bandung the right place to start a business in indonesia

Why Choose Bandung to Start a Business in Indonesia?

  • InCorp Editorial Team
  • 19 November 2018
  • 3 minutes reading time

Over the past several years, Bandung has transformed itself from a relatively unpopular and less disturbed place into one of the most attractive cities in Indonesia boasting of entrepreneurs and startups.

This capital city of West Java province is the centre for startups, and it is also known as one of the most creative cities in Indonesia.

Bandung is distinguished as an alluring destination offering foreign investments, technologically advanced measures and innovative expansions.

With a lot of advantages and internationality in this city come opportunities that are one-of-a-kind converging in one place.

Let’s take a look at why Bandung, a city of 2.4 million people, is the ideal place to start your next big venture.

Top-Notch Creative Industries

Way before startups sprouting out in this city brimming with opportunities, Bandung was already well-known for its innovative and creative fashion industry and has been appointed by UNESCO as part of its Creative Cities Network.

Known as Indonesia’s Silicon Valley, Bandung is also one of the active members in ‘1000 Digital Startup National Movement’. These are the factors that form the very foundation of Bandung’s innovative and creative scenes, providing tenacious founders and entrepreneurs new perspectives.

The strong presence of creative startups is supported by the population base from all walks of life including young people and technologically-savvy individuals.

In addition to that, the local government and authorities are equally supportive of the growth with a lot of Bandung’s universities offering courses in IT (Information Technology).

Prominent creative and IT communities include the game developer community GamedevBDG the game developer, FOWAB (Forum Web Anak Bandung), among many others.

Startup Communities and Ecosystem

There are the friendly ecosystem and numerous helpful communities in Bandung that have driven the city’s rise of startups — many companies and entrepreneurs regard the city as a comfortable starting ground for their ventures.

Communities that provide venues for the incubation of new startups–for both coaching and funding–include Startup Corner, Kolaborasi, Bandung Digital Valley, Startup Banding, and Indigo Creative Nation.

Other than funding and coaching, some communities even equipped with co-working space, virtual offices, cafeteria, sports facility, free internet access, 3D printing facilities, patent and legal issues assistance.

Tourism and Hospitality Boosts Startup Scene

The rapid growth in economy and infrastructure, as well as its spectacular nature, have made Bandung become one of the most alluring tourist destinations.

As the third largest populated city in West Java, Bandung offers vibrant, distinctive hospitality and tourism opportunities that promote foreign investments as well as the startup scene.

Thanks to its higher elevation compared to other regions in Indonesia, Bandung offers a cooler climate that is favoured by most foreigners and global travellers. All of them seem to enjoy the famous Bandung tours to tea plantation or a sulfur lake.

Besides, the striking Dutch colonial architecture, a wide range of delicacies, tonnes of fashion boutiques, and a new wave of hotels and villas, set to reinvent Bandung’s hospitality and tourism sector — transforming tourism experience with innovative solutions.

Company Registration in Bandung

Legal company registration is the first great weapon for you to join the booming startup ecosystem in Bandung.

As discussed in most of our articles, setting up a business in Indonesia can be complex if you are not familiar with the corporate law in the country. It is highly recommended to obtain local legal guidance about all registration formalities. For specific consultation for your business, please get in touch with Cekindo.

Verified by

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Frequently Asked Questions

    In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:

    • Business Identification Number (NIB)
    • Low-risk businesses needing only an NIB

    • Standard Certification
    • Standard Certification is necessary for medium-low and medium-high-risk businesses
    • Licenses/Permits

    High-risk businesses require licenses/permits
    Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).

    The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must.

    Limited liability company with 100% local/domestic direct investment

    The minimum number of shareholders to incorporate a PT is two

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