Beyond standard market risks, expats face:

• Currency Risk: Fluctuations between the Indonesian Rupiah (IDR) and your home currency can significantly impact returns when repatriating funds.

• Regulatory Risk: Changes in Indonesian regulations regarding foreign investment or taxation.

• Political/Economic Stability: As an emerging market, Indonesia carries different political and economic risks than many developed nations.

• Cross-Border Complexity: Managing investments and tax obligations across multiple jurisdictions adds complexity.

Yes, many expats continue to use their home country or other international online brokerage accounts while residing in Indonesia to manage global investments. This is often simpler for accessing international markets. However, for direct investment in specific Indonesian-listed securities or mutual funds, opening an account with a local Indonesian brokerage or bank is typically necessary.

Indonesian tax residents are generally taxed on their worldwide income, including investment gains (interest, dividends, capital gains). Specific tax rates apply depending on the asset type and holding period. Importantly, Indonesia has Double Taxation Agreements (DTAs) with many countries to prevent being taxed fully in both jurisdictions on the same income. Navigating this correctly often requires professional tax advice.

Expats can typically access:

• Indonesian Stocks & Bonds: Via local brokerage accounts (requires NPWP – tax ID, and sometimes KITAS/KITAP).

• Indonesian Mutual Funds (Reksa Dana): Accessible through banks or asset management companies.

• International Investments: Using global online brokerage platforms (accessible from Indonesia) to invest in international stocks, ETFs, and funds worldwide.

• Property: With specific legal structures, often leasehold (Hak Pakai/Hak Sewa) rather than full freehold ownership (Hak Milik) for foreigners.

Yes, foreigners living in Indonesia (expats) are generally allowed to invest in various assets. Common options include stocks on the Indonesia Stock Exchange (IDX), bonds, and mutual funds. However, there can be restrictions, particularly concerning direct ownership of land (though structures like Hak Pakai exist) and limits in certain strategic sectors. Regulations can change, so understanding the current rules for the specific investment type is important.