ScandAsia has met with Terje Holte Nilsen, the Norwegian owner of Seven Stones, a provider of market entry services based in Bali and Jakarta, for a talk about his insights into the challenges faced by foreigners, in starting and running a business in Indonesia.
Navigating Indonesian law can be challenging for foreign entrepreneurs. Seven Stones was founded due to the significance of understanding the cultural and legal nuances of the Indonesian legal system. During his talk with ScandAsia, Terje shed light on the complexities of doing business in this unique and vibrant Southeast Asian environment.
Family founded
Seven Stones was founded in 2016 and is 100 percent owned by Terje, his daughters, and his half-sister. The family’s connection with Indonesia dates back to 1970, and Terje has been a permanent resident since 1993. The family’s ties to the country have evolved into a comprehensive market entry service, addressing legalities, investments, and advising on navigating the complex business landscape in general.
“The idea with Seven Stones is to provide advice on setups and structures. We are there to help handling all the necessary but perhaps less exciting aspects. However, what truly excites us is serving as representatives for our clients. We aim to find suitable partners and guide them through sensitive processes. We recognize that Indonesia prioritizes its own interests. Having a reliable local partner is crucial in navigating such procedures,” Terje shares.
Assisting Scandinavian businesses
Seven Stones initially delved into real estate, constructing villas and complexes before transitioning into a market entry agency. Not finding reliable legal partners, the firm established an in-house legal team, which has evolved into a significant aspect of the business. While collaborating with various foreign companies, a substantial portion of the clientele comprises Scandinavian-founded companies.
“We collaborate with clients from all backgrounds, but I would say nearly 30 percent of our clients are Scandinavians, with the remaining 70 percent comprising various nationalities. Although the Scandinavian market is expanding in Bali, it still doesn’t constitute a significant percentage. This is mainly due to the presence of many Australians and Singaporeans.”
The company’s association with organizations like Innovation Norway, has further solidified its role in assisting Scandinavian companies in their market entry into Indonesia.
“In practically all Norwegian embassies, you’ll find Innovation Norway serving as the business representative for the Norwegian government. Due to a governmental restructuring, Innovation Norway had to retract to Singapore. The embassy then approached us to cover that role for Indonesia in collaboration with Norway Connect in Bangkok. Consequently, we set up an office in Jakarta, situated just across the street from the Nordic embassies,” Terje elaborates.
Business growth amidst pandemic challenges
Since establishing Seven Stones in 2016, Terje has witnessed substantial growth. Even amidst the challenges posed by the COVID-19 pandemic, the request for legal assistance has been steadily increasing.
“I think the influence of COVID has spurred a broader trend, where people seek a lifestyle change. They feel discontent with their situations. I observed a growing phenomenon during the pandemic. I call it “the lifestyle change.”
The company has become a go-to resource for expatriates and businesses seeking new opportunities. But it can be difficult to navigate the complex Indonesian regulatory landscape, which is where Seven Stones steps in.
“We now have approximately 50 employees split between Bali and Jakarta to help with everything form legal counselling, tax consultation, real estate and advisory services.
The appeal of Bali for business ventures
According to Terje, the appeal of Bali extends beyond its picturesque landscapes and vibrant culture. The island has become a hub for entrepreneurs seeking “the lifestyle change.”
Many individuals, not limited to Scandinavians, are drawn to Bali to escape the monotony of everyday life. Terje highlights the increasing trend of people selling their possessions back home to fund business ventures in Bali – ranging from property development to the flourishing food and beverage industry.
“People are selling inherited properties like parents’ or granny’s houses, using the proceeds to explore new paths, such as becoming developers in Bali. The numbers engaging in such transitions are on the rise,” Terje says.
Strategic business advise
While Bali offers a myriad of opportunities, Terje warn against the risks associated with hasty business decisions.
“I have seen a surge in business opportunities in Bali, but it’s crucial for entrepreneurs to approach them with caution. Risks, including challenges in property development, legal compliance, and the potential pitfalls of hasty business decisions, underscore the need for meticulous planning and strategic guidance in this dynamic market.”
With Seven Stones, Terje aims to mitigate these risks by offering comprehensive support for long-term success. Terje emphasize the importance of strategic planning for individuals considering business ventures in Bali. Whether entrepreneurs plan to stay for a few years or make Bali their permanent home. Seven Stones advises on structuring businesses based on individual goals, providing insights into exit plans, growth strategies, and financial advice.
Scandinavian opportunities in sustainability
In line with Indonesia’s goal to achieve carbon neutrality by 2060, Terje sees significant opportunities for Nordic companies in renewable energy and waste management. Indonesia’s reliance on coal presents opportunities for transitioning to cleaner energy sources, and Terje express his passion for supporting initiatives that contribute to Indonesia’s sustainable development.
“With Indonesia’s growing focus on sustainable development, I can only encourage Nordic enterprises to explore and invest in renewable energy initiatives. Fostering both environmental responsibility and profitable ventures in this dynamic market.”
Terje’s insights offer foreign enterprises a valuable perspective on the evolving business landscape in Indonesia. As the country undergoes regulatory changes and embraces sustainable development, Nordic entrepreneurs are presented with unique opportunities.
By understanding the local nuances, collaborating with experienced professionals, and aligning with Indonesia’s goals, businesses can thrive in this dynamic and promising market. All with the help from Seven Stones.
