Business Etiquette

Business Etiquette When conducting business in Indonesia, one must observe and respect the cultural norms that dictate business etiquette, as it could be the defining factor between success and failure. Hierarchy is very important in Indonesian society and a great degree of emphasis is laid on respecting people’s status. This forms the overarching structure within… Continue reading Business Etiquette

Digital Economy

Digital Economy Indonesia’s relevance in the global economic landscape will be determined by its embrace of the future. In this age of digitization, the internet economy is of supreme importance as it may very well define the remainder of Indonesia’s growth story. On this front, Indonesia has made some sweeping advancements, metrics of which are… Continue reading Digital Economy

Foreign Direct Investment

Foreign Direct Investment FDI by sector – Foreign Direct Investment in Indonesia stood at US$ 31.1 billion for the year 2021 with the ‘Metal, Machinery and Electronic’ industry drawing the most attention from investors. Chart 1 lists the five main invested sectors of Indonesia in 2019 with their respective shares of FDI inflows while chart 2 lists the… Continue reading Foreign Direct Investment

Taxation Structure

Taxation Structure Corporate Income Tax– The Corporate Income Tax (CIT) rate in Indonesia was recently reduced to 22% for the years 2020 and 2021. This CIT rate will be further cut to 20% commencing 2022. The chart below provides a comparative view of the standard CIT Rates of 7 major ASEAN economies, and in doing… Continue reading Taxation Structure

Ease of Doing Business

Ease of Doing Business and Corruption Perceived Transparency Ranking – Indonesia has long been rated as one of Asia’s most corrupt countries. Since independence, Indonesia has been ruled by two dictators, Sukarno and Suharto, and a culture of cronyism and favor seeking was allowed to foster. In 1998, Indonesia became a democracy and people were allowed… Continue reading Ease of Doing Business

Government & Society

Government Structure Indonesia is a democratic country that applies a presidential system of government. As in other democracies, Indonesia follows the Trias Politica that recognizes the separation of the legislative, executive and judicial bodies. The executive institution is centralized under the president, vice president, and the cabinet of ministers. This cabinet is a presidential cabinet in… Continue reading Government & Society

Historical Background

Historical Background Indonesia is a country that has suffered through a prolonged history of subjugation. Over the centuries, power in the archipelago has switched hands between local kings, European colonists, and long-standing dictators, and it was only in 1998 that the country moved forth into life as a democracy. Having long been eyed by colonial… Continue reading Historical Background

Demographic Advantage

Demographic Advantage Population – Indonesia is the 4th most populous country in the world, having a current population of 276 million people. Even though population growth has slowed marginally in recent years, the growth rate stands at 1.1%, and this continued growth will push the population to 291.69 million people by the year 2035. The abundance of people lends several advantages to the rising… Continue reading Demographic Advantage

Country Highlights

KEY FACTS Indonesia > Key Facts KEY FACTS ABOUT INDONESIA    Map of Indonesia Geography The world’s largest island country consisting of >17,000 islands. Total Land Area1,900,000 sq km/735,000 sq mi Capital Jakarta Largest IslandsJava (home to >50% of the population), Sumatra, Borneo (shared with Brunei and Malaysia), Sulawesi, and New Guinea (shared with Papua… Continue reading Country Highlights