Tired of your 9-to-5 job and hoping to start your own business? There are two ultimate goals of starting your business: one is to be your own boss and the other is to make a handsome profit out of it. You are in luck if you are in Indonesia or if you plan to become an entrepreneur start your startup business in the world’s largest archipelago. This is mainly because the lack of jobs in the country has prompted the government to promote entrepreneurship in numerous business opportunities. Learn more about the five most profitable industries in Indonesia.
But, here comes the problem. For many entrepreneurs, with thousands of business ideas, there can possibly be out there, it can be challenging to know which ideas are worth pursuing. Not only that you need to find one that is profitable, but also one that remains sustainable in the long run.
This is why we decided to put a list of the five most promising business opportunities every new entrepreneur in Indonesia should consider diving into. With the combination of resources and services from Cekindo, determination and hard work, your business venture as an entrepreneur in Indonesia can be less risky and truly rewarding.
Manufacturing has been contributing substantially towards the annual GDP growth in Indonesia. In 2016 of the Global Manufacturing Competitiveness Index, Indonesia was ranked one of the top 20 on the list. Indonesia is predicted to improve its ranking and thus, surpassing many ASEAN countries.
The Asian Economy Crisis in the 90s did make a negative impact on Indonesia’s economy. But in terms of foreign direct investment (FDI), manufacturing remains one of the most popular sectors in Indonesia.
Thousands of beautiful islands, stunning beaches, and diverse landscapes have attracted people from all over the world to Indonesia, which is why the leisure and tourism industry of Indonesia has also contributed greatly to the country’s GDP. Leisure and tourism bring in more foreign exchange earnings, and it is estimated that each visitor spends over US$1,100 on average.
Starting an international hotel business and other accommodation businesses in major cities in Indonesia are what foreign investors have been doing over the years, thanks to the huge opportunity in this sector. In addition, investors can also look into numerous under-explored places in Indonesia that are ready to become other popular destinations.
Indonesia’s substantial mineral and coal reserves have made the mining and energy sectors another investment powerhouse for foreign investors. These two sectors have not only created more jobs but have also boosted Indonesia’s GDP. With the constant development of infrastructure and demand for energy and minerals, the government of Indonesia has also looked into options to make investments in these sectors easier.
There are still many things Indonesia can improve on its infrastructure, especially when it comes to meeting the needs of the modern lifestyle. Thus, this need for improvement has created a condition that is beneficial for potential investors to invest and develop the infrastructure.
In addition to the investments pouring in from the private sector on infrastructure projects, the Indonesian government also plans to spend approximately IDR 404 trillion. Major projects that are of priority include highways, houses, shop lots, tolls, roads, bridges, airports, power plants, etc.
Thanks to the oceans and abundant natural resources, Indonesia’s maritime has become one of the most attractive sectors for investors. In addition to that, long-distance coal transport via sea is the cheapest option of transportation means, compared to other types of transportation means in Indonesia including road.
Maritime, shipping, and ports Industry is destined to grow, thanks to the 95,000 km coastline of Indonesia. Furthermore, the Indonesian government is ready to support projects such as ocean shipping, terminals, logistics, shipbuilding, etc.
Before starting your business venture in one of those industries, you are required to incorporate a company. There are several types of legal entities in Indonesia, and based on the Negative Investment List (NIL), the type of legal entity highly depends on the ownership allowance.
Cekindo can help you to determine your legal entity type in order for you to obtain the necessary licenses and certificates. Get in touch with us for more insights into your preferable sector as well as business setup process and requirements in Indonesia by filling in the form below. Or visit our offices in Jakarta, Bali, and Semarang. Be a successful entrepreneur, seize one of the business opportunities in Indonesia.