Company owners from all over the world choose to relocate their companies for any of a variety of reasons. Some may do so because of tax advantages offered by the country to which the business is being relocated. Others may relocate their company because they believe that the products or services provided by their company are more marketable in the new country than in the original country. Still others might relocate their company out of a desire to expand the reach of the company and make it more well-known in other countries.
The business activities of relocated foreign companies serve as a boost to the economy of the country to which they have relocated. This is because these companies are to pay taxes on the income which they have received in the new country. These taxes are then paid to the government which will then use the tax money in ways which will be of benefit to the country’s economy. Foreign companies which have established business operations in another country also help to reduce the unemployment rate of that country by providing opportunities for employment. In this matter, larger companies can make more of a contribution than smaller ones because they are able to provide more open positions for job seekers.
Due to the benefits provided by relocated foreign companies, the Indonesian government has taken steps which are expected to draw more foreign companies to the country’s shores.