Putting Indonesia on the Map

IndonesiaIndonesia has not traditionally been the go-to place for US investments. It’s rather usually been places like China Americans have flocked to when seeking a place in Asia in which to put their money. Indeed, as was well put by Sham Gad, in an article in Investopedia, entitled, ‘Investing in China,’ US investors into the region get “the advantage of a U.S.-regulated, GAAP-adhering public company along with the profit growth potential coming from China.”

Now though Indonesia might be coming into its own. Easing more investment regulations as in its most recent business announcement, this will boost the rupiah and have the potential to encourage somewhat recalcitrant investors to put their money into the region.

One of these procedures would actually let foreign investors “park their profits onshore” which could assist in boosting a currency that has dropped nearly 19 percent against the dollar this year. This could lead to investors getting returns of anywhere between one and two percent points higher than what they have in Singaporian banks, which is certainly a much more attractive option.

The fact that Obama visited Indonesia twice in his first term also can’t hurt the situation. As Senior VP for Asia at the US Chamber of Commerce, Tami Overby recently said, there will be more regional competition for foreign investment when the Trans-Pacific Partnership trade deal is ratified and takes effect, most likely within the next two years.

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