Recent challenges relating to COVID-19 and continuing supply chain disruptions have forced international companies to reflect on the efficiency and stability of their operations. We are coming into an era of great uncertainty for both businesses and economies, as systems and processes that have worked seamlessly for over a decade start to lose their balance.
In Asia Pacific, countries have the added stress of navigating trade disputes. Companies are becoming wary of having all their eggs in one basket, and countries such as Indonesia are positioning themselves to offer alternative production facilities should disputes become more problematic.
So far, seven large international companies have confirmed their relocation of production to Indonesia. The benefits of establishing production in Indonesia include reduced costs of labour, rapidly developing infrastructure, tax incentives and favourable economic partnerships with countries such as Australia.
However, Indonesia is renowned for its complicated and inefficient bureaucracy processes. Bribery is rife in the country as businesses struggle to navigate the overlaps of jurisdictions between national, provincial and regional governments.
Safety and security are another concern for many foreign companies. Huge socio-economic divides have been a breeding ground for crime. The crime rate in Indonesia has been steadily climbing for the past few years and little has been achieved by way of reducing the numbers.
Indonesia also ranks high on travel warnings, with Jakarta listed as a high-threat location by the U.S. Department of State. Travellers are advised to exercise caution due to terrorism, civil unrest and natural disasters such as flooding.
Suitable infrastructure is also lacking in many cities across Indonesia, with Jakarta being one of the worst places on the planet for traffic congestion.
Nonetheless, as a developing market, obstacles are to be expected. Many issues related to relocation can be alleviated by utilising local knowledge. Understanding the daily norms, social structures, and business practices of Indonesia is the first step to fully capitalising on what the country has to offer foreign corporations.
ASAP Group has extensive experience working across Indonesia and are well-versed in the processes that go alongside relocation of facilities. We offer Static Guarding solutions for new facilities or those currently under construction.
As companies make the big step of commencing operations in a new country, we are on hand to provide Security Risk Assessments, Executive Protection and Secure Ground Transportation to reduce risk while travelling in Indonesia.
Not only are we specialists in Executive Protection, but we also offer expert consultancy services and security training for companies firmly establishing their operations following international best practice. For more information on how we can assist your company in relocating to Indonesia, get in touch via our website or email us at [email protected] You can also reach us by phone at +62 831 14473628