Home Blog 2024 Economic Outlook for Indonesia Business Licenses | Company Registration | Indonesia 2024 Economic Outlook for Indonesia InCorp Editorial Team 4 June 2025 6 minutes reading time Table of Contents What is the Outlook for Indonesia in 2024? What are the Economic Challenges in 2024? Opportunities to Capitalize on Indonesia's Economy in 2024 Policy Initiatives to Support Economic Growth Unlock Business Growth in 2024 with InCorp Indonesia Indonesia’s economic outlook for 2024 looks positive. The government is committed to fostering a robust business environment, and key indicators and strategic initiatives are expected to drive economic development. What is the Outlook for Indonesia in 2024? The economic outlook for 2024 is anticipated to unfold in two distinct scenarios—initial challenges followed by a more favorable landscape towards the end. In Indonesia, economic acceleration is expected to materialize as the government’s transitional processes conclude by the year-end. According to Bank Indonesia’s projections, Indonesia’s GDP growth is estimated to range between 4.7% and 5.5% in 2024, with inflation hovering around 2.5%±1%. Furthermore, the e-commerce sector is poised to maintain its growth trajectory, with a projected increase of 2.8% to reach IDR 487 trillion in 2024 and 3.3% to reach IDR 503 trillion in 2025. Secure, seamless, and reliable payment systems underpin the robust performance of digital economic and financial transactions. The value of digital banking transactions is anticipated to grow by 23.2% in 2024, reaching IDR 71,584 trillion, and by 18.8% in 2025, corresponding to IDR 85,044 trillion. READ MORE:2024 Projections for the Indonesian Food and Beverage IndustryHow Trade in Indonesia Benefits the EconomyUnderstanding Indonesia’s Role in the ASEAN Economy What are the Economic Challenges in 2024? Following the post-Covid-19 pandemic era, there is a trend of global and national economic recovery. However, Indonesia’s economy in 2024 is suspected to face uncertainty influenced by several external and internal factors. Several external factors are contributing to Indonesia’s economic uncertainty. These factors include events such as conflicts between Israel and Palestine and Russia and Ukraine, along with the threat of climate change that could disrupt food supply chains. Furthermore, inflation, interest rate hikes, and economic slowdowns in China, Europe, and the United States are also expected to impact global economic growth. At the domestic level, Indonesia may face several anticipated challenges in its macroeconomic landscape in 2024. These challenges include export slowdowns, domestic interest rate hikes, depreciation of the rupiah exchange rate, and the upcoming general election. Opportunities to Capitalize on Indonesia’s Economy in 2024 Despite the challenges, there are plentiful opportunities for businesses to capitalize in 2024; those are: 1. Environmental, Social, and Governance (ESG) In 2024, there is a chance to enhance ESG (Environmental, Social, and Governance) initiatives. A good ESG rating can help companies secure more extensive funding at lower interest rates, resulting in higher brand recognition and keeping employees and consumers loyal. 2. Renewable Energy Sources and Waste Management Indonesia has great potential for renewable energy sources such as geothermal, hydro, and solar. A projected annual investment of USD 10 billion in energy efficiency by 2030 indicates a shift from traditional and polluting electricity generation methods such as coal. Additionally, Indonesia is a significant plastic waste producer, resulting in water pollution concerns. However, startups and initiatives are working towards addressing these issues through innovative solutions. 3. Tourism Indonesia’s Minister of Tourism and Creative Economy, Sandiaga Uno, is optimistic about the country’s tourism sector in the upcoming year. He predicts that the industry will perform better than in 2023, although it still has a long way to go to return to pre-COVID-19 levels in 2019. In 2023, Indonesia saw about 11 million foreign tourist visits, which exceeded the target of 8.5 million. The government’s goal for 2024 is to have 14 million foreign tourists visiting the country. 4. Financial Technology and E-Commerce Indonesia’s financial technology (fintech) sector is well-funded, with about half of 2020’s venture capital investments in payment startups. With over 300 fintech startups, the growth potential is substantial, especially given the popularity of cash transactions and that only half of the population has a financial institution account. 5. Transportation Indonesia comprises over 17,000 islands, which poses logistical issues for businesses looking to optimize transportation expenses. However, this also creates opportunities for companies to find ways to cut costs. The demand for electric vehicles is projected to increase significantly, with an estimated 21 million EVs on the road by 2025. The Indonesian government is committed to supporting this sector with a proposed USD 2 billion EV fund to cater to the country’s various transportation needs. 6. Education Technology Despite having numerous students and educational institutions, Indonesia has a significant gap in upper secondary qualifications, with 42% of 25- to 34-year-olds falling short. This creates an opportunity in education technology, with estimates suggesting that 113 million Indonesians will need professional retraining by 2030. Entrepreneurs can explore comprehensive courses, online tutoring, or self-learning options to meet this growing demand. 7. Halal Industry Indonesia is a country where most of the population is Muslim. Due to this, there is a considerable demand for halal products and services. Indonesia has established itself as a significant market for halal goods, and its expertise in areas such as Islamic banking, fintech, and halal goods manufacturing puts it in a favorable position to become a leader in the halal industry. 8. Healthcare Universal healthcare was implemented in Indonesia in 2014, making quality healthcare a top priority for the nation. This program covers around 86% of the population, providing greater access to medical care and creating opportunities for growth in the medical industry. However, persistent challenges remain, such as a shortage of healthcare providers and unequal care distribution. The COVID-19 pandemic has led to the adoption of telemedicine, which is especially vital for reaching remote areas. This presents investment potential for digital healthcare. Policy Initiatives to Support Economic Growth Several policy reforms aim to address structural issues in Indonesia’s economy and support economic growth: 1. Infrastructure Development The first focuses on extensive infrastructure development, enhancing connectivity mobility, and reducing transportation costs to stimulate new growth areas. 2. Institutional and Regulatory Reforms Equally crucial is the second step, which involves reforms in institutions, regulations, and legal frameworks. These reforms will provide clarity for economic activities and foster future investments. Notable reforms include the Job Creation Law to promote investment and streamline policies. Moreover, the omnibus law on the financial sector aims to strengthen institutional authority, build public trust, and enhance financial literacy and innovation. 3. Human Resources Enhancement Another vital reform emphasizes building and improving the quality and productivity of human resources through increased budgets for education and infrastructure in the coming years. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Updates Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Unlock Business Growth in 2024 with InCorp Indonesia Despite the ongoing global economic challenges, Indonesia is an attractive destination for businesses looking for sustainable growth and expansion. The country’s domestic consumption is strong, the digital economy is growing, and there is a strategic focus on attracting foreign investment. However, navigating the dynamic local landscape requires careful planning and a thorough understanding of regulations. InCorp Indonesia (an Ascentium Company) is a trusted corporate solutions provider that offers comprehensive services to help establish your business in Indonesia. These services include company registration, business licensing, and product registration. Consult with our expert by filling out the form below. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions Is there limited responsibility for shareholders in a PMA company? In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors. Will the government check the minimum paid-up capital for doing business in Indonesia? The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must. What is a CV? CV (Commanditaire Vennootschap) is a proprietary business entity that houses several individuals to run a business. How do investors choose a holding jurisdiction for a PMA firm in Indonesia? Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia. Get in touch with us. Lead Form Subscribe Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business 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. More on Business Licenses How to Establish an Indonesian Association in the Form of a Legal Entity Read more Trademark Registration in Indonesia: How to Do It Correctly Read more The Potential of Indonesia’s Video on Demand Industry Read more