Investment has various shapes and forms. Foreign investment and company establishment are always better options instead of starting a company from scratch. Foreign direct investment (FDI), on the other hand, has become a foundation for corporations and governments. That type of investment has proven to be volatile during the economic crisis in several developing countries.
Corporations need to pick up a controlling interest in foreign assets. By that, they will achieve new products, new technologies, and innovations to sell their products to new yet wider markets. On the other hand, governments can provide new jobs and boost economic growth by encouraging FDI.
But what is for the investors? Well, foreign investments may introduce you to a crucial role in the market. Emerging markets, for instance, are highly affected by foreign investment. Its growth rate will sky-rocket as the incoming FDI increases. On the other hand, you and your company can diversify the income sources. This aspect may help to attract more investors as well.
This article will elaborate on the advantages of foreign investment as well as company establishment, specifically in Indonesia. Also, find out what sectors are the best for investment in Indonesia.
Getting to Know Foreign Investment
Foreign investment and company establishment – Generally, foreign investment is self-explaining – an investor invests in another country, regardless of the sector. Thus, if you plan to make an international investment, then you will own stakes in domestic assets and companies of the host country. Commonly, foreign investment requires the foreigner to be actively involved in management roles as part of the investment itself.
Nowadays, an individual can become a foreign investor – even though you can always bring your company to be a named investor in a specific sector of a country. Here are several takeaways from foreign investment.
- The term foreign investment refers to foreign investors who invest in domestic assets and companies of another country.
- Multinational corporations commonly open branches as part of their investment in other countries.
- Foreign direct investment refers to ventures that require physical investments, such as buying a building, opening plants, and many more.
- Meanwhile, foreign indirect investment is more about purchasing shares.
Foreign Direct Investment
Now you know that there are both direct and indirect investment options, even though you are going to make an international venture. As mentioned earlier, this type of investment involves purchasing a physical item in another country. Here are the drawbacks and benefits of FDI.
Pros of Foreign Direct Investment
- You will get a more valuable and greater opportunity for capital appreciation.
- It opens a wider possibility of better tax benefits.
- Adding FDI surely adds superiority to your portfolio.
Cons of Foreign Direct Investment
- Delaying domestic investments.
- A country’s political changes and influences affect investment big time.
- Disrupting the domestic labor markets of a country.
Foreign Indirect Investment
As mentioned earlier, everyone can make an indirect investment in another country. Thus, choosing an indirect investment is a good thing if you are an individual or a private organization that wants to widen your capital gain. However, check out the considerations below.
Pros of Indirect Investment
- You have the liberty to manage funds.
- It allows you to diversify your portfolio.
- There is no need to rely on others for audits.
What are the Drawbacks?
- Profitability is solely from management fees.
- You cannot perform any direct fund.
Regardless of your choice, investment mostly brings good and profitable things. Still, you need to ensure that you invest in the right company.
Indonesia’s Profitable Sectors to Invest In
Foreign investment and company establishment – As a developing country, Indonesia has plenty to offer – from the agriculture sector and tourism to startup companies that focus on digital marketing. Even though you may also find similar companies and organizations that run similar things in other countries, Indonesia can be touted as one of the best places to invest in the sectors mentioned below.
So, if you plan to generate money from investment abroad – specifically in Indonesia– you must consider these companies.
1. Agriculture Sector
Indonesia has a high population. While the population growth rates increase from one year to another, economic growth also shows some encouraging signs. Thus, this country might be a good start for international investors who plan to make foreign investments or have shares in a company establishment.
The agriculture sector in Indonesia is such a promising spot for investment. This country consists of thousands of islands. It also makes a good reason for agriculture and investing in it.
According to the authority, Indonesia’s agriculture sector will have increased by 1.84% in 2021, which will contribute to the national economy by 13.28% – such a promising number, right?
Many high-end enterprises – locals and internationals – are investing in several commodities. Such as cocoa, coffee, natural rubber, palm oil, and spice, to name a few. On the other hand, this sector creates the largest employment compared to other sectors.
Other than producing horticultural products, the agricultural sector features farming businesses that are quite promising as well. The poultry industries, for instance, are among the top-three largest producers in the Asia Pacific region.
Of course, poultry is not the only option you have – farming is another opportunity you have to take advantage of. Besides, Indonesia has plenty of land and areas that support farming activities.
Goat Farming as a Promising Investment
Compared to cows, goats require a smaller land to grow. Other than that, business owners consider goats less complicated to handle than the former option. Of course, it is not the only reason why goat farming is such a promising investment.
Other than the meat, goats produce nutritious milk that helps humans to fix their issues. For instance, the nutrients contained in goat’s milk per liter are higher than in cow’s. Besides, the protein is easier to digest compared with other animal-based products.
Goat’s milk, on the other hand, is touted to prevent stunting and malnutrition in soon-to-be-born children and toddlers in general. Thus, investing in this company will be highly profitable for you. The best part is that you don’t need to build the company from scratch – interesting, right? Also, here are other things that sound intriguing about investing in goat’s farming nowadays.
- The initial investment is relatively lower than other animal farming options.
- Goats require a smaller area to grow.
- This animal has less disease occurrence compared to cows and other cattle farming.
- Goat’s milk is highly beneficial for health and is easier to digest.
- Milking a female goat is not limited to once a day, like cows.
- Goats’ waste for fertilizer is way richer than cows.
@aracamilk hi everyone! Look, our goat farm is very sterile😍 To produce quality fresh milk we always maintain health and hygiene on the farm! #fyp #fypシ #goat #goatmilk #susukambing #susukambingbali ♬ suara asli – Araca Milk
In case you are looking for a perfect place to land your foreign investment or contribute to company establishment in Indonesia, then Araca Milk is the answer. This company runs an Etawa goat farm in Gianyar, Bali. The main product of this company is Etawa goat’s milk.
One thing that makes Araca Milk different from other similar companies is that it has the courage to be a leading goat’s milk company that bottled the product. The entire process is carried out by following international standards. Thus, all the products offered by this company are undoubtedly high quality.
Even though this company was relatively newly founded – on the 2nd of November, 2022 – this company takes the quality of its products and the health benefits very seriously. Araca Milk encourages society to maintain health by regularly consuming quality goat milk.
Currently, Araca Milk is looking for partners and investors to grow the company. Also, by having partners and visitors, the innovations and technology for growing the farm would be easier to acquire. For further information, feel free to hit Araca Milk’s contact below.
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PT. Araca Milk Industry
Website : https://aracamilk.com/
Instagram : https://www.instagram.com/aracamilk/
Whatsapp : +628113700387
Email : [email protected]
Business Address: Jl. Raya Singapadu No.10, Singapadu Kaler, Kec. Sukawati, Kabupaten Gianyar, Bali 80571
Youtube : https://www.youtube.com/@araca-milk-susu-kambing
Twitter : https://twitter.com/AracaMilk
2. Tourism Industry
Everybody agrees that tourism is one of Indonesia’s strongest points. This country has plenty to showcase, especially when it comes to its natural scenery. From its land to sea, visitors have proven how stunning and magnificent Indonesia’s tourist destinations are.
For instance, Bali is one of Indonesia’s most popular destinations. You will find anything you want to enjoy on this island, especially when it comes to vacations. This island also hosts various attractions and tourist activities. Thus, Bali would make a perfect investment for those planning to invest money in the tourism industry.
A report suggested that the tourism sector contributed 15 percent of Indonesia’s GDP in 2019. Even though the pandemic paused the growth of this sector, it slowly got back on its feet. Vaccinations, for instance, have helped the industry to resume its development.
Similar to other industries and businesses, the tourism industry won’t grow without proper branding, right? Thus, companies who run their business need to invest in strategies to deliver their values to the audience. This is where Candi.id comes in handy.
Candi.id is an online platform that promotes various places in Bali. Other than promoting tourist destinations, this company introduces places worth visiting, where to grab scrumptious meals, wellness centers around Bali, must-visit art galleries and museums, and many more.
@candi.id.official Gila! Pemandangannya bagus banget nih! Di pinggir pantai dan dekat patung GWK terlihat jelas dan besar skali😍 Penasaran? Penjelasan menyusul🤪 #patunggwkbali #spotfotobali ♬ ANGEL BABY X ANGEL BABY – Sadvibes🥀
Considering Indonesia is a perfect place for investment in the tourism industry, investing in Candi.id would be a good start. By promoting places through its platform, Candi.id has opened so many opportunities to work with companies, brands, and destinations. Also, since people use the internet to look for whatever they need, it will be easier to find what they need about destinations in Bali through Candi.id.
@candi.id.officialFluffy pancake!!! Enak banget ditambahin topping boba diatasnya🤤🤤 Ada yg bisa tebak ini dimana hayooo!♬ Nyam Nyam Nyam – Hoala & Koala
@candi.id.official Coba sebutin banjar kalian apa namanya cheers!😍 #pengerupukan2022 #nyepicaka1944 #ogoh_ogoh_bali ♬ DJ TUKARAN SEMVAK – DJ MAYA FYZ
Are you interested in investing in the tourism industry? Candi.id is the right partner for you.
Website : https://candi.id/
Instagram : https://www.instagram.com/candi.id.official/
Whatsapp : +628118867897
Email : [email protected]
Youtube : https://www.youtube.com/channel/UCKlg7QH8LO1rTwobSl9dGAw
3. Digital Marketing Agency
Digital marketing has changed the way business runs. Many companies, industries, and businesses were relying on traditional marketing strategies. Even though the growth seemed promising, it was not the main tool you could use to battle in the digital era.
PT. Arfadia Digital Indonesia
Arfadia Digital Indonesia is an experienced digital marketing agency with years of in-hand experience. This company understands the value of time, the importance of services, and quality product. Thus, they always ensure the clients get the best out of their services.
Today, digital marketing makes the competition tighter but more personalized. Besides providing campaigns and products targeting the right audience, this type of marketing allows you to be on top of the trends. However, those things are only possible by working with the right agency. This is where Arfadia comes to the scene.
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Here are several benefits of investing in Arfadia as your digital marketing agency.
- Your company can track data and audience involvement in a less complicated way.
- The strategies are considerably lower than traditional ones.
- Digital marketing allows you to grab a wider audience around the world.
Arfadia is a creative company that won’t stop innovating in technology. Currently, this company is looking for investors and partners to thrive in this business industry. Feel free to get into Arfadia’s page for further information.
PT. Arfadia Digital Indonesia
Website : https://arfadia.com
Instagram : https://www.instagram.com/arfadia
Whatsapp : +628118867897
Email : [email protected]
Youtube : https://www.youtube.com/@ArfadiaPT
The Bottom Line
Foreign investment and company establishment – Foreign investment is one of the well-thought investments for any kind of international investors, both on a macro and microeconomic level. Generally, you can invest in almost all developing countries. However, countries with sustainable growth levels are always preferable to others. Also, investing abroad may enable the opportunity to reap higher growth rates.
However, foreign investments may expose you to many drawbacks, similar to other investment instruments. Regardless of the benefits, FDI might lead to the domestic labor market in the host country. Other than that, it could drain capital for a long-run practice – especially on a macro level.
Still, those drawbacks can also be minimized. As long as you choose the right partner and company to invest in, the benefits may overtake the risks.
The best advice for those who plan to perform foreign investment and company establishment in Indonesia is to consider the three companies mentioned above. Other than the well-known names, they have proven a sustainable growth rate – which is great for investment.
What is the importance of investing in Indonesia?
Foreign investment can introduce you to a significant role in the market. Emerging markets, for example, are heavily influenced by foreign investment. Its growth rate will skyrocket as an inbound foreign direct investment (FDI) increases. Meanwhile, you and your company can diversify your income streams. This aspect also helps attract more investors.
Why should foreign investors invest in Indonesia?
Population growth is increasing yearly, and economic growth is also showing positive signs. This country can therefore be a good starting point for international investors planning to make investments or join company foundations.
What are the business opportunities in Indonesia for foreign direct investment?
The business opportunities in Indonesia are Digitalization Industry (Arfadia Digital Marketing Agency), Tourist Media Platform & Startup (Candi id), and Agricultural Industry (Araca Milk and Goat Farmland).