PUBLISHED ONJune 14, 2024 5:42 PM
The realization of foreign investment in Indonesia throughout 2023 broke the highest record of foreign investment (PMA) of around USD 50.27 billion, indicating that Indonesia is one of the favorite countries for global companies to invest.
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Indonesia is a promising market for the business development of multinational companies. This is evidenced by the value of the digital economy which has continued to increase over the past few years. In fact, currently, the value of Indonesia's digital economy is the highest in Southeast Asia, reaching USD 82 billion throughout 2023 based on e-Conomy SEA 2023 data, followed by Thailand at USD 36 billion and Vietnam at USD 30 billion.
Nadiem Makarim, Minister of Education, Culture, Research, and Technology of Indonesia, who was the keynote speaker at the opening session of WLG Summit 2024, emphasized that the quality of education in Indonesia will determine the pace of Indonesia's future economic growth. “The quality of human resources in Indonesia remains the main consideration of multinational companies in their decision to expand their business and enter the Indonesian market. The ability to accommodate multinational companies’ needs for highly skilled human resources would determine Indonesia’s advantage against other markets in Southeast Asia. Of course, this is only one consideration for foreign companies entering the Indonesian market. As for compliance with prevailing laws in Indonesia, counselors at law play an important role in ensuring a seamless process in investing in the Indonesian market,” said Nadiem.
Indonesia is one of the developing countries that attracts foreign investors with the value of foreign investment (FDI) reaching USD 50.27 billion in 2023. BKPM noted that the value of foreign investment is the highest in Indonesia's history. A number of foreign investments that flowed into Indonesia last year included foreign investment in the Basic Metal, Metal Goods, Non-Machinery, and Equipment Industry sectors. Singapore became the country with the largest investment in Indonesia with an investment value of USD 4.2 billion in the first quarter of 2024. Meanwhile, in second place is Hong Kong with an investment value of USD 1.89 billion followed by China in third place at USD 1.87 billion.
As one of the delegates at the summit, Andrew Ang, the Co-Head of Merger & Acquisition Practice, WongPartnership LLP, agreed that the tech sector in Indonesia is particularly promising. “Investors in Singapore come from local businesses, big and small, and also from multinational companies that have established their headquarters in Singapore. They consider Singapore a stable financial hub in Southeast Asia and thus, an attractive jurisdiction from which to enter into the Indonesian market. Aside from the growing tech sector and its abundance of entrepreneurial talent, investors also see a lot of potential in its natural resources. From an acquisition perspective, Indonesian companies have established frameworks, systems, and resources, making it easy for foreign investors to integrate,” explained Andrew Ang.
He further elaborated that experienced Singapore corporate lawyers are generally in a position to educate investors in Singapore about Indonesia's business environment due to their familiarity with Indonesian culture and regulations. They can provide an overview of various aspects that need to be considered when entering the Indonesian market, such as business cultures, employment regulations, and due diligence related to ESG.
Maria Elisa Verri, President of WLG, said law firm lawyers play an important role in ensuring that the foreign investment process can go well. “The delegates present here recognize that the need for global corporations to enter the Indonesian market continues to increase. They come from countries all over the world, including countries in the South American continent, such as Argentina, Brazil, and Chile, but also Baltic countries such as Latvia and Poland. Moreover, the summit was also an opportunity for delegates to share ideas and the latest developments related to corporate regulations in countries where members are residing,” said Maria Elisa.
“In 2024 we are very optimistic about Indonesia's commitment to sustainable development and economic diversification through the targeted construction of the New Capital Nusantara in East Kalimantan. Currently, the government is focusing on infrastructure development as well as attracting foreign investment, thus creating many opportunities especially for legal professionals to work on innovative projects. It is our honor to organize the WLG Summit 2024 and collaborate with law firms from around the world to facilitate international companies' seamless entry into the Indonesian market. We hope this event will contribute to increasing the value of foreign investment in Indonesia.” said Maria Sagrado, Managing Partner of Makarim & Taira S.
The WLG Summit 2024 was held at The Apurva Kempinski, Nusa Dua, Bali, with a diverse agenda of activities, including offsite activities such as tours to various locations in Bali and discussion sessions for 3 days. The organization of discussion sessions included sessions on the impact of ESG policies on the terms of agreement, valuation, and auditing as well as how to deal with the ongoing sustainable energy transition in Indonesia and collaboration between counselors at law to support foreign investment in Indonesia. In addition, participating delegates were also given the opportunity to network with other delegates from various countries.
About the company: Makarim & Taira S. has a reputation for delivering effective and high-quality solutions across a wide spectrum of legal services. The firm offers comprehensive services across various legal areas, including Banking & Finance, Capital Markets, Competition & Antitrust, Construction, Corporate & Commercial, Mergers & Acquisitions, Employment, Foreign Investment, Franchise & Licensing, Insolvency & Restructuring, Projects & Energy, Intellectual Property Rights, Real Estate, as well as Litigation, Arbitration & Dispute Resolution. For more than 40 years, Makarim & Taira S. has cultivated relationships with clients based on trust and loyalty inspired by the quality of services provided. The firm's international presence is bolstered by collaborations with major law firms across the globe, including law firms under the membership of the World Law Group (WLG). With various accolades and top ranks from leading global legal rankings, Makarim & Taira S. remains dedicated to delivering high-quality, value-driven services. With a focus on trust, and integrity, while expanding its global presence, the firm continues to be a top-tier legal partner in Indonesia, positioned to fulfill its vision and be a trusted choice for corporations worldwide.
Contact Info:
Name: Rina Mailia
Email: Send Email
Organization: Makarim & Taira S.
Website: https://makarim.com/
Release ID: 89132762
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