The Pros and Cons of Running a Business in Indonesia

Startups are growing substantially in Indonesia. More and more entrepreneurs are taking the opportunities available in the country. As such, many are also wondering why and looking for the right reasons in incorporating Indonesia. Are you one of the many who are researching Indonesia’s regulations, market, and investment ecosystem? This article is an overview of the advantages and challenges of doing business in Indonesia.


There are various reasons why starting a business in Indonesia is ideal. One advantage is its economy that can support even fresh startups. More multinational companies are also expanding here that increases diversity and competition in the market. The state projects the number of startups in Indonesia will rise more in the coming years.

Further, Indonesians are becoming more internet-savvy which opens to more opportunities for entrepreneurs to tap the digital industries. About 53.7% of Indonesian citizens use the internet, which is a great potential market for online and electronic businesses.

Lastly, the Indonesian government is committed to supporting business, whether local or foreign. More particularly, the state is providing better funding for small and medium enterprises. In addition to the funding, the government is also offering support by providing avenues for community building.


While there are several pros to doing business in Indonesia, there are also a few challenges business owners will have to face. For one, it is noted that most of the population is still unbanked. This may be a problem for businesses as the modes of payment are limited to cash. It will be a challenge to engage potential customers, especially in rural areas, financially.

Further, Indonesia has a high regional gap in its infrastructure and logistics. This means that connectivity and the flow of supplies and products are not as fluid as those in other countries. This, however, is an opportunity for businesses in these industries to develop Indonesia’s business ecosystem.

Register a Company with Professional Guidance

Are you now more decided whether to push through with opening a business in Indonesia? Get professional help on your business registration with 3E Accounting Indonesia. Our competent teams are experts in company formation and business registration so you can be assured that your registration is handled professionally and with care.

Contact us today to know more information like how much to register a company and what documents are necessary. Avail of our expert services and successfully launch your dream business in Indonesia.