How to Open a Company in Indonesia’s Priority Cities

Opening a Company in Indonesia’s 50 Priority Cities: A New Wave of Investment Potential

  • InCorp Editorial Team
  • 3 November 2025
  • 6 minutes reading time

If you’re looking to open a company in Indonesia, there has never been a more opportune moment. With the government launching an initiative to develop 50 priority cities nationwide, investors now have access to emerging urban hubs designed for sustainable growth, innovative infrastructure, and decentralized economic development. 

This push toward regional balance presents a timely opportunity, but also demands careful navigation of company formation, registration requirements, and local compliance. Working with experienced corporate service firms can ease the process, ensuring your business is structured correctly and aligned with regional policies. 

This guide will explore these 50 new investment destinations and outline what you must prepare to enter these dynamic markets successfully. 

Inside Indonesia’s 50 New Priority Cities for Investment 

Indonesia is entering a new phase of regional development. According to CNBC, the Ministry of Public Works and Housing has identified 50 priority cities to be developed between 2025 and 2029, as part of a national push toward decentralized growth. For anyone planning to open a company in Indonesia, this signals a significant shift, where investment opportunities are no longer limited to Jakarta or Java alone. 

Metropolitan Areas 

The 10 largest urban hubs remain vital economic engines and will see expanded infrastructure and planning: 

  • Medan 
  • Palembang 
  • Jakarta 
  • Bandung 
  • Semarang 
  • Surabaya 
  • Denpasar 
  • Banjarmasin 
  • Makassar 
  • Manado 

Proposed New Metropolitan Cities 

New city clusters are being promoted to metropolitan status, reflecting rapid growth and future importance: 

  • Pekanbaru 
  • Yogyakarta 
  • Surakarta 
  • Malang 

Industrial Cities 

Ideal for manufacturers and logistics companies looking to capitalize on existing and planned industrial zones: 

  • Cilegon
  • Batang
  • Gresik 
  • Morowali 
  • Konawe 
  • Luwu Timur 
  • Halmahera Tengah (Weda) 
  • Mempawah (Kijing) 
  • Bitung
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Tourism Cities 

These cities have been identified for their eco‑tourism and cultural potential, ideal for businesses in hospitality, transport, and sustainable tourism: 

  • Toba (Balige) 
  • Bintan 
  • Tanjung Pinang 
  • Buleleng (Singaraja) 
  • Mataram 
  • Manggarai Barat (Labuan Bajo) 
  • Bukittinggi 
  • Belitung 
  • Gorontalo 
  • Ambon 

Trade Cities 

Strong hubs for domestic and regional trade, these cities are well-positioned for retail, logistics, and export‑oriented businesses: 

  • Bandar Lampung 
  • Samarinda 
  • Balikpapan 
  • Sorong 
  • Bengkulu 
  • Surakarta 
  • Jayapura 
  • Manado 

Education Cities 

Known for their universities and research centers, these are ideal for tech, education startups, and innovation-driven businesses: 

  • Depok 
  • Sumedang (Jatinagor) 
  • Salatiga 
  • Malang 
  • Banyumas (Purwokerto) 

Special Small Cities 

Unique, culturally rich, or strategically located towns, small in size, big in potential for niche ventures: 

  • Tana Toraja 
  • Maluku Tengah (Banda Neira) 
  • Pulau Morotai 
  • Pegunungan Arfak 

Each city has a clear strategic focus, making it easier for businesses to align their investments with the correct location. 

What Investors Should Prepare Before Entering Indonesia’s New Priority Cities 

What Investors Should Prepare Before Entering Indonesia's New Priority Cities

If you plan to open a company in Indonesia, especially in one of the 50 new priority cities, there are three key steps to get right. These will help you launch smoothly and stay compliant. 

Choose the Right Business Type and Activity 

  • Foreigners must set up a PT PMA (foreign-owned company) to operate legally. 
  • Check if your business is allowed under the Positive Investment List. 
  • Select the correct KBLI code (business classification). 

Meet Capital and Licensing Requirements 

  • You need a minimum investment plan of IDR 10 billion, and IDR 2.5 billion in paid-up capital. 
  • Prepare a Deed of Establishment through a notary and legalize it with the government. 
  • Register your company through the OSS (Online Single Submission) system to get your NIB (Business ID Number) and main licenses. 

Register Locally and Stay Compliant 

  • Get a valid business address in your chosen city; it’s required for registration. 
  • Register for a tax number (NPWP) and sign up employees for BPJS (social security). 
  • Submit regular investment reports through the LKPM system. 
  • Be aware of local rules, especially in smaller or developing cities.

Why You Need Experts to Succeed in Indonesia’s Priority Cities 

Setting up in one of Indonesia’s 50 priority cities can be complex. Working with expert consultants can make the process faster, safer, and more efficient. These are: 

Faster Company Setup 

Consultants play a vital role in choosing the correct entity for your business and handling the necessary legal paperwork. They will guide you through registering your business via the OSS, ensuring you understand and comply with all local rules and regulations, especially in smaller cities where permit requirements vary. 

Stay Compliant and Avoid Risks 

Consultants keep your business compliant with Indonesian laws, including tax, BPJS, and LKPM reporting. They reduce risks by helping you avoid delays in licensing or legal issues with zoning and permits. 

Ongoing Support with BPO Services 

Many consultants also offer Business Process Outsourcing (BPO) services. These services cover essential administrative tasks such as payroll, HR, and accounting, allowing you to focus on growing your business. By managing these tasks and ensuring local compliance, BPO services can significantly reduce the administrative burden on business owners.

Building Continuity Through Payroll Compliance

Mailchimp Payroll Outsourcing

Start Strong in Indonesia’s Priority Cities with InCorp 

Expanding into one of Indonesia’s 50 priority cities involves navigating unfamiliar systems, regulations, and local nuances. InCorp Indonesia (an Ascentium Company) can help you reduce guesswork and ensure your company is structured correctly and compliant from day one. 

Here are the key services that can make your market entry smoother and more strategic: 

  • Business Setup: Company incorporation to registration with the Indonesian government. 
  • BPO Solutions: Payroll, HR, accounting, and compliance support tailored to your business stage. 

Fill out the form below to make your entry seamless in Indonesia’s priority cities.

Frequently Asked Questions

Why is now a good time to open a company in Indonesia?

Indonesia is developing 50 new priority cities from 2025 to 2029, offering fresh investment opportunities outside Jakarta. These cities are focused on sustainable growth, innovation, and regional balance.

What are the best cities to invest in outside Jakarta?

The government has identified key cities based on economic focus—such as industrial (Gresik, Batang), tourism (Labuan Bajo, Toba), education (Depok, Salatiga), and trade (Balikpapan, Samarinda)—giving you more tailored options.

What are the basic requirements for setting up a company in these cities?

Foreign investors must establish a PT PMA, plan a minimum investment of IDR 10 billion with IDR 2.5 billion paid-up capital, register the company through OSS, and obtain the necessary business licenses, NPWP, and BPJS. They must also comply with local LKPM reporting requirements.

Why should investors work with a consultant?

Corporate consultants simplify the setup process, handle legal documentation, and ensure compliance with national and local regulations. They also provide ongoing support, such as payroll, HR, and accounting, through business process outsourcing services, allowing investors to focus on operations.

Are business regulations the same in every city?

No, each city may have local policies and procedures, especially in smaller or newly developed areas. Understanding local rules or partnering with an experienced consultant is crucial to avoiding delays and ensuring a smooth business establishment.

Verified by

Ales Cina

Consulting Manager at InCorp Indonesia

Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in... Read more

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