foreign investment in semarang

Semarang: Why a Top Location to Start a Business in 2022

  • InCorp Editorial Team
  • 17 February 2020
  • 3 minute reading time

When it comes to foreign investment in Indonesia, the country was the second biggest to receive venture capital investment in Southeast Asia after Singapore, with a total amount of US$136 million in 2017.

The country itself has been labeled as “Asia’s next big Opportunity” supported by the fast-growing economy among G-20 countries.

Moreover, almost 70% of Indonesia’s population consists of people under 39 years of age with a labor force of around 122 million, leading it above America and the global average.

On top of it, the consumer spending rate in Indonesia is 6.4% which is faster than Brazil, Turkey, Malaysia, and Russia.

With all the characteristics, no wonder that foreign investment in Indonesia continues to grow more and more rapidly.

Jakarta may be one of the most predictable options for foreign investment as well as starting a new business. However, the manufactures or property may cost quite expensive, and you should consider another city such as Semarang.

Read on to learn more about Semarang and why it is an attractive destination for foreign investment in Indonesia.

Semarang, One of the Best Options Available for Foreign Investment in Indonesia

Located in the heart of Java island right next to Indonesia’s maritime track, Semarang could be the best option that can provide important access to other big cities such as Jakarta and Surabaya as well as to the international’s business market.

Semarang also offers a relatively lower cost of manufacturing rather than Jakarta and Bali, which should be one of the most considerable things before starting a business.

Aside from that, Semarang also offers you a relatively laid-back environment, something that Jakarta doesn’t offer because of its overcrowding environment and traffic jams, among others .

In addition, 31% of startups in Indonesia are based in Semarang, which opted for Semarang to be one of the best foreign investments to expand your businesses.

Back in late 2019, there were 11 companies already invested in multiple sectors in Semarang, including hospitality, construction, trading, property, and health. Those investments were conducted via Semarang Business Forum, and it proves that Semarang has a huge potential to be the next big city in Indonesia.

Starting a Business in Semarang

Behind its prospective potential, unfortunately starting a business in Semarang, or in other cities in Indonesia for that matter, might not be as easy as you think it is.

You have to consider several requirements, especially on company type, before establishing one. The most common type for foreign investors is PT PMA as it offers up to 100% foreign ownership and allows the employment of foreign workers.

Another thing to take into account is the market’s diversity which also adds up to another challenge, with its different races, tribes, religions, and values-all having their own business needs.

If you prefer not to rather than starting a whole new business with its complicated bureaucracy and laws involved, it is better to consider business incorporation by cooperating with a local partner and let them handle the market.

Business Incorporation in Semarang with Cekindo

Cekindo offers you a wide range of solutions and services to help your needs and achieve your goal strategically.

Professionals and experts are ready to help you research the Semarang market as well as assist you in company registration, securing business licenses, work permit applications, and more.

Let us know your business needs by filling in the form below. Our team will be in touch with you shortly.

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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Frequent Asked Questions

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.