Southeast Asia · updated 24 September 2026
🇮🇩 Doing business in Indonesia
Southeast Asias largest economy with 270M consumer market.
Structural scores
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.
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 mix (1 senior, 5 professional, 2 admin, 2 support), Grade-A office, registration, legal, audit and tax compliance. Model estimate, not a quote. Model your own team size and industry →
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
Common questions
Is Indonesia a good market to enter in 2026?
Indonesia scores 6/10 on EmergingMarketIQ’s structural index (risk: Medium). Southeast Asias largest economy with 270M consumer market. Current-conditions score: 6/10 (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.) — updated 24 September 2026.
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. 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, alerts, GDP (World Bank 2025) and FX updated 24 September 2026; structural scores reviewed 24 September 2026. Rules, rates and conditions change — verify with local counsel before acting. Not legal, tax or investment advice.