Economy & Trade

Latest News

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  October 25, 2019 by Indonesia Briefing
  

  Indonesia’s Halal Law Takes Effect, Impacting Products and Services

  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[…..]
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  October 10, 2019 by Indonesia Briefing
  

  Tax Incentives for Developing Talent in Indonesia

  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[…..]
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  September 13, 2019 by Indonesia Briefing
  

  Expatriate Workers in Indonesia: New Regulation on Positions Open for Employment

  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[…..]
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  September 11, 2019 by Indonesia Briefing
  

  Indonesia is Moving its Capital – What Does it Mean for Businesses?

  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.
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  September 4, 2019 by Indonesia Briefing
  

  Export Services in Indonesia: Eligible for Zero-Rated VAT

  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.
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  August 26, 2019 by Indonesia Briefing
  

  Indonesia’s New Tax Incentives: What it Means for Investors

  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).
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  May 10, 2019 by Indonesia Briefing
  

  Indonesia’s FTA with the European Free Trade Association: Salient Features

  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[…..]
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  March 29, 2019 by Indonesia Briefing
  

  Indonesia Signs Comprehensive Free Trade Agreement with Australia

  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[…..]
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  March 14, 2019 by Indonesia Briefing
  

  Indonesia’s E-Commerce Sector – Market Potential and Challenges

  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[…..]
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  January 18, 2019 by Indonesia Briefing
  

  Indonesia’s Investment Outlook for 2019

  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.