Call Us Now +62 21 390 8271
Call Us Now +62 21 390 8271
[News] 4 Difficulties In Investing In Indonesia
Posted at: 09 March 2018

As with many other countries, it is not always walk in the park to invest in Indonesia. There are major roadblocks:


1.Setting up 
One of the difficulties regularly cited by foreign companies in setting up operations is the length of time and the number of agencies that they have to deal with to obtain the necessary business permits/license. There are works done by the government to make it easy, but still, it can be a jungle.

2.Unclear and changing rule
Policies in Indonesia are often vague, and the details can take years to clarify and implement. It will be difficult to plan an investment. The Indonesian government often makes sudden changes to the rules, in ways that are difficult to predict. 

3.Labor regulations
According to Credit Suisse, Indonesia has some of Asia's most stringent labor regulations, ranking 110 out of 144 on labor-market efficiency in the WEF's 2014 Global Competitiveness report.

4.Education level
Hiring skilled workers is difficult. This is due less than 10 percent of Indonesians reaches tertiary level education.

However, Indonesia is still an attractive country to invest. Indonesia is the fourth most populated country in the world and the largest economy in Southeast Asia.  Indonesia has been one of the best performing investments throughout the world economic crisis that began in 2008. In fact, it was the only economy posting any real economic growth in 2011 and continues to grow in the years since. So what is the solution if a foreign company still interested in investing in Indonesia?

By using the service by JAC Business Center, investing in Indonesia can be easy done. Several of the services are; Business Process Outsourcing (BPO) to get talents without headcount and Employer Without Establishment (EWE) Service to help new investor in doing business in Indonesia. EWE helps Employer without legal entities in Indonesia to invest here.

JAC Business Center is a part of JAC Recruitment, an international recruitment consultancy, headquartered in UK. Currently JAC Recruitment operates in 11 countries with 23 offices in the UK, Singapore, Japan, Malaysia, Indonesia, Thailand, China, Korea, Vietnam, Hong Kong, and India.

(Source: Wall Street Journal, Huffington Post, The Jakarta Post)