Every business owner in Indonesia would like to know more about the ways in which they are most likely to obtain business success. Although there are many routes to the success of a business in Indonesia, all have certain commonalities which will be discussed in this article.

Success of an Indonesian Business


Everyone who chooses to start a business in Indonesia believes that doing so will set them on the path towards corporate success. They might assume that once their company has been officially incorporated, the success of their business would immediately follow. However, those who make this assumption are incorrect. Just as is the case anywhere else in the world, there are certain actions which could and should be taken by any business owner in Indonesia in order to ensure the success of the business which they would run. Certain actions would set the company up for failure, but others would set it up for success. Therefore, it is important for every business owner in Indonesia to understand which actions would cause their business to achieve the best possible results and operate at its optimal level.

Entering an Appropriate Business Field

In every country, certain business fields are more commercially viable options than others. These fields have more opportunities for investment, are primed for much future growth, are very open to the entry of new businesses, may be ready to be enhanced through the innovations of a new business, or a combination of more than one of the preceding factors. Indonesia is no different in this regard. Although the country’s economy is diverse and readily accepts contributions made by businesses in any field, certain sectors make more significant contributions than others. One such field is the shipping and maritime industry. The shipping industry is important to Indonesia because the country is comprised of thousands of islands. Therefore, the transportation of goods and other products is often done by sea. This is because the cost of transporting such goods by sea is much lower than the cost of transporting those same goods by land or air. Furthermore, the government of Indonesia provides much support to all who choose to start a business in the shipping and maritime industry. It provides funding for projects such as ocean shipping, the construction of ports and terminals, and shipbuilding. For these reasons, the market for shipping-related activities in Indonesia is always open to further entry of new businesses as well as additional investment. The country benefits and will continue to benefit from the business activities of this crucial industry.

Manufacturing is another business field which is a viable option for those who plan to start a business in Indonesia. It makes a larger contribution to the growth of Indonesia’s gross domestic product (GDP) than does any other sector. For almost 50 years, manufacturing has served as one of the key pillars of Indonesia’s impressive economic growth rates. The revenue which it has brought to the country has in turn been used to invest in mechanisms which further boost the economic development of Indonesia. The Indonesian government also recognizes this fact and therefore has provided support for this sector with regard to licenses, incentives, tax exemptions, and permits. Therefore, those who plan to start a business in Indonesia should consider doing so in the manufacturing sector.

The mining and energy industry is another major contributor to the economic well-being and GDP growth of Indonesia. Indonesia is replete with reserves of minerals and coal. It is the world’s fifth-largest producer of coal. In 2019, it is expected to produce 461 million tons of coal. Energy businesses are also set to be in good shape because the demand for electricity across Indonesia is expected to increase by approximately 8.3% every year until 2026. The government has also relaxed regulations imposed on businesses in this sector. It also has provided mining and energy businesses with certain tax incentives and has also simplified the process of obtaining certain licenses and permits. Thus, the mining and energy industry is also an excellent option for anyone who plans to start a business in Indonesia.

Each of the business fields which have been mentioned benefit from various tax incentives. If you would like to find out more ways by which your own corporate tax burden could be eased, we at Paul Hype Page & Co can be of assistance to you. Our tax specialists will see to it that your tax bill is reduced to as low a level as possible while still remaining compliant with the tax laws of Indonesia.