• Service: Tax
  • Type: Business and industry issue
  • Date: 12/31/2013

Investing in Indonesia 

This publication is intended as a general guide to investing and doing business in Indonesia primarily for new foreign investors looking to enter the Indonesian market, but also tries to capture practical insights and other intelligence or "lessons" from KPMG's experience at the transaction and M&A "coalface".
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Indonesia has historically been plagued and associated with weak institutions and a myriad of other problems, being one of the countries hardest hit by the 1997 Asian Economic crisis, which caused a major recession, widespread civil unrest, sectarian violence and resulting socio-economic fallout. At the height of the crisis, foreign investment virtually dried up, the IDR collapsed against the USD and other foreign currencies and interest rates and inflation reached unprecendented levels.

Today, Indonesia is a politically stable democracy, has enjoyed sustained periods of record economic growth and foreign investment, as well as now being the largest economy in South East Asia. However the country is still not without need for significant policy reforms and various challenges remain, with new ones emerging.