Before choosing a location in Indonesia you should:
- thoroughly research the options
- get advice from businesses already in Indonesia.
The Jakarta Special Capital Region Province (usually called DKI Jakarta) is a strategic area because it is the capital city and the centre of government administration and economic and finance activities.
The big contributors to Jakarta’s economy are finance, leasing and business services, trade, hotels and restaurants and manufacturing.
In 2008 the city had a population of 8.8 million. Other leading centres are:
- Bandung 2.6 million (2007)
- Surabaya 3 million (2005)
- Medan 2.1 million (2007).
Free trade zones
Free trade zones provide business incentives and advantages relating to trade barriers, tariffs, quotas and bureaucratic requirements that usually attract new business and foreign investment.
Indonesia has bonded zones and industrial estates. Goods may be imported into a bonded zone and then re-exported without payment of tariffs, unless the goods are sent into the regular customs territory of Indonesia.
The export-intended production entrepôts (EPTEs or stand-alone export processing units) may be inside or outside an industrial estate.
Goods may be imported into an EPTE and re-exported without paying tariffs, unless they are sent into Indonesia’s regular customs territory. Similar to bonded zones, EPTEs may divert up to 25 percent (by volume) of their products to Indonesian customs areas, where they are subject to normal procedures and customs duties.
(Additional sources – Deloitte Touche Tohmatsu, Regional Investment Development Directorate)
