Indonesia is one of Southeast Asia’s most vibrant, dynamic, significant, and fastest-growing economies. It continues to evolve quickly as an emerging market, making it one to watch. With its fast-growing population, thriving entrepreneurial culture, and spirit to boot, Indonesia provides fertile ground for emerging ventures and established enterprises. Its population is set to reach approximately 279.8 million by mid-2024, underscoring the nation’s growing economy and growing middle class, which in turn is generating an increased demand for products and services.
With its bustling cityscapes in Jakarta or Surabaya, burgeoning rural frontiers, and trade-free zone in Batam, Indonesia offers a diverse range of untapped potential. It’s well-established infrastructure and vibrant business landscape are magnets for multinationals and regional enterprises, lured by the promise of new business opportunities and the growth trajectory that Indonesia offers.
As a business that has grown our presence in Indonesia over the last few years, we know first-hand what it takes to do business in Indonesia and why you would want to set up a business there. So here are four key reasons why you should consider Indonesia as a market to explore:
Population Dynamics
With a population nearing 280 million, Indonesia is not only the fourth-largest country in the world but also one of the youngest, with a median age of about 30 years. This demographic profile offers a dual advantage: a sizable, dynamic workforce and a massive consumer market hungry for innovative products and services.
A Vibrant Entrepreneurial and Innovative Landscape
Indonesia’s commitment to fostering entrepreneurship is evident through its supportive policies and initiatives, such as the ICC Centre of Entrepreneurship in Jakarta. These efforts are designed to nurture innovation and support small and medium-sized enterprises (SMEs) at various stages of their business journey. With one of the highest rates of entrepreneurship in Southeast Asia, Indonesia offers fertile ground for startups and businesses looking to tap into an entrepreneurial culture.
Jakarta as a Premier Business Hub
As the capital city, Jakarta serves as the epicenter of economic activity in Indonesia. Hosting the ASEAN Secretariat, it holds a pivotal position in international diplomacy and commerce. The city’s well-developed infrastructure, strategic location, and status as a regulatory and financial center attracts multinationals seeking a gateway to both the Indonesian and wider Southeast Asian markets. The presence of major banks, diverse business services, and a thriving startup ecosystem solidify Jakarta’s position as a primary gateway for trade and investment in the region.
Government Initiatives and Digital Growth
The Indonesian government’s proactive approach, including significant reforms like the Omnibus Law, has streamlined business processes, eased investment stipulations, and encouraged digital transformation. These reforms have paved the way for rapid growth in the digital economy, expected to reach unprecedented levels by 2025, offering vast opportunities in fintech, e-commerce, and beyond. In addition, Jakarta city has emerged as a significant startup hub in Southeast Asia opening doors for international businesses seeking to expand to Asia.
To summarise, Indonesia’s growing population, thriving entrepreneurial spirit, and Jakarta’s strategic business landscape present a hard-to-ignore opportunity for businesses serious about expanding to the region. The seamless interplay of these factors doesn’t just paint Indonesia as a market to explore; it casts the nation as a vibrant hub for growth and innovation in the heart of Southeast Asia.
Don’t miss the next Business The Heart Way podcast episode to hear more tips and tricks for expanding into Southeast Asia. Out soon.
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