<a href="http://stage.redwing-asia.com/investor-posts/the-largest-foreign-investors-in-indonesia-tech/attachment/post-foreign-investors-graphic/" rel="attachment wp-att-1960"><img class="alignnone size-full wp-image-1960" alt="Post - foreign investors graphic" src="http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg" width="700" height="180" /></a>
<h4 style="text-align: justify;">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>
<h5 style="text-align: justify;"><strong>Indonesia has already seen two foreign investment waves
</strong></h5>
<p style="text-align: justify;">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>
<p style="text-align: justify;">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>

<h5>The first wave: Yahoo, daily deals, and more</h5>
<img alt="Koprol-Yahoo logo" src="http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg" width="109" height="30" />   <img alt="Groupon Disdus logo" src="http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png" width="74" height="31" />   <img alt="DealKeren logo" src="http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png" width="90" height="30" />  <a href="http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/" rel="attachment wp-att-789"><img alt="Rumah123 logo" src="http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png" width="154" height="29" /></a>
<p style="text-align: justify;">With Yahoo's surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world's map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>
<p style="text-align: justify;">Unlike many frenzies, where the common end result is buyer's remorse, a number of these acquisitions led to seller's remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>

<h5>The second wave: establishing a beach-head</h5>
<p style="text-align: justify;">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>
<p style="text-align: justify;"><a title="Foreign investors" href="http://stage.redwing-asia.com/investors/foreign-investors/">[Read the full piece]</a></p>
&nbsp;