Business Expansion To Indonesia


A less-known fact about Indonesia is that its population is rich with creative minds. Aside from the country’s talented personnel, Indonesia has become a profitable country to invest in with its new foreign investment regulations. In collaboration with DesignSingapore, one of our business consultants, Darlenne Cindy, discusses the prominent creative industries in Indonesia, and options an investor can consider to expand their design business to Indonesia. 

An overview of the creative industries in Indonesia

In terms of Indonesia’s creative industries, subsectors such as culinary, fashion and handicrafts are the most profitable creative sub-sectors. To start a design business, Jakarta is suitable for fashion design, architecture, and interior design; Central Java is suitable for furniture and handicrafts; and Bandung is the center of the design, textiles, and culinary.

Company incorporation in Indonesia

Incorporated companies such as foreign-owned companies (PT PMA) or a representative office for a foreign company can both be used when expanding a design business to Indonesia. Each option may have its limitations depending on the sector’s openness to foreign investment for a PT PMA, and the unableness to generate sales in a representative office.

Practical ways to enter the Indonesian market

Practical alternatives to entering the Indonesian design market are initiating joint ventures with a local company or cooperating with a local distributor. In addition, hiring a sales executive in Indonesia can assist in discovering new projects and partnership opportunities in the country.