In 2019 Indonesia recorded an economic growth rate of 5.3%. From an output perspective, the agriculture, forestry and fisheries sectors, as well as trading and construction, significantly contributed to the country’s GDP. In terms of tax intake, the government set a revenue target of Rp1786trn ($125.9bn) for the year and had successfully collected 86.5% of that figure by the end of December…
Indonesia’s ranking on the ease of doing business index in the World Bank’s “Doing Business 2020” report remained at 73rd of 190 countries, the same position as one year prior. The introduction of various regulations and policies that were designed to be friendly to investors apparently have not succeeded in boosting Indonesia’s ranking to 40th, which has been targeted by President…
Etiquette Indonesians are friendly, outgoing and peaceful. Indonesians’ approach to both life and business is one that is reserved and restrained in extreme emotions, while being playful and humorous. As a culture that values saving face, it is more efficient to deal with any problem with a smile and patience than by raising your voice and arguing. In a business setting, a handshake is typically…
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Interview:Chris Wren How would you describe the lifestyle in Indonesia for business travellers and expatriates? CHRIS WREN: Visiting and living in Indonesia are two very different things. The visitor’s experience is limited to journeys between the hotel and offices or factories. After-hours activities are usually carefully moderated by a host, client or prospective business partner, and are…
Interview:Luhut Pandjaitan How will the administration continue to encourage further investments in the digital economy? LUHUT PANDJAITAN: By creating an environment where our tech start-ups can perform well and quickly expand, we have already witnessed the tremendous growth of our digital economy. Alongside the five tech unicorns, we have many companies growing rapidly in sectors such as e-commerce…
Interview:Bahlil Lahadalia Which aims of the proposed Omnibus Law on Job Creation are most likely to benefit investors? BAHLIL LAHADALIA: The Omnibus Law aims to revise 79 laws that encompass a total of 1244 articles. The confusion caused by overlapping regulations today – in total, there are around 42,000 local and national regulations – is the greatest obstacle to the success of government…
Interview:Chan Chun Sing What can be done to foster greater intra-ASEAN trade and boost development? CHAN CHUN CHAN: South-east Asia holds tremendous business potential and opportunities. It remains one of the fastest-growing regions in the world, with economic growth continuing to average more than 5% annually. However, the region still has a way to go before truly becoming a single market…
Interview:Sri Mulyani Where have recent tax reforms improved the business and investment climate, and what further measures can increase the tax-to-GDP ratio? SRI MULYANI: We must consider both tax policy changes and tax administration reforms. On the policy side, tax incentives are given to businesses to support their expansion and encourage new investment, particularly in strategic sectors…
Interview:Perry Warjiyo Which measures had the greatest impact on the country’s economic trajectory over 2019? PERRY WARJIYO: Despite unfavourable global conditions in 2019, we managed to ensure stability through low inflation and stable exchange rates. This was done by lowering the policy rate, loosening liquidity and stabilising the rupiah. We also maintained a loose macroprudential policy…
