Is It Safe To Invest In Indonesia After Covid?

We all know that the Covid-19 pandemic since 2020 has already done some serious numbers around the world. The question is, is it still safe to invest in Indonesia after Covid-19?

About Investing In Indonesia

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Sumber : Envato

There is a favourable environment in terms of investment that Indonesia offers. Some regions here offer business-friendly policies and investment incentives, especially for expatriates. The trick is to find the regions which has optimal conditions regarding a variety of industries, instead of just a few.

Indonesia has about 170,000 islands with a variety of qualities, different kinds of reliability, and their availability of logistics, infrastructure, and also utility services. Before you start investing anything in Indonesia, you must do your proper research first.

How To Invest In Indonesia

So, how to invest in Indonesia, especially as an expatriate business-person and after the Covid-19 pandemic?

Through Limited Liability Company, in this case Foreign Direct Ivestment or PT PMA (Penanaman Modal Asing).

In short, one can work as a foreign business investory. Of course, you have to make sure that the region you target is suitable for the kind of industry you work for. Plus, there is a local company that works together with you in the same business.

Through Representative Office.

For example: the company you work for back home has a representative office in Indonesia. You can start your business investment through here as well.

Of course, there is also another alternative when it comes to investing in Indonesia as an expatriate. You may want to consider investing in Indonesia Stock Market, especially in 2023.

How To Invest In Indonesia Stock Market

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Sumber : Envato

So, how does an expatriate business-person invest in Indonesia Stock Market? There are four (4) basic steps to start:

By submitting the copy of their passport.
By filling in the agreement form which is given or provided by the broker.
By paying a deposit. This is why your research is important, because the price may vary with different brokers.
By obtaining the approval of your account.

After that, then you can start investing in Indonesia Stock Market. The easiest approach is to invest in a broad market index. The cost is usually low, thanks to ETFs (exchange-traded funds). With Indonesian Stock Market, you will discover than 1 index gets trakced by ETFs.

There are plenty of ETFs in Indonesia, but which ones are the best? To compare them, there are three (3) factors to consider, which are:

Chart comparison: to compare ETFs in Indonesia in a line chart.
Return comparison: to compare ETFs in Indonesia in a bar chart.
Risk comparison: to compare ETFs in Indonesia in a bubble chart.

The best ETFs in Indonesia can be analyzed by a year of their return. However, if you are looking for the cheapest, check out their TER (total expense ratio).

Things To Consider Before Investing In Indonesia

So, what are the things to consider before investing in Indonesia, whether through stock market or else? Here are some steps to follow:

The High-Quality Talent’s Scarcity.

Is the number of high-quality talent enough or is it limited? Even so, investors must prepare for continuous training programs for employees, especially to upgrade their skills.

The Group of Multiple Audiences.

Indonesia consists of many cultures, tribes, ethnic groups, languages, and even religions. Religion plays a vital role in this society, so you may need to make some adjustments in some regions if your business does not coincide with it.

The Social Media Boom.

Since Indonesia is one of the countries with a huge number of avid social media users, make use of them as your marketing targets. If they like your posts, they shall help you to boost them automatically.

The Digital Ecosystem In Indonesia.

The digital ecosystem in Indonesia has been on the rise lately, so this is also good if your business is internet-based.

Some Political Issues In Indonesia.

This is the most critical point to watch out for. If Indonesia’s political situation gets unstable, you may have a hard time getting this country to sign your contract. This kind of situation also complicates investors if they ever need to file for bankruptcy.

Why Invest In Indonesia

Indonesia is full of abundant, natural resources, technically-trained, young workers, a large growing economy in domestic markets and other industries.