Indonesia is an archipelago country with abundant natural wealth. The rapidly increasing population growth in Indonesia has resulted in many productive ages rather than non-productive ones. Statistics Indonesia (BPS) estimates that Indonesia will get the impact of those productive ages in 2020-2035. Although Indonesia’s economic growth had weakened due to COVID-19, in the third quarter of 2021, economic growth showed positive results namely 3.51% (YoY). All of them create many lucrative business opportunities in Indonesia.
Those business opportunities in Indonesia are also supported by the Indonesian government policies that make it easier to build businesses and invest in Indonesia. The Indonesian government also provides incentives for investors both fiscal and non-fiscal. The government is also committed to continuing to make improvements. Therefore, building a business and investing in Indonesia has become easier, more efficient, and transparent.
Here are the top profitable business opportunities in Indonesia:
Based on We are Social Indonesian Digital Report 2021, Indonesia is a country with the highest e-commerce sales in the world. As many as 87.1% of Indonesian internet users aged 16 to 64 years make online transactions with an Average Revenue per User (ARPU) of US$ 219. Meanwhile, the Average Revenue per User (ARPU) in 2021 is expected to US$ 248.33 with projected revenue reaching US$ 39,398. Therefore, e-commerce is one of the most profitable business opportunities in Indonesia.
2. Travel Industry
As the largest archipelago in Southeast Asia, Indonesia is composed of more than 17,000 islands, 700 languages and dialects, and various kinds of cultures. Tourism is one of the important sectors for Indonesian state income. Foreign tourist visits to Indonesia tend to increase from year to year. In 2019, more than 16 million foreign tourists visited Indonesia.
Hence, the tourism industry opens up many business opportunities in Indonesia. Moreover, the government issued a visa exemption policy for foreign tourists from 169 countries. It will attract more and more foreigners to visit Indonesia.
3. Manufacturing Industry
As the 10th largest manufacturing country in the world, the manufacturing industry in Indonesia has become popular and promising business opportunities. This sector has employed more than 20% of the working age population in Indonesia, approximately 25 million workers. Some of the superior products exported by Indonesia are mineral fuels, mineral oils and products of their distillation, mineral waxes, bituminous substances, animal or vegetable fats, and oils.
It seems that this profitable industry will develop much more rapidly because the government has issued policies that facilitate business licensing and investment in Indonesia. The government also provides certain incentives for investors.
President Joko Widodo’s cabinet has focused on developing infrastructure since 2018. One that has great potential is renewable energy. The Indonesian government has set out goals that are achieving 23% renewable energy use by 2025 and 31% renewable energy use by 2050.
Those goals are very achievable as Indonesia has great potential in developing renewable energy. Indonesia has so many seas that can be used as offshore wind power plants and the construction of hydroelectric power plants. Other than that, Indonesia has plentiful resources for wind, solar, and bio-energy development like biomass/bio-residues.
As a tropical country, Indonesia has an abundant source of sunlight throughout the year. It benefits Indonesia to be able to develop photovoltaic and solar thermal power. Concerning generating power, these energy sources can support heating, cooling, and transportation applications. All of these potentials offer great business opportunities in Indonesia.
With all of these great business opportunities in Indonesia and all of the government’s new policies that make it easier for business and investing licensing, investing in Indonesia is the right decision.