The Undeniable Financial Benefits Of Investing In Indonesia

Indonesia is one of the most significant nations in the world. And it’s made up of more than 17,000 islands. These islands are some of the most beautiful places on the planet if you’re lucky enough to visit them. 

Aside from its rich culture, excellent local cuisine, and natural beauty, Indonesia is a country on the rise. Even though it’s a developing nation, it’s a country that is seeing immense business and financial growth. 

The tourism industry in Indonesia is enormous, but that’s not the only thing going for this archipelago nation. Investing in Indonesia is an intelligent move thanks to the massive population of middle-class residential consumers, which is growing steadily. 

Read below to see why this nation should be a top contender for your portfolio diversification strategy. 

7 Reasons Why You Should Invest In Indonesia

Here are the top 7 reasons why you should consider investing in Indonesia:  

Ample Tech Investment Opportunity

Because Indonesia’s population is so large, this nation costumes a lot. And because the millennial generation is over 100 million individuals, it’s a primarily digital nation. 

This leads to growth for tech companies starting in Indonesia and expanding into the Indonesian markets. GoJek is one of the most well-known Indonesian startups. 

What started as a call center in 2010 is Indonesia’s premier ride-hailing service. Like Uber in the West, GoJek makes it easy to hail a motorbike for a ride around town or order food for delivery. 

The company does business abroad, as well. It has expanded into other nations like Singapore and Malaysia. It also has renowned investors such as Google. Many companies in the tech, media, communications, and financial industries are also emerging out of the Indonesian market. 

Even if the companies never leave Southeast Asia and make it to Western mainstream investment radars, they still serve millions of customers and are worth investing in. 

Investing in Indonesia Makes An Impact 

Indonesia is still a developing nation. The gender pay gap is enormous across the country. The median income per month is around USD 800. 

Much of the investment coming into startups is making a financial impact on millions of people across Indonesia. Going back to the GoJek example, motorbike taxi drivers saw a massive increase in earnings as a result of the platform. 

The government is building infrastructure and providing support to companies and startups, prioritizing sustainability, helping to close the gender gap, and providing jobs to those with disabilities. 

So, from an investor standpoint, each dollar you invest in Indonesia makes more of an impact than dollars invested in highly developed nations. 

Opportunity For Big Gains 

Many of the most extensive Indonesian stocks are providing impressive returns thanks to higher rates of growth. In the last year, Communication Cable Systems Indonesia (CCSI) is up over 200%. Metrodata Electronics (MTDL) is up over 100%. 

Other companies can provide equally impressive returns in Indonesia. The New York Stock Exchange features two Indonesia ETFs that you can invest in to make it easy to diversify into this market. Other ETFs are available, including some Indonesian companies and some other nations. 

For more control over how you invest in Indonesia, an account at www.monexsecurities.com.au can make it easy. 

Diversify With One Of The Largest Economies

Any savvy investor knows that diversification is critical. The industries and locations in which your investments are located help provide more portfolio diversification.

By investing in Indonesia, you gain exposure to one of the largest economies on the planet, helping to balance your portfolio. 

Are you looking for more tips like this? Head over to our blog today to keep reading. 

Finding Local Like-Minded Co-Investors And Co-Investing Today!  

The start of the ecosystem is currently growing in Indonesia. Similarly, there is a high growth of millennials and entrepreneurs who have studied abroad. Thus, it becomes straightforward to find like-minded investors and co-investors among the growing businesses.  

Additionally, there are various foreign investors who are currently open to investing in Indonesia. However, that is only possible if they can find someone who can lead them through the rules and regulations along with the cultural particularities.  

Trying to look for a foreign investor for investments can be good. However, it could possibly make closing the deal more problematic. In addition to that, a foreign board of directors can make it more challenging to get all the necessary licenses. 

A Healthy Economy

Do you know that Indonesia currently has one of the fastest-growing economies in the Southeast? It has a vibrant as well as competitive economy. How? The government of Indonesia mainly focuses on infrastructure, services, and manufacturing. 

During the recession from 2008 to 2011, the whole world suffered from a massive economic thrust. However, Indonesia has been able to keep up its performance very well during the crisis.   

In the next few decades, the world is expecting to see Indonesia as one of the top ten economies in the world as a whole! 

The Increased Rate Of Urbanization   

In recent times, people have been living in cities more than they ever did. Almost half of the population lives an urban life. On top of that, the majority of them prefer to live a modern consumer lifestyle.  

The population is demanding to buy houses and rent apartments due to the increased rate of urbanization. 

As the country’s infrastructure evolves, Indonesia will go through more developments, and there will be more projects, such as telecommunications or housing, in which people will invest.   

Things To Keep In Mind While Investing In Indonesia

So, are you looking for a scope to invest in an emerging market? Well, if that’s the case, then it’s an attractive idea. As you continue to browse through some promising and emerging countries, I would say Indonesia is a country that you should consider.  

Now, there are certain things that you must keep in mind while investing in Indonesia, such as,  

• It won’t be easy to make an equity investment in this country.  

• The logistics infrastructure is still developing.  

• Workforce innovation can be challenging for companies.  

• There is an unpredictability in government-induced decisions.  

Read Also:

• What Are The Best-Paying Jobs In Real Estate Investment Trusts?
• Is Real Estate Investment Trusts a Good Career Path – What REIT Experts are Saying
• Property Investment & How It Can Transform Your Future Financial Outlook In Australia.