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Dozens if not hundreds of trade fairs, expos and trade show events for all sectors of business take place in Indonesia throughout each year. There are the Indonesian Infrastructure week (IIW), ILDEX Foodtech expo, International furniture expo, Indonesia marine expo (IME), to name a few. Exploring market opportunities by participating in (international) trade fairs is a great starting point for many enterprises that are thinking of, or already anticipating of, doing business in Indonesia. Your fair presence can be part of a broader positioning strategy how to enter the Indonesian market, and target certain key government and corporate clients.
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Government-led infrastructure development is regarded by most analysts and policymakers as the key to overcome Indonesia’s slowing economic growth as infrastructure development will cause a multiplier effect in the economy (triggering growth in other industries such as cement and property while job availability grows accordingly). In the second quarter of 2015, Indonesia’s gross domestic product (GDP) growth slowed to 4.67 percent (y/y), a six-year low.
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The declining crude palm oil (CPO) price in the world market and the imposition of the USD $50 per ton export levy on CPO by the Indonesian government, effective from 16 July 2015, has severely affected Indonesian oil palm planters with the worst affected being the small holders and plasma farmers as they carry the highest production cost.
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Based on Indonesian Law 5 of 1960 on the Basic Provisions concerning the Fundamentals of Agrarian Affairs (Land Law), only Indonesian citizens are able to fully own Indonesian land. The rights of foreigners and foreign investment companies to own land are limited. In this column we will provide an overview of the types of land rights available to foreign investors in Indonesia: hak guna-usaha (the right to cultivate), hak guna-bangunan (the right to build), and hak pakai (the right to use).
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The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.