8 Most Potential CitiesForeigners Can Invest in Indonesia Other Than Jakarta and BaliJakarta, August 2016

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The Potential of Indonesia

Indonesia is a unique country with countless of resources and diversities that make this country is rich with various business potentials.Each province in Indonesia has its own prospects that can attract foreign investors to do businesses. However, two most favorite destinations that foreign companies are familiar with only Jakarta and Bali, whereas in the reality, other major Indonesian cities also have hidden jewels that can be your next gold mines. In this presentation, we will discuss 8 most investment-friendly cities in Indonesia, other than Jakarta and Bali.

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1. Surabaya, East JavaSurabaya is one of Indonesian cities with the highest property growth. Even, this city is the in the top five cities in Asia to invest in the property sectors. One of the reasons is because this city is a business gate for companies that want to invest in the eastern region of Indonesian provinces. Apart from that, Surabaya is also lucrative for its industrial and trading sectors.Pic source: picodio.com

One great advantage of investing in this metropolitan is because of the relatively lower cost of resources and living expenses compare to the great capital of Jakarta. This condition will reduce the initial cost to start and run a new foreign company. Sources: propertidata, disperindag-Jatim, antarajatim

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2. Pekanbaru, Sumatra

Pic source: entrancenews.com

Currently, Pekanbaru is the host of several mega-foreign companies in petroleum, oil, pulp, wood-sawmill, rubber-processing, as well as CPOs industries. Also, as one of the major tourism gates – especially tourists from Southeast Asian and other Asian countries, it also a perfect place for tourism industries. Shopping centers and properties are other strengths that this city has that invite many new PMAs to invest

Pekanbaru is appointed to be one of the best cities for investment in Indonesia for 3 years in a row (2014, 2015, and 2016). This is the 9th largest cities in Indonesia with the highest money and banking rotation in Indonesia.

Sources: pekanbaru.go.id, seputarnkri, rimanews, bpmd Riau

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3. Bandung, West Java

Pic source: www.we-gov.org

Sources: bandungbisnis, galamedianews, jabarprov

Moreover, in 2015, the foreign direct investment in the West Java Province hit the amount of 77 trillion rupiahs – exceeding the amount of FDI in Jakarta, which was only 64 trillion – and this number continues to grow, especially in its several big cities, like Bandung (Bandung contributed 9.4 trillion rupiah for its FDI in 2015).

Creative industry is mushrooming in this capital city of West Java Province. More interestingly, there are many startup companies showing how open the people and the government are for new ideas.

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4. Yogyakarta

Pic source: ukdw.ac.id

Sources: appejawa, jogjakota, quaresgroup

Food and beverage, retail, automotive, textile, pottery, handicraft, furniture, fashion, jewelry (especially silver), and leather are some popular industries in Yogyakarta. Its fertile soil is also perfect for agricultural and agribusiness sectors. Transportation and machinery industries are other potential fields in this city.

In terms of investment, tourism Industry is the biggest magnet of this city. Property is another field that attracts investors because the land is vast with beautiful sceneries and perfect atmosphere to live, study, and do business.

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5. Makassar, South Sulawesi

Pic source: getlostmagz.com

Sources: pojoksatu, kompasiana, rakyatku, universitasbosowa, makassarterkini, liputan6

The economic growth is very high in Makassar, exceeding major areas in Indonesia. The purchasing power remains high, the income per capita increases, and the businesses survive – some even develop very well.

Makassar – in the leadership of the current Mayor – has issued a policy to invite foreign investors in some of its mega projects, including transportation, energy, maritime, fishery, trading, tourism, health care services, property, and infrastructures (check out the latest negative investment list). Especially for property, the chief of Indonesian Real Estate (REI), said that this year, the prospect of real estate development in Makassar is positive due to the high economic development in Sulawesi.

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6. Medan, North Sumatra

Pic source: www.semedan.com

Sources: medanbisnis, mpi-update, kemenperin

In general, Medan is in the top 10 of best cities for property investment in Indonesia 2016. It is because of its vast area—the 4th largest cities in Indonesia after Jakarta, Surabaya, and Bandung and the 1st largest city outside Java—and excellent economic development.

Medan is also one of the busiest cities in Indonesia, with its main seaport that contributes to one-fifth of the total containerized export in Indonesia. It shows that trading is another strength that this city offers.

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7. Samarinda, East Borneo/Kalimantan

Pic source: cityofsamarinda.blogspot.com

Sources: prokal, kadin, kaltimprov

Borneo or Kalimantan has become a target for Foreign Direct Investments because there are 3 provinces that are appointed as the 10 most targeted provinces (out of 33) for FDI in Indonesia. One of the best destination is Samarinda, the capital city of East Borneo Province.

In 2015, the total total investment in this city was 7.1 trillion rupiahs. Property sectors contributes to 20% of the number. Other interesting sectors include trading, mining, oil, and retail industries.

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8. Semarang, Central Java

Pic source: indonesiaexplorer.net

Sources: okezone, cnnindonesia

Moreover, Semarang is the 5 biggest cities in Indonesia with dense population. Also, it is close to several industrial cities, but relatively with better infrastructures, facilities, and entertainment.

The development of industrial areas in Semarang as well as the growth of retail and trading sectors make Semarang a perfect destination of investment. Because of its demographic, many companies are labor intensive companies, such as apparel, machinery, textile, etc.

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Our VisionTo be leading consulting firm of business services to clients expanding and operating in Indonesia.

Our Mission To provide full-range of market-entry and corporate services to enable our clients to focus on their core business and activities in Indonesia and beyond.

PT. Cekindo Bisnis Grup is a leading consulting firm of Market-Entry and Corporate secretarial services to clients expanding and operating in Indonesia and further to Southeast Asia.

Our ValuesClient-focusedExcellence performanceKnowledgable locallyIntegrity moralNormative operations standardsDelivered on-timeOne stop services provider

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Our main services:

Business Set Up

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Recruitment & HR Establishment

Payroll Management

Accounting & Tax Reporting

Visa & Work Permit

Mystery Shopping

Local Distributor & Partner

Buying Agent Office Space

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Senior AdvisorProf. Dr. Rahardi Ramelan

Relevant Experience

Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup. Hi is a Research Professor at the Agency for the

Assessment and Application of Technology. The honorary degree of Doctor Honoris Causa from Monash

University, Australia and Northeastern University Boston.

Minister of State for Research and Technology of the Republic of Indonesia and Chairman of the Agency for Assessment and Application of Technology (BPPT) in the Seventh Development Cabinet of the Republic of Indonesia.

Minister of Industry and Trade in the Development Reforms Cabinet of the Republic of Indonesia and Chairman of National Logistic Agency.

Deputy Chairman for Industrial Analysis and Vice Chairman of the National Development Planning Agency of the Republic of Indonesia

Several management positions and responsibilities related to Indonesian Aviation industry, the Weapon industry.

Prof. Dr. Rahardi Ramelan

Profile Overview

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Principal ConsultantMichal Wasserbauer

Michal is currently Principal Consultant at PT Cekindo Bisnis Grup. He has more than 5 year‘s experience in the

Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of

Business Feasibility Studies. He has worked for various industries, namely Grocery and Marchandise Retail,

Energy, Medical Device, Heavy and Automation Industries.

+6281282300584 | michal.wasserbauer@cekindo.com

Michal Wasserbauer

Market opportunities valuation Investment analysisPerformance management Feasibility studies

Strategy planningStakeholder managementMarketing consultancy

Profile Overview

Relevant Experience

Relevant Skills

Multinational grocery and general merchandise retailer: Capital Investment Appraisals

World‘s largest student and recent graduates-run organisation: Financial Controller

International consultation company: Market Expansion Consultant

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Principal ConsultantNurmia Agustina

Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup. She has wide experience in the areas of Business

Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development &

Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change

Management. She has worked for various industries, namely Energy & Resources, Telecommunication, Retail,

Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.

+628119691987 | nurmia.agustina@cekindo.com

International Management company: Management & Legal consultant

Chamber of Commercial: Head of Business Processing Section

Nurmia Dwi Agustina

Corporate lawOutsourcing processesCompany formationAcquisitionsProject ManagementCompetitive Analysis

Business PlanningRisk ManagementTalent Management StrategyRecruitmentVisa & Work PermitChange Management

Relevant Experience

Relevant Skills

Profile Overview

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