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Poilices
Policies on investment are based on the idea that investment should contribute to strengthening and deepening of the country's industrial structure. Therefore, the government gives priority to industries that produce capital goods, intermediate product and raw material needed to construct a strong foundation for the acceleration of industrial growth.
Priorities is accorded to investments based on natural gas as well as human resources, so that these industries will have strong roots and excel in competition because of their inherit comparative advantage. Export-oriented industries are also encouraged through the provision of facilities such as concessionary export credits, bounded areas and the development of the concept of export processing zones.
Opportunities
Following the recent deregulation announced on 23 May 1995, the Government of Indonesia has relaxed the regulation on the negative list of capital investment. The areas be classified into four main category : (i) wholly owned by foreign citizens and/or foreign statutory bodies; (ii) ownership of foreign citizens and/or foreign statutory bodies; (iii) only if certain conditions are fulfilled and, (iv) closed to any foreign participation.
In the first category, the following sectors are open to the 100% foreign ownership i.e. construction and operation of ports; production, transmission and distribution of electricity for public use; telecommunications; shipping; airline operation; construction and operation of water works; public railways and generation of atomic energy.
Statistics
The nominal GDP for the year 1994 was US$ 171.1 billion and its composition in term of percentage share based on current price was dominated by manufacturing industries (23.91%); agriculture, animal husbandry, forestry and fishery (17.44%); trades, hotels and restaurants (16.58%); services(9.29%); bank and financial instuition (8.89%); general mining (8.32%); construction (7.40%); transportation and communication (7.14%) and, electricity, gas and water (1.04%). The real GDP growth rate for 1994 was 7.34% while the inflation rate rise to 9.24%.
The total value of exports to both ASEAN and non-ASEAN member countries amount to US$ 40.05 billion for the year 1994 while the total import value amount to US$ 31.98 billion.As of March 1995, the total amount of foreign direct investment has reached US$ 105.8 billion not including investment in Oil and Gas Mining and, Banking and Financial Services. The top five leading foreign investing countries are Japan, Hong Kong, United Kingdom, United States and Taiwan.
Directories
PUSDATA, the Data Center and Information Service Agency under the Ministry of Industry is a one stop and non stop information service. PUSDATA has made available several on-line databases which covers trade statistics; agriculture production; forestry; minerals; macro economic indicators, directories of importers and exporters, industrial enterprises, investment; law and regulation and science and technology bibliography.
In addition, PUSDATA also provide gateway to several online services residing outside Indonesia which include ITC/GATT (GENEVA), Dialog Information Sevice (USA), Iquest-Compuserve (USA), Nikkei (JAPAN), Science and Technology Network (JAPAN), Datastar (SWITZERLAND), Industrial and Technology Information Bank (VIENNA), Scientific and Technical Information Research Institute (CHINA), SNS/TDB Globallink (SINGAPORE), World Trade Center(CANADA), ICPIC (USA) AND INTERNET.
For further information on any of the above topics, you may wish to go to Indonesia's Web Server