Indonesia is a country with a diverse economy. Its considerable economic growth has been driven by contributions made by businesses in many different industries. However, this does not change the fact that certain industries make larger and more significant contributions to the economy of Indonesia than do others. For this reason, businesses in these industries are more conducive to profit than others. Some other industries in Indonesia have shown tremendous growth. Businesses in sectors which have registered significant degrees of growth and expansion are therefore also excellent choices for anyone planning to start a business in Indonesia. All the business fields to be mentioned in this article are conducive to profit, and all prospective business owners in Indonesia should seriously consider these business fields when they decide to start a business in Indonesia.
You might have an interest in starting a business in one of the business fields to be mentioned, or perhaps in any other business field. This is where we at Paul Hype Page & Co can come in. We will help you with the setup of your new Indonesia-based company. Our incorporation experts will also contact all government authorities on your behalf so as to expedite the process of incorporation.
The revenue generated by tourism has always served as a mainstay of Indonesia’s economic development. Indonesia is ranked 20th in the world with regard to total revenue generated by tourism. Its tourism sector is also ranked ninth in the world and third in Asia with regard to pace of growth. The cities of Denpasar, Jakarta, and Batam are three of the 10 cities in the world with the fastest-increasing rates of tourist arrivals. In 2018, almost 16 million tourists from various countries around the world entered Indonesia. The five countries which were the primary contributors to this total were Malaysia, China, Singapore, Timor Leste, and Australia.
Indonesia’s Ministry of Tourism oversees tourism in the country. It has conducted various tourism campaigns intended to draw tourists from all over the world to Indonesia. It has prioritized Indonesia’s tropical beaches and rich cultural heritage in its attempts to do so.
There are various ways in which a prospective business owner could take advantage of Indonesia’s booming tourism industry. Some might choose to set up a hotel or a backpackers’ hostel in an attempt to provide suitable accommodation to those traveling in Indonesia. Others might prefer to start a travel agency which provides travel packages for those planning to travel to any of Indonesia’s various locations. Still others may opt to start a vehicle rental company; although this is not directly related to tourism, there is a significant chance that such a company will often be frequented by tourists.
The mining industry has always been one of Indonesia’s most economically robust. This is due to the fact that Indonesia is endowed with enormous reserves of coal and other minerals. Indonesia’s primary mined product is coal. Ever since the country’s coal mines were reopened in 1993, Indonesia has consistently ranked among the world’s leading producers of coal. Bauxite, silver, and tin are also important products which are mined in Indonesia. Other products in this sector of which the Indonesian government is attempting to increase the country’s production so as to facilitate exportation to other countries include gold, copper, and nickel.
The Indonesian government understands how important the mining industry is to the country and its economy. For this reason, it has provided several benefits to those who own a business in the mining industry as well as those who have chosen to invest in it. Investors in Indonesia’s mining sector are allowed to claim specific tax incentives. The government has also been working on the process of simplifying the methods required to obtain all relevant licenses and permits which are related to this important sector.
Due to the advantages provided by the government, opportunities for business activity abound within the mining industry of Indonesia. Some business owners might opt to start a business which sells equipment which is frequently used in mining. The sheer size of Indonesia’s mining industry will ensure that such a business will always have a dedicated customer base. Another viable option for a business owner in this sector is that of starting a business which performs repairs of equipment used by miners. Others who plan to start a business related to Indonesia’s mining industry could set up a trading company with an emphasis on mined products. This would also be a suitable and lucrative option because Indonesia exports many such products all over the world; these exports provide much revenue for the country.
Indonesia’s construction sector is also one of the primary contributors to the country’s total revenue. It is the third-most valuable industrial sector in Indonesia when ranked by contribution to the economic growth of the country. The construction industry of Indonesia is expected to grow by 6.6% every year through 2022. Most of this growth is expected to be derived from the construction of civil construction and building construction projects. Indonesia’s construction market is the fastest-growing in Asia. This is the leading reason why locals and foreigners alike have become ever more interested in starting a business within the construction industry in Indonesia; because of this rapid rate of growth, much profit will be likely to follow.
The government of Indonesia understands how infrastructure projects contribute to the development and economic well-being of the country. For this reason, it has chosen to finance certain infrastructure projects which have been deemed to be of extreme importance due to their perceived present and future economic value. Among these projects to be constructed are two toll roads, an express train, a railway, 10 airports, and three ports.
One of the ways by which a new business owner could become involved with the construction industry in Indonesia is by starting a company which specializes in cement. Construction projects require the use of large quantities of cement. Therefore, sellers of high-quality cement will find that their products are frequently purchased and deliver much income to the company and its owner. Some might prefer to start a business involved in the provision of electricity. The many buildings and facilities to be constructed will need a power source. Therefore, such businesses will find that they will have many customers due to the many construction projects being undertaken in the country. Delivery services will also be lucrative ventures, both during the process of construction as well as after the projects have been completed. During the construction process, many materials required for construction will be needed to build what has been planned. After the construction has been completed, the infrastructure such as roads and railways could be used to deliver products. Therefore, the services of such businesses will be in demand, especially those related to the construction industry.
The telecommunications industry of Indonesia has been experiencing a surge in demand as well as profit levels. The number of smartphone users in Indonesia continues to grow. By the end of 2019, there are expected to be approximately 92 million smartphone users in Indonesia. This figure means that it ranks third in market size among all Asia-Pacific countries, only behind India and China. Internet connection speeds have also been improving. The fastest Internet connection speeds in Indonesia can be found in Java and Bali; however, the same cannot be said of other parts of Indonesia. However, this fact means that there is also an opportunity present for those planning to start a telecommunications company in Indonesia.
Although the Indonesian government has not provided any direct benefits or incentives related to the country’s telecommunications industry and the businesses in it, it has nevertheless initiated the Palapa Ring project. This project is intended to provide high-speed broadband Internet connection to areas of the country which would otherwise not have access to it. It is expected to primarily serve the Maluku Islands and Kalimantan.
Those who own a business that sells electronics will find themselves among the business owners who benefit most from the increasing fortunes of the telecommunications industry. Such business owners may take advantage of the heightened demand for electronic products which will be driven by the improvement in Internet connections and the increasing size of Indonesia’s smartphone market. Another business venture related to telecommunications which would also be a viable option is that of a business specializing in the repair of electronics. The more people own smartphones and computers, the more people will need repairs for such objects; an electronic repair business could meet this heightened demand. One other unconventional but possible option for those planning to set up a business in this sector is that of a cybercafé. Many people are interested in seeking out a spot where they can take a break from their daily life and stop to browse the Internet or play video games. Cybercafés would provide such an opportunity for these people.
The industries that have been mentioned in this article are all truly pivotal to the success of the Indonesian economy. There are many benefits, whether monetary or otherwise, available to anyone who starts a business in any of these business fields. Therefore, it would be a wise move for anyone who plans to start a business in Indonesia to seriously consider doing so in one of these business fields, for they are the ones which are the most conducive to making a considerable profit.
Paul Hype Page & Co – Acra service provider and Asean Chartered Accountant.
Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia
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