Indonesia’s Halal Law requires many consumer products and related services in the country to be Halal-certified from October 17, 2019. Businesses that need Halal certification must now go to the newly established Halal Products Certification Agency (BPJPH). While some aspects of the Halal Law are clear, many business leaders are awaiting the issuance of implementing regulations[…..]
Indonesia offers tax deductions of up to 200 percent for businesses that invest in human resources development activities. A mismatch between labor force skills and the needs of foreign investors is a primary reason why the country is failing attract manufacturers shifting their supply chains as a result of the US-China trade war. The government[…..]
On August 27, 2019, Indonesia’s Ministry of Labor issued Regulation No. 228 of 2019 (“Regulation 228, 2019”) to define the types of job positions foreign employees can hold in the country. The new regulation widens the number of positions open to expatriate workers, consolidates the list of positions into one, and simplifies the approval process[…..]
In late August 2019, the Indonesian government announced plans to move its current capital from Jakarta to the province of East Kalimantan on the island of Borneo.
On March 29, 2019, Indonesia’s Ministry of Finance (MOF) issued regulation PMK-32 that expands the list of export services eligible for zero-rated value-added tax (VAT). PMK-32, which amends the previous PMK-70, 2011, aims to encourage greater development of the country’s services sector and improve the competitiveness of domestic providers in the global market.
In June 2019, the Indonesian government issued GR 45/2019, which sets out a series of tax incentives for businesses that invest in labor intensive industries, training programs, as well as research and development (R&D).
Indonesia signed a Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) states on December 16, 2018. The EFTA comprises of some of the world’s wealthiest nations – Iceland, Liechtenstein, Norway, and Switzerland. Named the Indonesia-EFTA Comprehensive Economic Partnership Agreement (CEPA), the trade pact will come into force after it has been ratified[…..]
Indonesia and Australia have signed a comprehensive Free Trade Agreement (FTA) – the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) – to open up their economies to mutually beneficial growth. Both nations are expected to benefit greatly from the new arrangement. Australia is promised better access to a highly restricted and regulated import market mainly for[…..]
Indonesia’s e-commerce industry holds a lot of promise for foreign investors. The country has more than 130 million internet users and a burgeoning consumer market riding on the growing accessibility of mobile internet in the country. Known as Asia’s foremost mobile-first nation, Indonesia offers retailers a unique opportunity to dominate its online retail market. In[…..]
Indonesia in recent years has registered a steady growth at above 5 percent. Steady investment flows have also allowed Indonesia’s economy to expand at a rapid pace. Most notably, the Indonesian government has announced various policy changes, which are primarily aimed at providing new opportunities for foreign investors.