Strengthen Indonesia-Taiwan bilateral relations, Bank DBS Indonesia holds 'Investment Strategy and Business Structuring in Indonesia Forum'
Indonesia, 10 Dec 2024 - Indonesia is the fourth most populous country in the world and also the largest economy in ASEAN. This year, with the inauguration of President Prabowo Subianto, who is committed to accelerating industrial advancement and transformation towards Net Zero Emission, as well as setting targets to expand foreign investment and achieve economic growth of 8 percent within three years, will provide additional investment opportunities for Taiwanese entrepreneurs who are actively developing markets in Southeast Asia.
Indonesia is Taiwan’s 13th largest trading partner while Taiwan is Indonesia’s 18th largest investor. Trade exchanges between the two countries are very active, especially in recent years with the reorganisation of global supply chains. Indonesia, with its demographic advantages, natural resources, and domestic market, has become an investment hub for companies from various countries, including Taiwanese entrepreneurs, to expand overseas business points. Therefore, to help more Taiwanese entrepreneurs capitalise on business opportunities in Indonesia, Business Weekly in collaboration with DBS Bank Taiwan and Bank DBS Indonesia held the
“Investment Strategy and Business Structuring in Indonesia Forum”
. The forum invited representatives from the Indonesian government, industrial estate developers, as well as experts in finance, to offer guidance on investment and business in Indonesia, and participate in the “2045 Golden Indonesia” vision.
In his speech, General Manager of DBS Bank Taiwan
Huang Sihan
noted that DBS Bank Ltd (Bank DBS), which currently operates in 19 global markets, and Southeast Asia, including Indonesia, has always played an important role. Therefore, in addition to introducing the value of Indonesia's investment to Taiwan, this event also helped Taiwanese entrepreneurs expand their business to Indonesia. This is carried out through, among other things, integrated networks of physical and digital points to provide efficient and reliable financial services such as cross-border payment acceptance, foreign exchange, and transaction settlement to reduce the risk of overseas investment and realise the spirit of
The Head of the Indonesian Economic and Trade Office (IETO) in Taipei,
Arif Sulistiyo
, explained the benefits of investing in Indonesia from various perspectives. He noted that in the past seven years, Taiwanese entrepreneurs have invested more than US$1.5 billion in Indonesia. Based on this strong foundation, the investment incentive policies issued by the Indonesian government can complement Taiwan's New Southbound Policy.
Increasing opportunities for successful investment in Indonesia through financial flows, taxation, and policies
In the first session of the forum, three experts analysed key considerations and planning strategies for investing in Indonesia from market, taxation, and financial perspectives. Director of Investment Department at the Indonesian Economic and Trade Office (IETO) in Taipei, stressed that Indonesia
Eko Wijanarko
, which has signed trade agreements with many major economies, would be the best channel for Taiwanese entrepreneurs to connect with the Southeast Asian market. Indonesia opens up wider access for foreign investment and simplifies investment regulations, offering more tax incentives. In addition, the Investment Sector has established a one-stop service to simplify the process of obtaining business licenses for investors or resolving issues related to the setting up of new factories that can help Taiwanese entrepreneurs seize development opportunities in the electric vehicle, high-tech, green economy, and other sectors.
With regard to investment tax in Indonesia, Director of Southeast Asia and India Business Group at PwC Taiwan,
Woranath Khemaisiri,
pointed out that companies should utilise the tax treaty between Taiwan and Indonesia to reduce tax burden as well as consider making medium and long-term planning. For example, Indonesia offers up to 60 percent exemption in investment tax in the first six years of operation, with an annual reduction of 10 percent that can be cumulated. By incorporating these decisions early in business planning, and with expert advice from Bank DBS or PwC, companies can gain competitive advantages and expand their business.
Investing in Indonesia becomes easier and more effective with the support of professional financial institutions. Head of Institutional Banking Group at PT Bank DBS Indonesia
Kunardy Lie
said Bank DBS Indonesia has been operating since 1989 and now has 30 branches across 15 major cities. “Over the years, many leading international companies have become our partners," he said. “As a bank, we understand the importance of international connectivity in facilitating cross-border transactions and creating new opportunities. Through Bank DBS Indonesia’s
Asia Connectivity
, Taiwanese entrepreneurs looking to enter the Indonesian market can leverage digital services, cross-border networks, valuable insights, and a strong understanding of local policies. This enables them to expand their reach across Asia, and grow their businesses, and access financial solutions tailored to the local market—helping them to overcome challenges and boost their chances of investment success."
Selecting Business Locations in Indonesia Based on Industry Characteristics and Development Needs
Choosing the right location is crucial when investing and setting up factories in Indonesia. Indonesia has 118 industrial zones, each offering distinct advantages for different sectors. Bank DBS invited two developers to Taiwan to present their management service strengths and future development opportunities.
Batam Island and Bintan Island, located just 20 kilometers away from Singapore, are both designated free trade zones. Chief Marketing Officer at Gallant Venture Ltd.
Edmund Lai,
who is responsible for Batamindo Industrial Estate development, explained that after 34 years of development, with its complete infrastructure and integrated management model, entrepreneurs do not have to worry about electricity and water supply, obtaining business permits and licenses, or buying land to set up factories. Once they sign the leases, companies can begin operations immediately. This has successfully attracted over 100 companies from various countries to invest. The Bintan Industrial Estate is also being developed, complete with a seaport and the first private international airport in Indonesia.
Indonesia's total population and contributes about 13 percent to Indonesia's GDP. Business Manager at PT Suryacipta Swadaya
Richard Tanggara
said the industrial town offers excellent land, sea and air transportation facilities. Currently, the town is developing an industrial corridor with a comprehensive supply chain and high transportation efficiency. By joining early, companies can secure important strategic positions.
To learn more about Bank DBS Indonesia's corporate banking solutions, visit this page:
dbs.id/id/corporate
.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named
“World’s Best Bank”
by Global Finance,
“World’s Best Bank”
by Euromoney and
“Global Bank of the Year”
by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named
“World’s Best Digital Bank”
by Euromoney and the world’s
“Most Innovative in Digital Banking”
by The Banker. In addition, DBS has been accorded the
“Safest Bank in Asia
”
award by Global Finance for 16 consecutive years from 2009 to 2024.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services that focus on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees, and the community towards a sustainable future.
PT Bank DBS Indonesia
is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
