Profit Opportunities in Indonesia

Indonesia is one of the most exciting countries in the world. It is the fifth largest population in the world but only the 19th largest economy. To me, that means that it should grow faster than most places in the world to close that gap.

The current government is doing the right things with a stable monetary policy. Inflation is not a problem. The government is looking to improve the currently terrible infrastructure though that is moving slowly.

The country has been stable for decades. It is a generally secular society but with a Muslim overlay.

The biggest problem? Corruption. Just about every level of the government is corrupt which makes it hard to run a business there.

Having all that. There are unbelievable opportunities for making money there.

I was just in Batam which is an island just next to Singapore. The Indonesian government has designated it as a Free Trade Zone as a way to feed off the incredible economy of Singapore. This means that there are no duties or customs for products coming into and out of Batam. Of course, the economy in Batam is one of the strongest economies in the world as a result.

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One problem is that education is not that great, particularly compared with Singapore. English language skills are not great.

Offsetting that is the very low wages that have to be paid. The basic salary in Batam is about $150 per month. Repeat: $150 per month. That means you can have a cast of thousands for little money. You can make a lot of money here!

Manufacturing or distribution of goods would be great here. The cost of setting up a plant and hiring people should be actually cheaper than China and the Free Trade Zone makes it very very attractive.

 

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4 Responses to Profit Opportunities in Indonesia

  1. corey wallerson says:

    How can I profit there and with what products? I’m Very interested. Thanks
    Corey

    • courtneyds says:

      The key is that it has to be manufacturing related. Then you can hire good people for less than $500 per month! Think of your profit margins!

  2. Cheng says:

    Thanks for the great article Courtney! I was in Batam last year for holiday. Public road and other infrastructure was not very well developed and maintained, but service in tourism was great and prices were very low compared to neighbouring Singapore. If manufacturing flourish on the island, it could well develop to be a worthy competitor to Singapore as a free trade zone and port services.

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