Indonesia's Investment Attractiveness for Doing Business - Term Paper Example

The Republic of Indonesia is an archipelago located between the Indian Ocean and the Pacific Ocean, providing a convenient gateway between Asian countries and Australia.  The main language is Bahasa Indonesia but English as a second language is widely used.  Its currency is called Indonesian Rupiah which is equivalent to approximately 10,000 rupiahs to 1US Dollar. Being one of our company’s investment target, relevant data have been included for future reference and perusal.  President Susilo Bambang Yudhoyono is taking drastic measures to stop the country’s economic downhill trend which includes the strengthening of its trade policies.

  Investors are gaining confidence despite natural disasters and bombings due to the opportunities presented in the economic reforms.  The Indonesian Rupiah is gaining strength against the dollars although its stability cannot really be gauged as of the present.  With the country’s membership to global organizations such as APEC, GATT/WTO and the ASEAN Free Trade Agreement (AFTA), several trade barrier laws have been eliminated and import tariff has been considerably reduced.

  Even the processing of licensing requirements has been made easier and faster as they move towards the creation of the investor-friendly environment.  Several major sea and airports have been opened and free trading zones have been established.  Since the government is extending its full support to its Foreign Direct Investment (FDI) arm, investors can expect a more relaxed and positive atmosphere as they put up businesses in Indonesia.  Bureaucratic red tape is still existent, though, so this is one of the things that we will have to deal with as it can definitely affect our time plan and even our budget.