The Free Trade Agreement between Hong Kong and ASEAN (about Indonesia) will be in effect on 4th July, 2020. The SME, HKET news interviewed a consultancy specializing on ASEAN market to explore the potential. Hong Kong products such as watch, toy and jewelry will have reduced tariff, and Hong Kong service providers will have better legal protection in Indonesia. Investors can transfer the investment and return freely.
Potential ASEAN with growing e-Commerce
The population of ASEAN member states is around 650 million. The economy is growing rapidly and a new middle class is under formation. Among the states, Indonesia is one of the most potential economy. This most populous country in Southeast Asia gains a lot of Chinese investment in infrastructure due to the “One belt one road” policy and American capital to build factories. Jakarta the capital and Surabaya etc are already urbanized. Following the telecommunication network completion and information technology advancement, the Indonesian e-Commerce is absolutely a new attraction. The interviewee helps firms to position and price the products, establishes business network and advise to online and offline marketing.
Further reading: Kuala Lumpur consumer behavior research – BUD Fund to Malaysia
FTA Programme of the BUD Fund
Upon the Free Trade Agreement with Indonesia will be effective soon, plus the FTA Programme (known as ASEAN Programme before) which grants 50% of the project cost up to HK$ 4,000,000, investment in Indonesia is a good opportunity to spread business risk. BizMagnet is a consultant of Government Enterprise Fund Application to help companies to get BUD Fund. It’s the right time to enter Indonesia and the ASEAN.
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