Investing in Indonesia 2015
2013 and 2014 were eventful years for Indonesia’s economic, investment and political landscapes.

Strong economic fundamentals in 2013 enabled the country to ride out a temporary economic "blip" that helped cool a rapidly growing economy. A year later, in 2014, the country’s economic growth slipped to the lowest levels since 2009. Domestic consumption, the main driver of Indonesia’s economic growth, declined driven down by falling global commodity prices, lifting of fuel subsidiaries, a strengthening US dollar and depreciation of the Indonesian rupiah.

What of 2015 and beyond at a time when the economy is growing at its slowest pace in five years, and needs a boost from investment in infrastructure, education and other key sectors?

While the current 2015 outlook is challenging, the longer term view is more positive, notwithstanding the likelihood of economic policy quirks and political "hiccups" along the way.

Having an appetite for risk is fundamental to successfully investing in an emerging economy like Indonesia and reaping the benefits and opportunities from a large, rapidly expanding population and all the upside of a quite remarkable economic growth story.

This publication is intended as a general guide to investing and doing business in Indonesia. It is useful for foreign investors looking to enter the Indonesian market for the first time and as a reference document for established foreign and domestic Indonesian investors.

Within are practical insights and intelligence drawn from KPMG experience at the transaction "coalface" and through providing transaction, M&A and tax advisory services to foreign and local investors and lenders.
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