The Benefits of PT PMA in Indonesia is a lot. It is also the reason for the Indonesian government’s decision to create more incentives for foreign investors. The recently introduced Omnibus Law is one of the examples. The law heavily stresses incentives to welcome more foreign investments to the country.
Benefits of PT PMA Investing in Indonesia
To begin with, there has been an increase in foreign direct investments in Indonesia. The increasing number of foreign investments in the past years shows the large benefits of PT PMA. Moreover, foreign investors have a large interest in Indonesia’s rich natural resources. The rich natural resources create lucrative potential projects.
The country is home to around 200 million population and is the largest economy in the Southeast Asian region. In addition, the growing economy of the country also provides a large opportunity for foreign companies to invest in. Nationwide scale projects like government infrastructure have been one of the focuses in Indonesia in the past 6 to 7 years.
One of the benefits of PT PMA is the possibility of getting involved in these types of projects. For example, railway or highway construction projects. Aside from government projects, foreign investors can also find many lucrative opportunities in other sectors. Industries like metal-based industries, agriculture, food and beverages, trading and consulting are some of the industries that are popular with foreign investors.
More Reads: A Slice of Opportunity with PT PMA in Indonesia
Several Benefits of PT PMA to Indonesia
The benefits of PT PMA in Indonesia can be seen through several economic perspectives. In general, all of those factors lead to an increase in GDP and improvement of human resource. Here are the lists.
– Creating Economic Stimulation
When foreign companies invest in the host country, they will be bringing capital from abroad as well as technical knowledge. Once they start profiting from the business, they will contribute to the increase in money circulation. Furthermore, foreign companies that tap into previously unexplored industry will indirectly create an opportunity for local companies.
– Providing Transfer Knowledge
The technical knowledge that foreign investors bring will not only aid the company to operate well but will also help with transfer knowledge to the local manpower. As mentioned before, foreign companies are usually experienced and knowledgeable in their area of industry. By bringing this up to date knowledge as well as technologies to the host country, it will improve the quality of the local human resource.
– Creating Job Employment
The benefits of PT PMA investing in a developing host country is perhaps cheaper labour. However, this benefit goes both ways for the host country as well. Foreign companies in the country will help to create a job market for the local population. These job markets will help to increase the productivity of the area, decrease the unemployment rate, and stimulate the micro economy of the region.
The benefits of PT PMA to a host country is valuable to the development of an economy as well as to the company itself. Foreign companies investing in Indonesia get to enjoy cheaper labour, large market access, and vast business opportunities. On the other hand, the country will be able to decrease the unemployment rate, increase human resource quality, create an economic stimulus that doesn’t solely rely on quantitative easing and create a business opportunity for the local business as well.
Setting Up PT PMA
If you want to know more about PT PMA or is interested to establish a foreign company in Indonesia, MESO is here for you. Feel free to contact our agents through our Live Chat on our website, or send us an e-mail. If you are in need of a quick response, you can also contact our team through Whatsapp.