for example, when there are hundreds of Chinese investors investing in Indonesia, our country will get protection either political or other interests.
This can happen because the profit earned by the investors will contribute the profit also to the country of origin of the investors. If a country invested in capital is harassed or possibly hit by a regional conflict, investment opportunities will fall even further. As a result, the income earned will decrease and that is not good for the national economy.
Here are the five benefits of foreign investment in Indonesia. Fresh funds that enter the country will make the country’s economy increases and indirectly make people living in it more prosperous. Of course in investing you must have an understanding of investment law.