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Foreign Investment in Indonesia

Foreign Investment in Indonesia

 

ACL International is a Canadian Oil & Gas exploration and development company listed on the TSX Venture with both assets in Indonesia. Their current operations are both onshore and offshore with prolific opportunities in the properties they own. Indonesia offers the largest economy in Southeast Asia and has been a solid performer through the 2008 recession and are expected to continue that momentum for plenty of reasons:

“Indonesia offers great opportunities to foreign investors due to the country’s large and young population, rising consumption, abundant natural resources, and cheap labor. Therefore, each year foreign direct investment (FDI) realization in Indonesia tends to grow.”

The most attractive reasons for foreign investments in Indonesia are:

 

“Strong Historic Growth. Indonesia has been one of the best performing investments throughout the world economic crisis that began in 2008. In fact, it was the only economy posting any real economic growth in 2011 and continues to grow in the years since.

Less Relative Risk. Indonesia may be less risky than many emerging markets, with an average annual return of over 25% and a beta coefficient of less than 0.8, according to a February 2011 study by MSCI and Bloomberg.

Room to Grow. Indonesia's market capitalization is significantly smaller than the BRIC economies, which suggests that it has ample room to grow, even if overall growth rates were to slow down, according to a NYSSA analysis.”

 

Two risks of investing in Indonesia are inflation, which Indonesia has faced alongside it’s growing economy, and the geopolitical risk for being in Southeast Asia. While these are typical risks for any foreign investment, Indonesia has a strong Economic and Social development plan in place.

ACL International is a Leader in Indonesian Oil and Gas Exploration and Development. ACL International Ltd. has 2 key assets: A 50% interest in the Langsa TAC concession located offshore, North Sumatra, Indonesia and a 44.48% interest in a Production Sharing Contract for a block referred to as “South Block A”.

 

Sources:

 

http://www.indonesia-investments.com/business/foreign-investment/establish-foreign-company-pt-pma/item5739

http://www2.bkpm.go.id/en/investing-in-indonesia

https://www.thebalance.com/how-to-invest-in-indonesia-1979048

 

 

 

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Laura Garet

Laura is 8020 Connect’s Client Communications & Social Media Specialist. In 2014, She received her Bachelor of Communications in Information Design from Mount Royal University in Calgary, Alberta. After a couple brief positions in other marketing roles, Laura has found her home with 8020.




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