Medan, as well as the entire region of North Sumatra, abounds with attractive business opportunities. The thriving capital of North Sumatra, Medan, is a regional economic hub and commercial centre, rich in history and culture.
This largest city in Sumatra attracts foreigners who flock to Medan to invest not only due to its booming investment potential, but also its urban charm and famously diverse food scene.
This city has rapidly developed over the past decades and has become more than just a gateway in Indonesia. Thanks to its convenient location close to Singapore, Medan is a trading hub primarily known for its palm oil – with approximately 4 million acres of palm oil plantations on the island of North Sumatra.
So what are the latest business opportunities in Medan in 2019?
Business in Medan and North Sumatra: The Economy
North Sumatra is the fourth most populous province in Indonesia with more than 13.5 million inhabitants. The region is known for its plantation and is fertile and rich in commodities.
The agricultural sector is strong and is particularly famous for rubber, palm oil, cocoa, coffee, cloves, coconut, tobacco, cinnamon, and tea.
As a result of the location, Medan, as a part of North Sumatra, has benefited from the multibillion-dollar trade and agriculture substantially, especially from palm oil.
Palm oil can be found in almost every retail store in North Sumatra or even the entire Indonesia, and it’s strongly believed the palm oil sector has enhanced other business sectors in Medan such as trading, agriculture, and real estate.
Related article: Business Licensing within Agricultural Sector in Indonesia
Business in Medan: the Opportunities
There is a lot of business potential you can reap the benefits and gain abundant profits in Medan. With that being said, it requires you to study and research the market and the city’s economy, to guarantee your business success in the future.
1. Trading (Import/Export)
As one of the important cities in Indonesia, together with the entire country, Medan is considered among the emerging markets in trading.
Almost 60% of North Sumatra’s economy is supported by trade, agriculture, and processing industries. The increase of middle-class population in the country has led to the surge of internet penetration, improving the export and import performance in Medan over the years.
Besides, with the reform policy in Indonesia in recent years, doing trading business in Medan has never been easier – the process has been simplified, and the government has focused on the city’s infrastructure to close the gaps between areas in the surrounding areas.
2. Agriculture
Just like any other region in Indonesia, agriculture is an everlasting business in Medan and North Sumatra, recording a positive performance almost every year.
Besides rubber, palm oil, cocoa, coffee, cloves, coconut, tobacco, cinnamon, tea, hydroponic vegetable farming, agriculture business in Medan also includes people raising ducks, chicken, catfish, tilapia, etc.
These agricultural products will be continuously needed by the people in Medan and other countries to meet their daily needs. And with the growing population, the opportunities are endless.
3. Real Estate
Medan has doubled in size to almost 2.5 million people in just two decades. Houses, condominiums, amusement parks, and hotels have popped up everywhere in Medan to accommodate the influx of foreigners and local investors.
As Indonesia’s third-largest city, Medan is also a compulsory stopover city by tourists en route to other parts of North Sumatra such as Lake Toba.
Tourists have also become the target of this market as they reach several other parts of North Sumatra through Medan. On top of that, this industry will also accelerate other sectors such as tourism and the conservation industry.
Final Note
To get an in-depth understanding of business opportunities in Medan, contact Cekindo. We are ready to assist you with company and product registration in Indonesia, outsourcing accounting, tax, and payroll as well visa and work permit applications. Talk to our business advisors now.
