The picturesque island country of Indonesia is one of the best places on earth to start a business. Here in this article, we list down the most profitable small business ideas and opportunities one can start in Indonesia.
Indonesia has a mixed economy that favors the growth of small and medium-scale businesses. As a result, you have the option of growing your business idea in a variety of areas.
There are plenty of natural resources as well as agricultural products in Indonesia. This will help you to think of a business idea that can utilize these resources. The transport network of Indonesia is also well-developed which is very essential for any kind of business to grow well.
Now, let us focus on some business ideas that are suitable as well as profitable in Indonesia.
25 Business Ideas in Indonesia
1. Internet Service Provider
Internet usage is very high in Indonesia. As a result, there is a high demand for internet service providers. Avail of this opportunity and start your business as an internet service provider. Keep in mind that you have to give a good service of high-speed internet along with prompt troubleshooting. Your networking coupled with good marketing strategies will help you to grow your business well.
2. Hotels and Resorts
Indonesia is the tourists’ favorite place. For this reason, the business idea of setting up hotels and resorts is very profitable for you. There are many beautiful beaches as well as forests in the country where you can set up your hotel or resort. In the case of beach resorts, add the facilities of water sports to attract more customers.
Furthermore, keep your hotel or resort clean, hygienic, and well-decorated along with good food and cordial staff. These factors will add to the goodwill of your hotel. You have to invest in online and offline advertising and marketing of your hotel/resort.
3. Start a Travel and Tourism Business in Indonesia
Tourism is a dominant industry in Indonesia. Hence travel and tourism can be your lucrative business idea in this country. There are many business areas under travel and tourism. Firstly start your business as a tour operator making all the travel arrangements for the tourists from flight tickets, and accommodation to conducted tours, etc.
Secondly, you can be a travel consultant suggesting different tour packages in Indonesia. Thirdly, organize small trips and conduct tours for tourists as well as locals. Whichever area you opt for, marketing and advertisements will make your business more profitable.
4. Rice Production
Agriculture plays an important role in the Indonesian economy. Therefore the farming business is a lucrative business for you in this country. Among the farming businesses, rice farming is at the top of the list. If you know about farming, you can start a rice farming business. Furthermore, rice processing is also a good option for you. Rice is the staple food of the people of Indonesia, you have a good opportunity to grow your business.
5. Palm Oil Production
Palm oil has great demand in Indonesia. Along with that, Indonesian palm oil has great export potential. Hence, palm oil production is a profit-making business idea for you. It needs a big investment. However, considering the demand, you will be able to get high returns.
6. Open an IT Service Company in Indonesia
If you are trained in IT Indonesia is a good place for you to grow your business in IT service. As an IT service provider or IT consultant, you have to understand the client’s requirements, decide on the software to be used, train the manpower, protect the system against virus threats and upgrade the system as and when required. Along with these, troubleshooting is also your responsibility as an IT service provider.
7. Online Retail Marketing
Online retail marketing is the call of the day. With the tech-savvy population of Indonesia, you can successfully implement an online retail marketing business. You have to understand the demand of the people as well as focus on the timely delivery of products for your business to grow well.
8. Start a Food Truck Business in Indonesia
The food truck business is a great idea for you to earn profits with comparatively low investments. The food truck is a quick money-yielding business if you make good sales volume. Choose the local favorite dishes and make sure that the food is delicious. Take your food truck to busy areas or places of tourist attraction throughout the day. Once people start liking your food and recognize your food truck, your business will yield more profit.
9. Open a Restaurant
A Restaurant business will give you a good profit as restaurants or eating out is quite common in Indonesia. Apart from that, the large tourist traffic also needs good restaurants. Remember one thing; the décor along with the theme of your restaurant is as important as the quality of food. Be innovative in setting a different theme for your restaurant. Choose between local cuisine or foreign cuisine according to the location of your restaurant.
10. Dress designing and Boutique
If you are a trained or passionate designer then go for the business of dress designing or start your boutique. Keep accessories like bags, shoes, and costume jewelry in your boutique. Be creative in your designs. Try to make fusion clothes by mixing traditional Indonesian attires with Western outfits which are in vogue now. You have to do good online as well as offline marketing and publicity for your boutique to get more business.
11. Handicraft Store
Indonesia has a rich heritage of art and craft. Therefore you can earn a good income from a handicraft store. The tourists are also fond of handicraft items. Collect these items from local artisans and sell them through your shop. Keep a close eye on the décor of your shop. Furthermore, digital marketing and a website are essential to growing your business handicraft store.
12. Business Consultancy
If you have business insight and know the sources of funding, business consultancy is a very good business in Indonesia. As a business consultant, your responsibility will include showing the right direction, choosing the proper business idea preparing the project report, and helping in getting funds for aspiring entrepreneurs. You need good knowledge as well as effective networking to be successful in this business.
13. Social Media Marketing
Indonesians are ardent followers of social media. Therefore social media marketing is a very prospective business idea for you. In social media marketing, your job profile will include preparing marketing as well as ad materials for your clients which will make their business profile more popular and viewed on social media. You need your website along with a good social media following to avail yourself of the opportunity to become a successful social media marketing consultant.
14. Accounting Service
There are different kinds of business enterprises in Indonesia. As a result, accounting services are much sought after here. You can start your business of accounting service if you are a qualified accountant with experience in handling accounts. In the business of accounting services, you have to do the book-keeping, prepare balance sheets, income-expenditure statements, bank reconciliation, etc. Furthermore, you are supposed to give financial consultancy also.
15. Vet Clinic
A vet clinic is a good business idea because the number of pet owners is rising in Indonesia. If you are a qualified vet, you can start a clinic. Otherwise, you can start the vet clinic with paid vets. Add the services of pet boarding and selling pet food and toys for more profit. Cats are the most favorite pet of Indonesians. Find a good location and get your vet clinic good publicity along with a tie-up with a nearby vet hospital. That will add to your credentials which means more business.
16. Cattle rearing and meat processing
Indonesia is a meat-loving country. That is why it will be profitable for you to start a cattle-rearing and meat-processing business. Beef is a popular meat here. Therefore you can start a cow farm. This can serve a twin purpose. On one hand, you can sell meat or set up a meat processing unit. On the other hand, you can use cows for dairy products. Either way, you can earn a handsome profit.
17. Furniture Factory
Indonesian furniture has a good global market. You also can be a part of this market by setting up a furniture factory business. Wooden furniture is the most popular one. Find good carpenters and research creative as well as utility-based furniture ideas. The products of your furniture should cater to the local market also. Focus on effective marketing strategies for the growth of your furniture factory.
18. Insurance Consultancy
Insurance consultancy is a prospective business idea in Indonesia as the number of insurance-covered people is not very high here. Hence, you can set up your insurance consultancy business here. Many multinational insurance companies have set up their branches in Indonesia. This opens up more opportunities for you as an insurance consultant. You need good communication skills along with networking to succeed in this business.
19. Open a Coffee Shop in Indonesia
Indonesia produces one of the finest qualities of coffee. That is why the coffee shop business is a great business idea for you. Since Indonesia has large tourist traffic along with a busy business environment coffee shops have a great demand. A good location is very important for your coffee shop. Along with that, good quality coffee, as well as snacks and savories, will make your coffee shop more profitable.
20. Computer and Mobile Repairing
The widespread use of computers, as well as smartphones, needs good repair service. Therefore computer and mobile repairing is a good business in Indonesia provided you have the technical know-how of repairs. Start the business from home by visiting the client’s office or home for repair. After your business starts growing, rent a repair shop for your business.
21. Online Teaching
Online Teaching is a very profitable business idea for you if you are interested in teaching or have the necessary qualifications as well as training. It can be very profitable for you because you can teach different categories of students from school level to college and higher studies. Good digital publicity along with effective networking is necessary for the online teaching business.
22. Telemedicine
Telemedicine has been gaining popularity since the pandemic times. You can avail of this demand by setting up a telemedicine business wherein doctors’ consultations, follow-ups, and prescriptions will be available online by either video conferencing or by popular networks like Google Duo, Skype, or Zoom. The telemedicine business needs your networking with doctors and wide-scale online and offline publicity.
23. Start a Fishery Business in Indonesia
Indonesia ranks second after China in global fish production. Take note of these statistics and think of starting a fishery business. Tuna farming is the leading among fish farms. Hence you can start with tuna farming. You can sell your produce locally as well as export them. Knowledge of pisciculture along with the market trends will put you in a comfortable position in the fishery business.
24. Wedding Planner
Wedding planners are much in demand now. It is a good business idea for you if you have the management capacity and an aesthetic sense. Wedding planners have a wide scope for business starting from celebrities to the common people. Destination weddings, special themes for weddings, and customized décor are the things that you have to be very particular about as a wedding planner. Your website along with good publicity is necessary for your business as a wedding planner.
25. Vocational Training Center
The vocational training center has a high demand in Indonesia as the country needs more skilled workers in different sectors. This is a great opportunity for you to set up a vocational training center. Choose your niche in providing the training. Remember to include subjects that are beneficial for livelihood and employment. You can choose areas like agricultural products and processing, garment design and manufacture, handicrafts, IT, etc.
Frequently Asked Questions
Do I need to learn the local language to do business in Indonesia?
Indonesia is gradually adopting the use of English as a business language. If your business is based in big cities, you can conduct business without knowing the local language.
What are the best places to start a business in Indonesia?
The country has shown good business growth in recent years. The five best major places to start a business in Indonesia are the following:
- Jakarta
- Surabaya
- Bandung
- Bekasi
- Medan
Does starting a business in Indonesia take a long time?
The recent development and the business-friendly environment of Indonesia have made the process much faster. However, to set up a PT PMA (the most popular legal entity for foreigners), it takes approximately 2-6 months to launch a business.
What are the types of legal entities in Indonesia?
The three most popular types of legal entities in Indonesia are foreign-owned limited liability companies (PT PMA), local companies (PT), and representative offices (RO).
Can I get funding for my business in Indonesia?
There are different kinds of funding available for start-up businesses in Indonesia. Some of them are Seed Funding, Series A Funding, Series B Funding, etc.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.