Invest Islands https://invest-islands.com property investment service Wed, 23 Oct 2019 05:05:13 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.12 https://invest-islands.com/wp-content/uploads/2018/11/cropped-globe-invest-new-gold-32x32.png Invest Islands https://invest-islands.com 32 32 Jokowi 2.0 – Stronger, hopefully faster and more effective https://invest-islands.com/jokowi-2-0-stronger-faster-effective/ https://invest-islands.com/jokowi-2-0-stronger-faster-effective/#respond Wed, 23 Oct 2019 05:05:13 +0000 https://invest-islands.com/?p=12123 President Joko “Jokowi” Widodo has a dream start to his second term in office. With a bigger mandate, politically he is at his most powerful, having taken the oath of office as president for 2019-2024 on Sunday.     But the challenges facing him are more complex now, raising questions over whether he can move […]

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President Joko “Jokowi” Widodo has a dream start to his second term in office. With a bigger mandate, politically he is at his most powerful, having taken the oath of office as president for 2019-2024 on Sunday.

 

jokowi 2.0
Political timeline in Indonesia | © Invest Islands jokowi 2.0

 

But the challenges facing him are more complex now, raising questions over whether he can move faster or lead as effectively as he has these past five years.

Besides winning the April presidential race with a 10-percent margin as opposed to 5 percent, five political parties endorsed his reelection, compared to only four parties five years ago.

Together, the five parties already control 60 percent of the 575-seat House of Representatives. The coalition government is bolstered by two or even possibly three opposition parties who crossed the aisle, or would do so, before or after Sunday’s inauguration. His coalition controls the House’s legislative agenda from the word go.

 

Read more on the Indonesian Political landscape

 

In 2014, he started as a novice in national politics with seven years of experience as mayor of Surakarta in Central Java and governor of Jakarta. He now has clocked five years of managing the political complexities of governing a country of over 270 million people.

With no reelection worries, the populist President can afford to do what needs to be done, without worrying too much about losing his popularity.

Indonesia is never short of challenges — the solutions of which require sacrifices or could upset the powerful elites — that only a strong president could push. These include addressing long-standing human rights problems, ending the persecution of minority groups and phasing out wasteful fuel subsidies.

 

Jokowi 2.0
Jokowi’s Reforms | © Invest Islands jokowi 2.0

 

Recent events, however, particularly the battle with the House over the future of the Corruption Eradication Commission (KPK) and the plan for the new Criminal Code (KUHP), have put a reality check on Jokowi’s powers.

Indonesia’s multiparty electoral system requires the president, who is elected separately, to work with the House. Since Jokowi does not chair or control any political party, he relies on the coalition of political parties to help pass the laws he needs.

From 2014 to 2019, he governed effectively by parceling out Cabinet seats to parties. He often set one party against another and reshuffled the Cabinet twice to ensure no one party held sway over him. Resistance to his policies often came from his own Indonesian Democratic Party of Struggle (PDI-P), the largest in his coalition, rather than from opposition parties.

Now, both Jokowi and the political parties in his coalition have 2024 in mind for different reasons: he for his legacy and they for the next elections.

These two different objectives are not always in conflict.

When Jokowi asked for their support to move the national capital out of Jakarta, he did not find much resistance. Just a lot of skepticism.

Now with the parties pushing for amending the Constitution to change the rules of the political game, he is not stopping them. He has neither the clout nor any direct personal interest in doing so. His presidency is good until 2024.

But there will be times when their interests clash, as they did last month.

Jokowi seems to be losing the battle over the new KPK Law, which weakens the antigraft agency, making it almost ineffective. With all parties in the House having pushed for the new KPK Law, he had little chance of stopping it. The most he could do was refuse to sign the bill, which he did. But the bill automatically became law on Thursday, one month after the House’s endorsement.

The passing of the new KPK Law by the House last month sparked massive and unfortunately fatal protests nationwide led by students. Police tried to suppress them even as Jokowi openly appealed to let them exercise free speech.

He invited over 40 activists selected from the progressive camp, led by senior journalist Goenawan Mohamad, to the Presidential Palace, where he promised to consider issuing an executive order, a regulation in lieu of law, to rescind the new KPK Law.

 

Jokowi 2.0
Indonesia political stability Index | © Invest Islands jokowi 2.0

 

The President can still issue the order in the coming days if he wants to, renewing the battle with the House.

If Jokowi seems to be losing the fight over the KPK, he won a big battle against the House over the new KUHP. The House and Law and Human Rights Minister Yasonna Laoly were on the verge of passing the draft code when he called for its halt in the eleventh hour. He killed the bill in response to the protests.

When the going got rough, he knew he could rely on public support. This could become a pattern if he continuously fights with the House.

These two battles took place last month as the House was ending its five-year sitting. There was no sense for Jokowi to waste his political capital fighting House members with nothing-to-lose attitudes. Better reserve your energy for the big battles still to come.

With the new batch of House members in place, and with Jokowi starting his second term with a new Cabinet, the power relations between the executive and legislative branches will change.

Jokowi is more powerful than in 2014, but the House seems bolder in opposing or defying him. But never underestimate the former furniture salesman. Not only did he survive the last five years, he also got himself reelected. That should tell you something.

 

jokowi 2.0


Article source: https://www.thejakartapost.com/academia/2019/10/21/jokowi-2-0-stronger-hopefully-faster-and-more-effective.html?utm_campaign=newsletter&utm_source=mailchimp&utm_medium=mailchimp-oct&utm_term=jokowi-commentary

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Indonesia: best country in the world to visit 2019 in the Condé Nast Traveler Readers’ Choice Awards https://invest-islands.com/indonesia-best-country-in-the-world-to-visit-2019/ https://invest-islands.com/indonesia-best-country-in-the-world-to-visit-2019/#respond Mon, 21 Oct 2019 05:53:08 +0000 https://invest-islands.com/?p=12115 Indonesia takes #1 spot for the Best country in the world to visit in the latest Condé Nast Traveler Readers’ Choice Awards for 2019. Condé Nast is headquartered in New York and London and they are arguably one of the most influential media companies for the tourism industry on the planet. Operating in 31-markets around […]

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Indonesia takes #1 spot for the Best country in the world to visit in the latest Condé Nast Traveler Readers’ Choice Awards for 2019.

Condé Nast is headquartered in New York and London and they are arguably one of the most influential media companies for the tourism industry on the planet. Operating in 31-markets around the world, they produce Condé Nast Traveler, Vogue, GQ, The New Yorker, Vanity Fair, Wired and Architectural Digest among others.
To say they have their finger on the pulse of the travel industry might be somewhat of an understatement.

 

 

Konda Maloba, Sumba Island | © Invest Islands

 

According to their website, Condé Nast produce monthly video content that generates more than 1-billion views; they reach 84-million consumers in print, 366-million in digital and 384-million across social platforms. Some serious numbers indeed.
More than half a million people surveyed
And one reason their Readers’ Choice Awards are taken so seriously by the travel industry is because of these numbers and the number of people taking part in the survey.
This year, Condé Nast Traveler claim some 600,000 registered voters took part in the survey via desktop, laptop, smartphone and tablet. And because so many people engage, results are often seen to forecast travel trends.

 

Indonesia is also home to some of the Best resorts in the world

 

How does it work?
The types of questions asked in the survey are divided into different categories, but regardless of the grouping, a ‘candidate’ (a hotel, resort, restaurant, city, spa, island, train, airline, airport, and cruise line in the world) must receive a required minimum number of responses and a minimum overall rating to be eligible for a Readers’ Choice Award.
They claim candidates are judged on a set of criteria relevant to their category, based on a standard five-point scale converted to a percentage: excellent, very good, good, fair, and poor.

The average of these ratings determines the final score based on four decimal points, with two decimal points being published. For example, the sore of 98.50 for Halekulani, Honolulu, No. 1 hotel in Hawaii, represents the average of ratings the hotel received from respondents for all relevant criteria: rooms, service, food, design, location, activities/facilities, and value.
Whether you’re a fan of awards or not the Condé Nast Traveler Readers’ Choice Awards are widely recognized as being the tourism industry’s benchmark.

And this year Indonesia takes #1 as the top country to visit for 2019.

 

2019 Readers’ Choice Awards – Results
These are Condé Nast Traveler Readers’ Choice Awards Top 20 Countries for 20198 with their respective scores based on survey results from 600,000 registered voters.

Indonesia 92.78 (last year #15)
Thailand 92.37 (last year #3)
Portugal 91.94 (last year #18)
Sri Lanka 91.79 (last year #19)
South Africa 91.59 (last year #5)
Peru 91.28
Greece 91.18 (last year #2)
Philippines 90.63
Italy 90.62 (last year #1)
Vietnam 90.46 (last year #13)
Turkey 90.15
Japan 89.74 (last year #12)
Mexico 89.7 (last year #16)
Tanzania 89.62
Israel 89.54
Colombia 89.41
New Zealand 89.11 (last year #10)
Ireland 89.08 (last year #17)
Cambodia 89.03
Croatia 88.83

Peru, The Philippines, Turkey, Tanzania, Israel, Colombia, Cambodia and Croatia all made an appearance in the Top 20 from relative obscurity last year. Interestingly, Australia (last year #4), France (last year #6), USA (last year #7), Spain (last year #8) and India (last year #9) all failed to make it into this year’s Top 20.

You can find the complete list of Condé Nast Traveler Readers’ Choice Awards for 2019 here.

Sources: Condé Nast Traveler, Hotel Online, PRNewsWire, Kompas

 

Article source: https://sevenstonesindonesia.com/indonesia-awarded-best-country-in-the-world-to-visit/?fbclid=IwAR2fVyR4WZfmK86_yVTKUcI23bYmyyWOa9wc9lYfubMNLvhPdGV6PbGNsLs

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20,000 pre-sales tickets MotoGP Lombok 2021 available from November https://invest-islands.com/20000-sale-tickets-motogp-lombok-2021-available-november/ https://invest-islands.com/20000-sale-tickets-motogp-lombok-2021-available-november/#respond Thu, 17 Oct 2019 10:01:38 +0000 https://invest-islands.com/?p=12097 The construction of the Mandalika street circuit on Lombok, West Nusa Tenggara, designed to host events for the world’s premier motorcycle racing class MotoGP, is proceeding to plan with officials expressing optimism the track will be ready by 2021.   “As of today, 30 percent of the ground preparations have been completed, while construction of […]

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The construction of the Mandalika street circuit on Lombok, West Nusa Tenggara, designed to host events for the world’s premier motorcycle racing class MotoGP, is proceeding to plan with officials expressing optimism the track will be ready by 2021.

Tickets motoGP Lombok 2021
Lombok Motogp 2021 Map | Invest Islands tickets MotoGP Lombok

 

“As of today, 30 percent of the ground preparations have been completed, while construction of the full circuit complex is 10 percent complete. This complex is set to be completed in 2021 and will host a MotoGP event in Indonesia for the first time,” Tourism Minister Arief Yahya said during his working visit to Mandalika on Thursday.

 

Read the full story about the MotoGP Lombok 2021

 

Indonesia will host a prestigious MotoGP event after securing a deal with Dorna Sports, the MotoGP rights holder, for a race slot in the 2021 season. The deal was sealed in January 2019 by the Indonesia Tourism Development Corporation (ITDC), the state-owned company responsible for developing the Mandalika Special Economic Zone (SEZ) in which the circuit is located. The 1,175-hectare Mandalika SEZ is earmarked to be an entertainment and sports event district.

 

Tickets motoGP lombok 2021
Watch the full MotoGP Lombok video here | Invest Islands  tickets MotoGP Lombok

 

The circuit operator plans to offer 20,000 pre-sale tickets online in November to gauge the public’s enthusiasm.

The 4.32-kilometer racetrack will have 19 bends, with images of the circuit’s beautiful backdrop of mountains and pristine beaches to be beamed around the world, promoting Mandalika as a world-class tourist destination.

Abdulbar M. Mansoer, the president director of the ITDC, said the circuit would be built as a street circuit that could function as a normal road when not being used for racing events.

“As part of the integrated entertainment and sports district, the area in the middle of the Mandalika circuit will be used as a tourist destination. There will be glamping, commercial areas and condotels built in the area. As was stated, construction is 10 percent complete,” said Abdulbar.

The circuit complex will feature a 50,000 seat grandstand as well as a standing area with a capacity of 138,000. It will also host hospitality suites with a capacity for 7,700 visitors and a paddock area that can fit 40 garages.

 

Ticket MotoGP Lombok 2021
MotoGP Lombok 2021 – Mandalika Circuit | Invest Islands tickets MotoGP Lombok

 

Arief Yahya said the 2021 MotoGP would benefit Indonesian tourism, with the event projected to attract 100,000 tourists to Mandalika.

“Hopefully, MotoGP can become Mandalika’s main attraction,” he said.

Mandalika is one of five super-priority tourist destinations the government has earmarked for development as it seeks to achieve its target of 20 million foreign tourists and 375 million domestic tourists next year. The four other super-priority destinations, dubbed the New Balis, are Lake Toba in North Sumatra, Borobudur temple in Central Java, Likupang in North Sulawesi and Labuan Bajo in East Nusa Tenggara.

 

What is the Mandalika Project and why it matters ? 

 

tickets MotoGP Lombok


Article source: https://www.thejakartapost.com/news/2019/10/14/mandalika-motogp-circuit-10-percent-complete-on-track-to-host-race-in-2021.html

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Indonesia’s digital economy in 2020 set to boom thanks to technology https://invest-islands.com/indonesias-digital-economy-2020-technology/ https://invest-islands.com/indonesias-digital-economy-2020-technology/#respond Mon, 14 Oct 2019 04:50:29 +0000 https://invest-islands.com/?p=12026 DIGITAL transformation has helped businesses in Southeast Asia realize the importance of redefining and revolutionizing their operations with technology. As we inch closer to 2020, the region is gearing up to innovation faster and more effectively. In this economic climate, Indonesia, one of the emerging markets in Southeast Asia, is making headlines. A recent report […]

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DIGITAL transformation has helped businesses in Southeast Asia realize the importance of redefining and revolutionizing their operations with technology.

As we inch closer to 2020, the region is gearing up to innovation faster and more effectively.

In this economic climate, Indonesia, one of the emerging markets in Southeast Asia, is making headlines. A recent report said that the country’s internet economy is growing incredibly quickly, compared to neighbors such as Malaysia and the Philippines.

The report valued the country’s internet economy at US$4o billion this year and forecasted that value to more than triple in the coming months.

The significant growth of Indonesia’s digital economy seems to also be changing business relationships across the region by bridging trade barriers. Their e-retailer, e-hailing, e-commerce, and digital learning services, for example, are drawing in a lot of users by engaging with them more proactively.

Pair that with the investment deals showering in, and suddenly, 2020 looks bright for the country’s digital economy.

Nurturing business relationships through technology solutions

The country has spearheaded efforts in establishing itself as a digital hub by endorsing the use of public cloud services for better data management and flexible computing power.

In fact, the country’s tech experts have pointed out that now, with improved infrastructure, it is better prepared to host data centers and help local businesses migrate to the cloud.

 

Read more on how the Indonesian government is pushing for the emergence of new unicorns

 

Indonesia is already expecting a number of prominent global cloud service providers to build data centers in the country next year, fueling partnerships and collaborations.

More importantly, the cloud market is set to be valued at US$1.2 billion next year, signifying the growing demand for the technology in domestic markets at home.

Further, the country is also joining forces with Germany in producing electric vehicles, a viable solution to limit environmental pollutions.

Efforts begin next year when Indonesia participates in Germany’s biggest industrial technology exhibition as a partner. German will also be a major investor in the Indonesia 4.0 program.

 

Facilitating efforts from the government

Although increased digital engagements and activities have steadily driven the economy forward, the government’s involvement is particularly vital to not only boost growth but also ensure sustainability and security.

According to the Communications and Information Minister Rudiantara, “The government’s role will shift from being a regulator to a facilitator to accelerate the digital economy.”

As a matter of fact, new regulations on e-commerce and its tax regulation, as well as personal data protection, will be reviewed by the government to redefine the digital market scene. Taxes also are being regulated and new ones are being leveraged as more international digital trades take place.

Further, an official from the Office of the Coordinating Economic Minister Rudy Salahuddin recently revealed that expanding the utilization of digital infrastructures requires strategic planning to ensure a smooth development process.

Government bodies clearly recognize their role as a catalyst in helping the country achieve digital maturity, and being a key player is essential to drive the economy.

Producing the right talent for the market

An expert attributed the country’s active youth involvement to have particularly boosted the value of the country’s digital economy.

Despite their lack of skills, Indonesia’s youth are also vital to meet the talent demands in the digital sector.

As more developers and technology solution providers plan to expand their business in Indonesia, the government is urging local universities to produce the right talent. As a result, more focus will be given to grooming them with the right digital skill.

Moreover, private companies are also chipping in by collaborating with government bodies to set up tech entrepreneurs training institutes in the country. Warung Pintar, for example, has been endorsing employment of the right tech talents that fully understand how to leverage technology solutions as they believe it would sustain their operations.

Despite the progressive feat the country has achieved, it must continue to work towards establishing effective tax regulations, protecting its intellectual property, and leveraging its strengths in bridging trade barriers in the region if it wants to deliver on the promise of a bright and successful future in 2020.

 

 


Article source: https://techwireasia.com/2019/10/how-technology-will-drive-indonesias-digital-economy-to-new-highs-in-2020/

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Jokowi reforms for the Indonesian economy promise to bring more FDI https://invest-islands.com/jokowi-reforms-indonesian-economy-fdi/ https://invest-islands.com/jokowi-reforms-indonesian-economy-fdi/#respond Wed, 09 Oct 2019 09:33:29 +0000 https://invest-islands.com/?p=11953 Indonesian President Joko Widodo said he’ll introduce sweeping changes to labor rules by the end of the year and open up more sectors of the economy to foreign investment, delivering on some of the major reforms investors have been demanding. Jokowi, as the president is known, said planned changes to the labor law will now […]

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Indonesian President Joko Widodo said he’ll introduce sweeping changes to labor rules by the end of the year and open up more sectors of the economy to foreign investment, delivering on some of the major reforms investors have been demanding.

jokowi reforms

Jokowi, as the president is known, said planned changes to the labor law will now only apply to new employees, proposals he’ll discuss with labor unions before taking them to parliament. By restricting the rules to new jobs only, Jokowi can attract businesses wanting to set up shop in Indonesia or looking to expand, while defusing opposition from labor groups.

jokowi reforms

 

Speaking from his home town of Solo in Central Java, Jokowi told Bloomberg’s Editor-in-Chief John Micklethwait that it’s his “first priority” to reform the labor rules. Businesses have long complained that generous severance packages, a complex minimum wage system and restrictions on hiring and firing workers make it difficult for them to expand operations.

“Every year there are 3 million new workers in the job market,” Jokowi said. “They must be given room to enter the job market. Second, we want to address investors’ complaints. We have to revise the law and we hope that more investment will create competition among companies to get better workers.”​

 

Indonesia is trying to make up lost ground against regional peers vying for a slice of the business that’s relocating out of China amid that nation’s escalating trade war with the U.S. So far, smaller rivals like Vietnam are outperforming Indonesia, spurring Jokowi to enact economic reforms that investors have long been pushing authorities to make.

While touring a PT Pan Brothers’s garment factory earlier on Wednesday, the president said he’ll seek to make changes to the law “by the end of this year” at the latest. Job conditions and workers’ rights for those in existing jobs would be protected, he said.

Jokowi will need to win over labor unions first. Tens of thousands of people protested Wednesday in 10 cities, including Jakarta, against planned changes to the labor rules. On top of that, widespread student riots have broken out across the country in recent weeks against controversial changes to a crime bill.

The protests aren’t derailing Jokowi’s reform plans as he prepares to officially begin his second five-year term later in October. He’s demanding ministers work harder and faster to remove the “handcuffs” restricting growth. And in addition to planned tax cuts and changes to labor laws, he wants foreign investment rules to be overhauled.

What Bloomberg’s Economists Say

“President Joko Widodo’s continuation of reforms during his second term — depending on implementation — could increase potential growth by 1-2 percentage points over the next decade. That’s significant for an economy that expanded 5.2% in 2018.”

Tamara Mast Henderson, Asean economist

Indonesia restricts foreign investment in a number of industries from banking to brewing. A plan announced back in November to revise the limits and open up some sectors to as much as 100% foreign ownership was delayed following a backlash from local businesses.

The president said Wednesday he’ll allow 100% foreign ownership in sectors such as health and education in special economic zones. He’ll also create an “apparel zone” in Central Java to build on the key export industry that already exists in the province, and allow 100% foreign investment in the sector.

 

Read more on Jokowi’s plan to attract more foreign investments in Indonesia

 

Relative to the size of its economy and population, Indonesia attracts little foreign direct investment. In a recent World Bank document presented to Jokowi, none of the 33 Chinese companies that announced plans to set up or expand production abroad between June and August chose Indonesia. They preferred locations such as Vietnam and Cambodia.

“We compete against other countries in attracting investment, to create jobs,” Jokowi said. The two main complaints he hears from investors are regarding employment in labor-intensive industries and licensing rules, he said. “We will work on these two as soon as possible.”

Ben Bland, director of the Southeast Asia project at the Lowy Institute, a policy thinktank in Sydney, said it remains to be seen whether Jokowi has the political capital to push ahead with the reforms outlined, particularly around changes to the labor market, or if he backs down in the face of resistance from trade unions and others. “When confronted with opposition, Jokowi is a guy who normally likes to go for consensus, not confrontation,” Bland said in an interview with Bloomberg Television.

The president said he’ll retain Sri Mulyani Indrawati, currently finance minister, in his cabinet, though he declined to say what role she’ll take. A former World Bank managing director, Indrawati has been spearheading efforts to boost tax revenue and keep the budget deficit under control.

Jokowi is keen to shore up the economy as global risks rise and the trade war wreaks havoc in the region. Growth has been stuck around 5% for most of his first term. The government has twice already revised its growth projections for this year lower, seeing expansion of 5.08% now, compared with an initial 5.3%. The economy is projected to grow 5.3% next year.

jokowi reforms

Exports have been sliding, contracting for a 10th month in a row in August, and the current account deficit, at 3% of gross domestic product, remains a key vulnerability for the economy.

Other economic variables are doing better. Inflation remains well within the central bank’s target range of 2.5%-4.5%, while the jobless rate is at a more than two-decade low. The currency has gained 1.4% against the dollar this year, one of the stronger performers in Asia in 2019.

jokowi reforms

Jokowi said the government would like to see lower interest rates in the economy, though emphasizing that the central bank conducts monetary policy independently. Bank Indonesia has cut rates three times this year by a total of 75 basis points, rolling back some of last year’s policy tightening.

“Government will not intervene, but I think if rates could fall, it would be good for the real sector,” he said. “They know when to raise or to cut rate.”

 


Article source: https://www.bloomberg.com/news/articles/2019-10-02/jokowi-promises-to-make-new-labor-investment-rules-a-reality

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Indonesian Investment Ecosystem Set for Accelerated Improvement https://invest-islands.com/indonesian-investment-ecosystem-improvement-acceleration/ https://invest-islands.com/indonesian-investment-ecosystem-improvement-acceleration/#respond Mon, 07 Oct 2019 03:45:29 +0000 https://invest-islands.com/?p=11947 Despite improvement in Indonesia’s ranking in Ease of Doing Business (EODB), investment competitiveness, and the success in integrating permits through Online Single Submission (OSS), the Government still needs to make some improvements, according to President Joko “Jokowi” Widodo. “It’s not enough and that is the fact. I think we also must accelerate the process since […]

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Despite improvement in Indonesia’s ranking in Ease of Doing Business (EODB), investment competitiveness, and the success in integrating permits through Online Single Submission (OSS), the Government still needs to make some improvements, according to President Joko “Jokowi” Widodo. “It’s not enough and that is the fact. I think we also must accelerate the process since other competitors also compete in providing the best investment attraction,” President Jokowi said in his introductory remarks during a Limited Meeting on the Improvement of Investment Ecosystem, at the Presidential Office, Jakarta, Wednesday (11/9).

President Jokowi stated that 33 Chinese manufacturers have relocated from China, but no manufactures are relocated to Indonesia. He added that the Government must pay attention to this condition. In addition, the President admitted that he often received complaints from investors who had hard times due to complicated regulations, permits, and laws.

“The regulations also changed a lot from time to time and cannot be predicted because ministries exercise their discretions,” he said adding that the condition contributes negatively to the image of Indonesia since other countries offer faster permitting process and more incentives than our country.

Indonesian investment ecosystem
Luxury Glamping projects in Indonesia | © Invest Islands

 

Find out how the Omnibus Law will impact Building permits in Indonesia

 

The President went on to say that the Government is resolving the issue at central government level, and it will be carried on to provinces, regencies, and cities levels as well.   Therefore, he called for comprehensive improvements for the investment ecosystem, ranging from regulations, permits, tax incentives, land issues, to employment and security.

Also on that occasion, the Head of State reminded all people attending the limited meeting that reforms are the key to face global economy slowdown. He also affirmed that Indonesia can address economic recession which is predicted to occur in the future as long as the Government can resolve that aforementioned issues.

In the other parts of his remarks, President Jokowi said that the Government will hold a limited meeting regularly every other day to discuss the Improvement of Investment Ecosystem until it produces concrete decisions to improve the ecosystem.

In a limited meeting last week, the President asserted that he has ordered all ministries, particularly that overseeing economic matters to list regulations considered hampering investment in general and Foreign Direct Investment (FDI) in particular. Moreover, the President also called on ministries overseeing investment matters to list foreign companies that have affirmed their commitments to invest in Indonesia but are still facing several problems in the implementation on the ground.“I want the problems to be identified. Then, we can conduct debottlenecking process to uproot the problems,” the President concluded.

 


Article source: https://sawitindonesia.com/president-jokowi-calls-for-improvement-acceleration-in-investment-ecosystem/

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Building permits in Indonesia to be revamped under Omnibus Law https://invest-islands.com/building-permits-in-indonesia-omnibus-law/ https://invest-islands.com/building-permits-in-indonesia-omnibus-law/#respond Mon, 30 Sep 2019 03:14:41 +0000 https://invest-islands.com/?p=11919 In continued efforts to stimulate investment and economic growth, Indonesia’s government has announced it will change rules and regulations around building permits. paradigm shift in Indonesia’s construction and real estate industries is taking place. According to local newswires the requirement for new buildings to have a build permit (locally called an IMB – Izin Mendirikan […]

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In continued efforts to stimulate investment and economic growth, Indonesia’s government has announced it will change rules and regulations around building permits.

paradigm shift in Indonesia’s construction and real estate industries is taking place. According to local newswires the requirement for new buildings to have a build permit (locally called an IMB – Izin Mendirikan Bangunan) is about to be revamped and updated with what is being described as “standards compliance.”

 

building permits in Indonesia
Awang Luxury residences | Invest Islands

 

How can foreigners buy land in Indonesia?

 

Omnibus Law

The initiative is part of a larger strategy under the Omnibus Law, which aims to overhaul 72-existing regulations in an effort to “reduce the number of overlapping investment licensing rules at central and regional levels. And … through this revision, the government wants to improve investment licensing to attract more foreign investors,” claim CNN Indonesia.

Luhut Panjaitan, Coordinating Minister for Maritime Affairs, told local newswires President Jokowi has given him just one month to complete the revision of the 72-existing regulations, as Indonesia is currently one of the most complicated country’s in ASEAN for investment because of outdated and overly-complex licensing regulations.

Current system open to abuse

During a recent Indonesia Chamber of Commerce and Industry (KADIN) meeting on the property sector held in Jakarta, Sofyan Djalil, Agrarian and Spatial Planning Minister and Head of the National Land Agency, said the current IMB system was open to abuse and will be revamped.

According to Detik Finance Djalil went on to suggest licenses are not effective because violations still occur frequently. For example, ” building permits in Indonesia can be issued for a 400-square metre building, then the developer builds an 800-square metre building, but does anyone care?”

The clear implication behind his rhetorical question is “no, nobody does care,” and abuse is both acceptable and normal, which in turn undermines investor confidence.

Ease of Doing Business

The government is aware of this and plans to “increase efforts to audit existing buildings and enforce the country’s zoning and building codes,” which are considered by many in the property industry to be a hindrance to investment say CNBC.

To illustrate the point newswires are quoting the World Bank’s Ease of Doing Business report, which claims it takes more than 40-days and almost USD 5,000 for a company to apply for an IMB for a 1,300-square metre, two-level warehouse in Jakarta. A similar application in Kuala Lumpur takes just 30-days and costs around USD 860.

Building permits in indonesia replaced by standards

According to CNN Indonesia, Djalil did not confirm whether the entire IMB process would be removed or simply streamlined but in either case it would not mean developers will be left unregulated with no building codes or rules to abide by. He explained as permits are reduced and removed the number of building inspectors will be increased to ensure standards are met.

Djalil suggested “later we will change the permits to standards … this will be a paradigm shift. If you want to build a building, go ahead, but if you don’t meet the standards, we will dismantle it. So, be responsible. If there are violations of the standards there will be severe and detrimental sanctions, even convictions,” he said.

 

 


Article source: https://www.gapurabali.com/news/2019/09/25/building-permits-be-revamped-under-omnibus-law/1569381093

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Indonesia’s Super-priority destinations infrastructures to be Completed by 2020 https://invest-islands.com/indonesias-super-priority-destinations-completed-2020/ https://invest-islands.com/indonesias-super-priority-destinations-completed-2020/#respond Fri, 27 Sep 2019 06:08:58 +0000 https://invest-islands.com/?p=11913 The Indonesian government has earmarked 9.4 trillion rupiah (US$668 million) for the development of basic utilities and supporting infrastructure in the five super priority destinations next year. Of the total budget, Lake Toba has been allotted 2.2 trillion rupiah; the Borobudur area, 2.1 trillion; Labuan Bajo, 300 billion; Mandalika 1.9 trillion; and the remaining will […]

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The Indonesian government has earmarked 9.4 trillion rupiah (US$668 million) for the development of basic utilities and supporting infrastructure in the five super priority destinations next year.

Of the total budget, Lake Toba has been allotted 2.2 trillion rupiah; the Borobudur area, 2.1 trillion; Labuan Bajo, 300 billion; Mandalika 1.9 trillion; and the remaining will go towards Likupang, the latest added development area in North Sulawesi.

 

Indonesia's super-priority destinations
Kuta Mandalika investment hubspot | Invest Islands

 

Mandalika project in Kuta Lombok

 

With the funding injection, Indonesian president Joko Widodo expects the development of the infrastructure to be finalised by 2020 so that private investors can start building facilities in those areas.

The government and relevant stakeholders are finalising the Integrated Tourism Master Plan for the super priority destinations.

In the meantime, the Indonesia Investment Coordinating Board (BKPM) also offers super deduction tax for investors in the destinations.

These latest developments were revealed at the third Coordination Meeting of Ministry of Tourism with Related Government Agencies 2019 in Jakarta last week.

Indonesia minister of tourism Arief Yahya said: “Basic utilities and basic infrastructure development is the government’s commitment to the investors. We have done the detailed engineering design and the critical success factor of each destination has been addressed.”

Arief elaborated that the critical success factors in the Borobudur area – which includes the Yogyakarta-Solo-Semarang triangle – are the construction of the new Yogyakarta International Airport, which is targeted to be fully operational by March 2020, and the development of a bypass road to Borobudur.

Over in Lombok, development works include the construction of the MotoGP Circuit in Mandalika, a bypass road between the Lombok International Airport and Mandalika, and an extension of the airport runway.

 

Indonesia's super-priority destinations
MotoGP Lombok 2021 circuit Mandalika | Invest Islands

 

MotoGP Lombok 2021 in Kuta Mandalika 

 

He said that with the new infrastructure in place, investors are expected to start developing facilities in those areas.

To attract more investors to inject money into those destinations in the meantime, BKPM’s deputy of planning Ikmal Lukman said: “BKPM offers investors the ease of direct investment in these special economic zones and the advantage of super deduction tax in talent development.”

 

 


Article source: https://www.ttgasia.com/2019/09/19/infrastructure-development-in-indonesias-super-priority-destinations-to-complete-by-2020/

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Growing global interest boosts demand in Indonesian property market https://invest-islands.com/global-interest-demand-indonesian-property-market/ https://invest-islands.com/global-interest-demand-indonesian-property-market/#respond Tue, 24 Sep 2019 03:16:10 +0000 https://invest-islands.com/?p=11846 Indonesia’s largest International Property Expo is scheduled to take place in four cities simultaneously in September attracting hundreds of developers. Real Estat [sic] Indonesia (REI) together with Dyandra Promosindo and Rumah.com are planning to hold the Indonesia International Property Expo (IIPEX) 2019 from September 21-29 in Jakarta, Bali, Medan and Surabaya. The event is slated […]

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Indonesia’s largest International Property Expo is scheduled to take place in four cities simultaneously in September attracting hundreds of developers.

Real Estat [sic] Indonesia (REI) together with Dyandra Promosindo and Rumah.com are planning to hold the Indonesia International Property Expo (IIPEX) 2019 from September 21-29 in Jakarta, Bali, Medan and Surabaya. The event is slated to become the largest Property Expo in Indonesia.

In a recent press conference, Country Manager of Rumah.com, Marine Novita, said “this event was created to call investors back to invest in Indonesia.”

luxury properties in Indonesia
Invest Islands luxury residences | © Invest Islands

 

 

The time is right

This is a well-timed call to action as President Jokowi’s second term officially begins in October and he is preparing what The Jakarta Postare calling a “bold reform agenda to lure foreign investment.”

Details have yet to be released but Thomas Lembong, Chairman of Indonesia’s Investment Coordinating Board (BKPM) is being reported by The Jakarta Post as saying “there will be massive cuts in terms of regulations, requirements or licenses that have burdened us all,” adding these reforms are “expected to open doors for both domestic and foreign investment, which would also add jobs.”

 

Read more on the Indonesian tax cuts plan to boost foreign investments

 

Property market confidence

Tribun News are reporting the results of the Rumah.com Property Affordability Sentiment Index H2-2019 survey, that as many as 61-percent of those surveyed expressed optimism and claimed to be satisfied with the national property market climate with 44-percent planning to buy property within the next year.

Michael Bayu, Director of Dyandra Promosindo, one of the IIPEX 2019 organizers, anticipates the Expo will draw 200-developers and 1000-property projects. “And this year more middle – low property projects, because there are more millennials than last year,” Tirto are reporting.

Embracing technology

This year will also see the use of the latest Real Estate CRM system called Fastkey – technology that is designed to automate and streamline the property sales cycle from launch to close of sale.

Bangsa Online are reporting Ir. Danny Wahid, M.T., Chairman of REI DPD as being hopeful Fastkey will encourage more people to “close on the spot.”

Indonesia has embraced technology and all-things internet more than any other country in Southeast Asia.

Indonesia is #1 for online transactions

Gapura Bali recently reported the Gross Merchandise Value (GMV) across the Southeast Asian region reached an eye watering USD 23.2 billion (over IDR 336 trillion) in 2018. With Indonesia ranking #1 for e-Commerce transactions.

According to Tempo, Google’s Indonesia Managing Director, Randy Jusuf, claims Indonesia’s GMV had increased from USD 10.9 billion in 2017 to USD 12.2 billion in 2018 and predicted that this would reach USD 53 billion by 2025.

This was higher than Malaysia (USD 2 billion), The Philippines (USD 1.5 billion), Singapore (USD 1.8 billion), Thailand (USD 3 billion) and Vietnam (USD 2.8 billion.)

Expo Details

  • Jakarta: at the Jakarta Convention Centre (JCC), Hall A from 21-29 September 2019
  • Denpasar: at Level 21 Mall from 25-29 September 2019.
  • Surabaya: at JX International (former East Java Expo) from 25-29 September 2019.
  • Medan: at Plaza Medan from 25-29 September 2019

 

 


Article source: https://www.gapurabali.com/news/2019/09/18/growing-demand-and-technology-boost-interest-indonesian-property-market/1568768978

 

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Owning luxury properties in Indonesia to get cheaper for foreigners https://invest-islands.com/owning-luxury-properties-in-indonesia-foreigners/ https://invest-islands.com/owning-luxury-properties-in-indonesia-foreigners/#respond Wed, 18 Sep 2019 05:58:17 +0000 https://invest-islands.com/?p=11815 Bali, Indonesia’s top tourist destination, is poised to attract overseas buyers after the government recently raised the threshold on luxury tax, according to analysts. In June, the administration of President Joko Widodo announced that the limit for luxury tax of 20 per cent for houses and flats would be increased to 30 billion rupiah (US$1.4 […]

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Bali, Indonesia’s top tourist destination, is poised to attract overseas buyers after the government recently raised the threshold on luxury tax, according to analysts.

In June, the administration of President Joko Widodo announced that the limit for luxury tax of 20 per cent for houses and flats would be increased to 30 billion rupiah (US$1.4 million) from 20 billion rupiah, effectively excluding many transactions in the high-end property market.

 

luxury properties in Indonesia
Awang Luxury Residences | © Invest Islands

 

 

Read more on how foreigners can purchase properties in Bali 

 

Jakarta already allows foreigners to own landed property on a 30+20+30-year scheme. Foreigners are initially allowed to own the property for 30 years, with a subsequent extension of 20, followed by another 30 years.

Indonesian developers, however, are pushing for an upfront 80-year permit for foreign homebuyers. Previously only Indonesian citizens could own land titles.

“This is a big change,” said Georg Chmiel, executive chairman at Juwai.com, a Chinese website for buyers overseas property. “Foreigners have the right to possess property for up to 80 years and are much less likely to pay 20 per cent sales tax when selling. We expect demand to increase.”

The relaxed rules reflect Widodo’s goal, who was re-elected for a second term in May, to attract more foreign investment into the country to fulfil his election promise to boost Indonesia’s economic growth to 7 per cent annually from about 5 per cent currently.

luxury properties in Indonesia
Torok eco-Luxury villa | ©Invest Islands

 

“Policies from the Indonesian government are becoming more investor friendly, forward looking and market driven. The government is now opening up to foreign investors and providing a level-playing field to all stakeholders. That gives a signal for global investors who are looking at the region from a strategic perspective,” said Shan Saeed, chief economist at property and investment company IQI Global.

Property consultancy Savills reckons that the government’s initiative to support the high-end segment will benefit the property market in Bali.

Under Indonesian rules, only foreigners who have a special permit to work or stay in Indonesia are allowed to buy property in the country, but those who use a nominee or register a company in the country can also buy real estate, and Bali is high on their list.

“We understand places like Bali, Batam and Lombok have a lot of foreign property owners,” said Anton Sitorus, director and head of research and consultancy at Savills Indonesia. [Bali is attractive because of its] low price, natural beauty and quality of developments that are comparable to other popular places like Phuket and Koh Samui [in Thailand].”

A villa in Bali is priced at around US$1,100 to US$2,300 per square metre, according to Global Property Guide, which tracks real estate markets worldwide.

Juwai’s Chmiel said that with Widodo’s re-election, Indonesia’s steady economic growth, and the government’s plan to invest in infrastructure, the Southeast Asian country’s appeal for second homebuyers has improved considerably.

“We believe the growth prospects are excellent,” said Chmiel.

 

 


Article source: https://amp.scmp.com/business/article/3026316/bali-beckons-indonesia-makes-it-cheaper-overseas-investors-buy-expensive

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