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 minute 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.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

It should take between 30 to 45 days.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.