Southeast Asia · current conditions as of 24 September 2026 · fundamentals reviewed 16 October 2026
🇮🇩 Doing business in Indonesia
Southeast Asias largest economy with 270M consumer market.
Long-term risk: Medium
What makes up the long-term score
Highlights: 4th largest population · Digital economy boom · Complex regulatory environment
Key industries
Digital Economy & E-Commerce ↑ Rapid growth
Indonesia has the worlds 4th largest internet population. Tokopedia, Gojek and Traveloka are Southeast Asias largest tech firms.
Main investors: Softbank, US, China, Singapore
Natural Resources & Mining ↑ Strong growth
Indonesia is the worlds largest nickel producer and top coal exporter. EV battery supply chain investment is surging.
Main investors: China, Japan, South Korea, Australia
Manufacturing ↑ Growing
Indonesia is becoming a China plus one manufacturing destination for textiles, electronics and automotive components.
Main investors: Japan, China, South Korea, Singapore
Financial Services & Fintech ↑ Rapid growth
Indonesia has 180M+ unbanked adults. GoPay, OVO and Dana are driving rapid digital payment adoption.
Main investors: Singapore, China, US, Japan
Sector priorities
- Nickel & EV Battery Supply Chain: Indonesia controls 40% of global nickel reserves and is positioning as the centre of the global EV battery supply chain.
- Digital Economy: 210M internet users and growing middle class making Indonesia SEAs most compelling digital economy investment destination.
- Renewable Energy: Indonesia targeting 23% renewable energy by 2025 with geothermal, solar and hydro creating significant investment pipeline.
Talent & work permits
Indonesia has a young workforce of 140M with improving university output. Bahasa Indonesia is the business language with English in multinationals.
- Foreign workers: RPTKA work plan approval required before hiring expatriates. KITAS stay permit required. Process takes 4 to 8 weeks.
- Localisation: Manpower Law requires a ratio of Indonesian to foreign workers. Sponsor must develop a workforce development plan for each expatriate.
- Key consideration: Jakarta has a competitive senior talent market. Surabaya and other cities offer cost effective alternatives for back office functions.
Summarised from our dataset and not yet linked to sources. Verify with local counsel before acting.
How to enter: first four steps
Indonesia requires a PT PMA foreign investment company. BKPM is the investment coordination board managing foreign investment approvals.
- Establish PT PMA via OSS: Online Single Submission system is the single window for business licencing and investment approvals
- Check negative investment list: confirms which sectors are open to foreign investment and applicable ownership limits
- Meet minimum investment requirement: IDR 10 billion minimum investment applies to most PT PMA companies
- Register with DJP: Directorate General of Taxation for NPWP tax identification number and PKP VAT registration
Indicative cost: 10-person team
Professional-services team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.
First year by industry (10 people)
Regulatory watch
- Mar 2026 · Omnibus Law Implementation: New implementing regulations under Job Creation Law clarify foreign investment restrictions by sector.
- Mar 2026 · Downstream Processing Requirements: Indonesia expanded mineral downstream processing requirements to include additional critical minerals. Foreign investors must include local processing component.
Compare with Southeast Asia peers
Tap a market to see it side by side with Indonesia.
Common questions
Is Indonesia a good market to enter in 2026?
Indonesia has a long-term score of 6.0/10 on EmergingMarketIQ’s index (long-term risk: Medium) and scores 6.0/10 now, as of 24 September 2026. Southeast Asias largest economy with 270M consumer market. No direct exposure to the Iran conflict. Higher global oil prices (Brent above US$100 in late Sep 2026) and shipping disruption raise operating and logistics costs.
How much does it cost to set up a 10-person office in Indonesia?
Our cost model estimates about US$486k for the first year (≈US$38k per month run-rate plus ≈US$19k one-off setup) for a 10-person professional-services team; depending on industry the range is US$386k–US$545k. Indicative only.
What are the first steps to set up a company in Indonesia?
Establish PT PMA via OSS: Online Single Submission system is the single window for business licencing and investment approvals Then: Check negative investment list: confirms which sectors are open to foreign investment and applicable ownership limits Then: Meet minimum investment requirement: IDR 10 billion minimum investment applies to most PT PMA companies Then: Register with DJP: Directorate General of Taxation for NPWP tax identification number and PKP VAT registration
Source: EmergingMarketIQ country dataset. Current conditions and alerts updated 24 September 2026; GDP (World Bank 2025) and FX 24 September 2026; structural scores reviewed 16 October 2026. Rules, rates and conditions change, so verify with local counsel before acting. Not legal, tax or investment advice.