Samil PwC: "Korean Companies Entering Indonesia Must First Understand the Regulatory Environment"

Seminar Diagnoses Indonesian Policy and Industry Trends
Advice for Proactive Entry into Government-Promoted Sectors such as Renewable Energy

As expectations for foreign investment in Indonesia continue to rise, experts have advised that domestic companies should prepare for successful market entry by thoroughly understanding the local regulatory environment and tax system. Analysts also noted the importance of developing entry strategies that reflect the Indonesian government's priority sectors?such as renewable energy, digital infrastructure, and healthcare?as well as the country's young population and rapid digitalization.

On June 20, Samil PwC announced that it had held a seminar at its headquarters in Yongsan-gu, Seoul, under the theme "Indonesia at a Crossroads of Change: Key Diagnosis of Policy Changes and Industry Trends." The seminar was organized to present effective response strategies for domestic companies, based on an in-depth analysis of the evolving economic policies and industrial environment following the inauguration of Indonesia's new government. The event was attended by more than 100 business representatives and experts.

On the 20th, Ryu Gilju, Client Service Partner at Samil PwC, delivered the opening remarks at the seminar titled "Indonesia at a Crossroads of Change: Key Diagnosis of Policy Changes and Industry Trends," held at the Samil PwC headquarters in Yongsan-gu, Seoul. Samil PwC

Ryu Gilju, Client Service Partner at Samil PwC, stated, "With the recent inauguration of Indonesia's new government, foreign investment is gaining momentum and attracting increased interest from domestic companies. However, it is important to closely monitor changes in the regulatory environment, such as unclear tax regulations."

Jung Taehun, Leader (Partner) of the Korea Business Desk at PwC Indonesia, discussed "Economic Policy Trends of Indonesia's New Government," highlighting both new opportunities and risks for foreign investment. Jung explained, "The Indonesian government aims to achieve approximately 8% economic growth over the next five years, with foreign direct investment (FDI) and domestic direct investment (DDI) playing key roles." He provided a detailed overview of investment opportunities for Korean companies in sectors emphasized by the new administration, including energy, mining and minerals, agriculture, healthcare, and consumer goods.

Indonesia continues to lead Southeast Asia in both the scale and number of mergers and acquisitions (M&A) transactions, with foreign investors accounting for about half of the M&A market. The most active sectors for M&A transactions have been identified as technology, energy and mining, financial services, and logistics and transportation infrastructure. Eric Darmawan, Partner at PwC Indonesia, stated, "High market potential and government support for investment policies are the main growth drivers. However, there are also challenges, such as market volatility due to policy uncertainty, currency risks stemming from the depreciation of the Rupiah, and economic volatility caused by reciprocal tariffs." He predicted that "the balance between political stability and policy flexibility will be crucial for future inflows of foreign investment."

Regarding response strategies for domestic companies to the new government's policies, Kim Honghyun, Leader (Partner) of Overseas Investment Tax Advisory at Samil PwC, recommended strengthening local partnerships in production, procurement, and research and development (R&D); proactively entering priority sectors such as renewable energy, digital infrastructure, and healthcare; and developing e-commerce and K-content strategies to respond to rapidly changing consumer trends driven by digital transformation. He added, "Proactive understanding and preparation for the local regulatory environment and tax system are essential for long-term business success."

Kim Honghyun commented, "Through this seminar, we were able to provide concrete and practical insights to domestic companies considering entry into the Indonesian market," adding, "Samil PwC will continue to actively support companies in establishing global strategies through professional analysis and advisory services on major emerging markets."

Meanwhile, Samil PwC offers comprehensive advisory services for business activities in various Southeast Asian countries, including Indonesia, through its "Southeast Asia Business Platform." The platform provides prompt and professional responses to inquiries related to market entry and business expansion in Southeast Asia.