The economy of Indonesia is the biggest in Southeast Asia and is seen as one of the emerging market economies with greatest potential for future growth.
Indonesia is a member of G20, hosting the summit in 2022. Classified as a newly industrialised country, it is 7th largest in terms of GDP
Recent Macro
- GDP contracted in 2020, due to the Coronavirus pandemic, but 2021 has seen a positive start, and this is expected to improve further through the year
- Indonesia ranked 73rd in the World Bank’s Ease of Doing Business Index
- The Gross Domestic Product per capita in Indonesia was last recorded at US$ 4,135 in 2020
- GDP per capita in Indonesia averaged US$ 2,137 from 1960 until 2019 (source: World Bank)
Key info
Currency
- Currency of Indonesia is the Indonesian Rupiah (IDR) - often property prices are pegged to the US$
Climate
- Moist tropical climate with high even temperatures all year round
- Annual range from the low 20’s to low 30’s ℃ (mid 70’s to upper 80's ℉)
- Main wet season is December - March and the dry season is May - October
Tax
- Non-residents are subject to withholding tax of 20% on gross income
- Transfer tax is levied on the sale of property at a flat rate of 5%
Hospitality
- Travel & Tourism in Indonesia grew by 2.7% in 2019 to an industry revenue of US$ 18bn. This fell dramatically in 2020 due to Coronavirus, but is expected to reach pre-pandemic levels entering 2022
- Number of international tourist arrivals to Indonesia in 2019 reached 16.1m people, up 1.89% from 2018
- Malaysian tourists benefit from the locality of Indonesia, and account for 18% of all international arrivals
Property
- The property market cooled in 2019, with relatively muted price increases of around 1.8%
- Foreigners cannot currently own freehold properties or land in their own names
- Foreigners can own properties through a leasehold structure and the normal maximum lease length is 80 years
- Notary / legal fees for purchasing property are generally between 1-2% and paid by the buyer