Top potential cities in Indonesia to run a business

If you are an entrepreneur, you should consider starting or growing your business in Indonesia.

This nation is the fourth most populous country in the world with 270 million people and therefore has a large amount of human resources available for entrepreneurs. In addition, despite the fact that Bahasa Indonesia is the official language of Indonesia, business in major cities such as Jakarta is mostly conducted in English.

Indonesia is also one of the strongest economies in Southeast Asia. It never stops growing! Due to the rapid growth of the Indonesian economy, companies can take advantage of developing sectors. In addition, Indonesia is a member of major multinational organizations, such as ASEAN and the G20. Therefore, developing your business in Indonesia means that you have the opportunity to expand your ties with Indonesian trading partners.

There are many other benefits of doing business in Indonesia. That said, you can think about where the best places to start are. The following are the top potential cities in Indonesia to run your business:


the first potential city for business
Selamat Datang Monument, Central Jakarta

It is no wonder that the capital of Indonesia is the best place for business development. Jakarta is the heart of the economy in Indonesia. Most of the companies are headquartered in Jakarta. As the largest metropolitan area in Indonesia, even in Southeast Asia, Jakarta has become an attraction for global investors to put their money. A large population – around 10 million people – adequate infrastructure and a modern transport system contribute to this.


second rank
Denpasar, Bali

The island of the gods is always the most attractive place for domestic and foreign tourists. Every year, millions of tourists visit Bali to enjoy fascinating sights such as beaches and waterfalls. Therefore, this is an excellent opportunity for entrepreneurs to build a business in the hospitality sectors, such as restaurants, night clubs and hotels.


the second largest city
A view of the traffic near the Bambu Running Monument, Surabaya

As the second largest and most populous urban region in Indonesia, Surabaya has managed to attract many foreign investors for business. With approximately 2.8 million people, this city is considered rich in human resources. The city also has good supporting infrastructure for business, such as a good transport system to serve local and international destinations. There is great potential in Surabaya to start businesses in the manufacturing, agriculture and retail sectors.


good place to work
Asia Africa Street, Bandung

Bandung is known for developing high-end creative industries such as architecture, design, information technology, films and fashion. This is the best place to start a creative industry. In addition, Bandung is visited by many tourists every year to come to the shopping areas. This opens up opportunities for retail development. Bandung is also suitable for startup companies and is expected to become Indonesia’s Silicon Valley.


business center in Sumatra
Balai Kota Street, Medan

Medan has the largest economic scale outside of Java. Because of this, Medan became the business center of Sumatra. This is supported by its strategic position; it has a seaport and an international airport. The location is close to Singapore so it can facilitate all nearby entrepreneurs, especially from Malaysia and Singapore, to escalate their business network. Therefore, Medan is a very promising location for trading companies. This city also has fertile land that is suitable for agricultural activities.


business location in Sumatra
Ampera Bridge, Palembang

As the second largest city in Sumatra, Palembang has a reasonable potential for starting or developing a business. Palembang has a strategic location and many natural resources, especially coal. Therefore, this city is suitable for mining companies. It is also well known for being always included as a major venue for international events, such as the Asian Games, SEA Games and PON. Therefore, many domestic and foreign tourists are happy to come to observe the events. This is a good signal for catering and event management companies.


Singapore in Indonesia
Nagoya District, Batam

Batam is in the process of becoming “Singapore in Indonesia”. It is known for its steel and electronics industries, which are attractive to investors and entrepreneurs. This city is one of the developing cities in Indonesia. In addition, its strategic location, especially for international shipping routes, also facilitates trade routes.


business center in central Java
Lawang Sewu, Semarang

Semarang is the main market of the province and has adequate distribution channels for national and international markets. New businesses in the industrial sector, such as the food industry, textiles, trade, metal and machinery, hotels and the chemical industry, should thrive. Semarang has a population of two million and has a lower standard minimum wage than other major cities in Java.

a place to do business in yoga
Malioboro Street, Yogyakarta

Yogyakarta, popularly known as “Jogja“, provides an excellent opportunity for entrepreneurs who want to start a small business. One of the main reasons why Yogyakarta is a good place to run a business is that rents and other costs are cheaper. The standard minimum wage is considered low. Yogyakarta is also known as a tourist destination. Yogyakarta attracts many tourists, so it is a great place to start a business.

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