ASEAN KEY DESTINATIONS
Indonesia wants Brunei investors
BRUNEIANS were recently urged to invest in Indonesia as the largest economy in Southeast Asia seek to improve business links with Brunei.
Typically, Indonesia's largest investors come from Singapore, followed by South Korea, Japan and the Netherlands, said Syauki Amin, a representative from the Indonesian Chamber of Commerce and Industry (KADIN).
Given the geographical location of Brunei and Indonesia, Syauki said that they would like to see more investment coming in from Brunei.
Syauki is also the vice-chairman of the Singapore/Brunei committee for KADIN.
Syauki highlighted a number of reasons why Indonesia would make a good investment destination.
He said Indonesia has the fourth largest population in the world, thus having a large domestic market, with 53 per cent living in urban areas and adopting a modern lifestyle.
There is also a growing class of working youths, he explained, leading to a potential increase in consumption.
According to the Indonesia Investment Coordinating Board (BKPM), a centralised 'one-stop' agency for investments in Indonesia, about 70 per cent of the Indonesia is projected to be in the middle-income class by 2015.
With an abundance of natural resources, Indonesia is offering plenty of opportunities for investors, said Syauki
"There are five sectors with big potential – agriculture, infrastructure, tourism, industry and maritime,” he added.
Syauki explained that regardless of where they want to invest in, if an investor is prepared to put in 100 billion Rupiah ($10.2 million) and committed to employing about 1,000 Indonesian workers, then all legal and administrative requirements can be fast-tracked to about three hours through BKPM.
"This scheme is just opened in December, and already there are more than 40 companies registered with it.
“This includes the legal formalities to deal with land. Even if investments were made under that amount, the one-stop investment agency makes it easy to deal with government bureaucracy,” said Syauki, adding that it would take a few weeks to a months if not for the fast-track agreement.
Syauki also noted that the Indonesian government has a wide range of tax incentives.
“This includes manufacturing for re-export, where if you plan to export a finished product from Indonesia, they will waive taxes on raw materials and machinery,” he added.
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