The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
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.
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).
One of the solid growing markets in Indonesia that remains untapped is the water purifier market. Although Indonesia holds six percent of the world’s fresh water resources, the quality of Indonesia’s public piped water is inadequate (contaminated with E. coli, fecal coliforms and other pathogens). Moreover, roughly 80 percent of the Indonesian population lacks access to piped water hence relying on river water for drinking, washing and bathing. However, the water of most Indonesian rivers do not meet drinking water requirements.
Starting from January 2017, 4G smartphone manufacturers in Indonesia will be required to use at least 30 percent of local content in domestically-sold smartphones and at least 40 percent for base transceiver stations (BTS). Earlier this year the Indonesian government had issued a draft regulation on this subject and last week it was signed by Indonesia’s Communications and Information Minister, the Trade Minister and the Industry Minister. What is the impact of this new rule on Indonesia’s smartphone industry?
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.
