According to the UNCTAD 2014 World Investment Report, Indonesia is one of the three most attractive destination for multinational companies for 2014-2016, ahead of India and Brazil. The Indonesian government encourages foreign direct investment in most sectors of the Indonesian economy. Many international giants, such as Apple Inc., Michelin, Baidu, and Foxconn, are planning to increase direct investment in Indonesia.In 2015, the government of Indonesia unveiled its eight economic stimulus package to boost economic growth, investment and trade. The latest edition of the series of packages, announced by Economic Chief Minister Darmin Nasution at the end of 2015, involves fiscal and non-fiscal incentives to open up its oil refinery development across Indonesia to private investors’ participation.
In November 2015, global credit rating agency Fitch Ratings affirmed Indonesia’s sovereign credit rating at BBB- Investment Grade with a stable outlook, acknowledging its ongoing commitment to structural reforms amid recent economic woes.
However, as Indonesia is under a time when the economy is growing at its slowest pace in 5 years, Steven Tabor, country director at the Asian Development Bank in Jakarta, comments that change is happening but investors must be patient.
Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of experience in Indonesia, said, “I believe that Indonesia will remain the most attractive country in Southeast Asia for international investors, given its enormous market capacity, abundant natural resources and growing internal demand.”