Indonesia

Indonesia has experienced remarkable economic development over the past decade, demonstrating significant progress and stability. The country's growth trajectory positions it as a rising global player with a promising future.

◼️GDP per Capita: In 2023 the GDP per capita stood at $4’942.

◼️Economic Growth Rate: Over the past decade, GDP per capita in Indonesia has quadrupled.

◼️Overall Economic Stability: It is forecasted that Indonesia will be among the 15 countries with the largest gross domestic product worldwide by 2030. 

Indonesia's strategic location as a Southeast Asian archipelago, combined with a surge in international visitors, especially in Bali, highlights its potential as a key destination for tourism and growth in the sector.

◼️Ranking: Ranked 22nd in the world travel and tourism development index report 2024.

◼️Tourism: Indonesia is experiencing strong growth in international arrivals, with 11.68 million visitors in 2023. Bali alone aims to attract 7 million tourists in 2024.

◼️Location: Indonesia's strategic location along vital trade routes in Southeast Asia makes it a key hub for commerce and tourism, connecting the Pacific and Indian Oceans.

Indonesia enjoys strong connectivity through its major airports and extensive network of seaports, supporting international travel, tourism, and maritime shipping across the archipelago.

◼️Number of Airports: Indonesia relies heavily on air transportation, leading to significant demand for domestic and regional flights, prompting plans for major investments and the expansion of existing facilities to accommodate anticipated passenger growth.

◼️Number of Seaports: Indonesia's extensive network of seaports, managed by the state-owned Pelindo corporations, plays a vital role in facilitating maritime shipping and connectivity across, utilizing a mix of modern vessels and traditional pinisi ships.

◼️Road Networks: Indonesia boasts a substantial network of roads and highways, with a significant portion asphalted.

Indonesia’s real estate market is showing steady growth and stability, with increasing property sales and a healthy rental market. The country’s housing sector continues to attract interest, supported by consistent demand.

◼️Market Trends: Indonesia’s housing market remains stable, with the composite-16 property price index rising by 1.74% during 2023.

◼️Market potential: The market is anticipated to exhibit an annual growth rate of 1.21%, resulting in a market volume of $9’610 billion by 2029.

◼️Property Value: In Q4 2023, residential property sales rose by 3.27% from a year earlier.

◼️Rental Yields: Gross rental yields on high-end properties in Indonesia very measured in recent years around 5.7% in average.

The Indonesian business environment features tax incentives and investment-friendly policies. Investors can enjoy reduced corporate tax rates, VAT incentives for real estate, and a Golden Visa program offering long-term residency.

◼️Corporate Tax: The standard Corporate Income Tax is 22%.

◼️Real Estate Taxes: Nonresidents in Indonesia are taxed at a flat rate of 20%, though this may be reduced to 10% under double taxation agreements. Capital gains for nonresidents are also taxed at the fixed 20% rate..

◼️Tax Incentives: The Ministry of Finance extended the VAT incentive for residential properties priced up to $317’709, with a 11% subsidy until June 2024 and 5.5% until December 2024. There are 10’581 eligible units, and the loan-to-value (LTV) ratio relaxation policy remains in effect through 2024.

◼️Investment-Friendly Policies: Companies investing in designated priority sectors in Indonesia can receive a 50% corporate tax cut for investments between $6.5m to $33m and a 100% tax cut for investments over $33 million, lasting 5 to 20 years.

◼️Indonesia Golden Visa: Indonesia’s Golden Visa offers 5 or 10-year residency for investors. Individuals qualify by investing at least $350’000 for a 5-year visa or $700’000 for a 10-year visa in property.

With a Prime Residence or Hotel Investment from Titans RE, you can benefit from Indonesia’s strong tourism recovery and growing domestic travel demand, creating a promising opportunity for both luxury real estate and hospitality investments.

Regulatory or legal restrictions may apply. Please book an advisory call for more information.

Indonesia demonstrates a strong commitment to enhancing the well-being of its citizens through advancements in healthcare, education, safety, and overall living standards.

◼️Healthcare: Indonesia's healthcare system has made significant strides toward universal coverage, with the National Health Insurance (JKN) scheme successfully expanding access to over 95% of the population

◼️Education: With more than 52 million students, three million teachers, and 400’000 schools, Indonesia has one of the largest education systems globally

◼️Safety: Low crime rate, scoring 34 out of 100 on the 2023 Corruption Perceptions Index.

◼️Living Standards: Indonesia's Human Development Index (HDI) continues to show steady growth and maintains a high level.

Indonesia features a rich and diverse culture reflected in its traditions and languages, alongside a vibrant array of recreational activities.

◼️Cultural Richness: Indonesia's culture is incredibly rich and diverse, encompassing a vibrant tapestry of traditions, languages, and influences from ethnic groups across its vast archipelago.

◼️Recreational Activities: Recreational activities in Indonesia are diverse and vibrant, offering a range of options from cultural festivals and outdoor adventures to water sports and culinary experiences.

◼️Lifestyle Amenities: Lifestyle amenities in Indonesia include diverse shopping centers, dining options, health and wellness facilities, and recreational spaces.

Indonesia offers a vibrant lifestyle enriched by its diverse cultural communities, welcoming expat environment, and year-round opportunities for outdoor activities in a tropical climate.

◼️Weather: With an average temperature of 28°C and lows around 20°C during the wet season, the tropical climate is perfect for outdoor activities year-round.

◼️Local Community: The nation is home to a diverse population consisting of 1,331 ethnic groups.

◼️Population Size: As of 2024, the population stands at 284 million, with a median age of 30 years.

◼️Expat-Friendly Environment: Expats enjoy a welcoming atmosphere and high job satisfaction, ranking second in the Expat Insider 2022 survey.

◼️Language: Over 800 languages are spoken, with Indonesian serving as the primary language for communication among 94% of the population.