Top Potential Cities in Indonesia to Run a Business

If you are an entrepreneur, you should think about starting or growing your business in Indonesia.

The nation is the fourth most populous country in the world with 270 million people, and thus has a large pool of human resources for entrepreneurs. Moreover, despite the fact that Bahasa Indonesia is the official language of Indonesia, business in big cities like Jakarta is mostly done in English.

Indonesia is also one of the strongest economies in Southeast Asia. It never stops growing! Due to Indonesia’s high growth economy, businesses can capitalize on emerging sectors. In addition, Indonesia is a member of major multinational organizations, such as ASEAN and the G20. Therefore, growing your business in Indonesia means that you have an opportunity to expand your connections with Indonesia’s trading partners.

There are many other advantages of running a business in Indonesia. With that, you can think about where the best places are to start. The following are the top potential cities in Indonesia to operate your business:


first potential city for business
Selamat Datang Monument, Central Jakarta

No wonder the capital of Indonesia is the best place to grow a business. Jakarta is the heart of the economy in Indonesia. Most company headquarters are in Jakarta. As the largest metropolitan area in Indonesia, also in Southeast Asia, Jakarta has become an attraction for global investors to place their money. This is supported by a large population – about 10 million people – adequate infrastructure, and a modern transport system.

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second rank
Denpasar, Bali

The Island of Gods is always the most attractive place for national and international tourists. Every year, millions of tourists visit Bali to enjoy the fascinating views, such as beaches and waterfalls. Therefore, this is an excellent opportunity for entrepreneurs to build a business in hospitality sectors, such as restaurants, night clubs, and hotels.


the second largest city
Traffic view at Bambu Running Monument, Surabaya

As the second largest and most popular metropolitan area in Indonesia, Surabaya has managed to attract many foreign investors to do business. With about 2.8 million people, this city is considered rich in human resources. The city also has a good supporting infrastructure for business, such as a good transport system to serve local and international destinations. In Surabaya, there is great potential to start a business in the manufacturing, agriculture and retail sectors.


good place for business
Asia Africa Street, Bandung

Bandung is known for developing high-end creative industries such as architecture, design, information technology, films and fashion. This is the best place to start a creative industry. In addition, Bandung is visited by many tourists every year to come to the shopping areas. This opens up opportunities for the development of a retail business. Bandung is also suitable for startup businesses and is expected to become the Silicon Valley of Indonesia.

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Business center in Sumatra
Balai Kota Street, Medan

Medan has the largest economic scale outside of Java. Therefore, Medan has become the business center in Sumatra. This is supported by its strategic location; it has a seaport and an international airport. The location is close to Singapore so it is able to facilitate all nearby entrepreneurs, especially from Malaysia and Singapore, to escalate their business network. Therefore, Medan is a very promising place for trading companies. This city also has fertile land suitable for agricultural business.


Business location in Sumatra
Ampera Bridge, Palembang

As the second largest city in Sumatra, Palembang has a reasonable potential to start or grow a business. Palembang has a strategic location and many natural resources, especially coal. Thus, this city is suitable for mining companies. It is also known for always being the main venue for international events, such as Asian Games, SEA Games, and PON. Therefore, many national and international tourists want to come to watch the events. This is a good signal for hospitality and event organization businesses.

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Singapore of Indonesia
Nagoya District, Batam

Batam is about to “Singapore of Indonesia”. It is famous for its steel and electronics industries which are attractive to investors and entrepreneurs. This city is one of the developing cities in Indonesia. In addition, its strategic location, especially for international shipping lanes, also facilitates trade routes.


Business center in central Java
Lawang Sewu, Semarang

Semarang is the main market of the province and has adequate distribution channels for both domestic and international markets. New businesses in the industrial sector, such as food, textile, trade, metal and machinery, hotel, and chemical industries should flourish. Semarang has a population of two million and has a lower standard minimum wage than other major cities in Java.

Place for shops and jogja
Malioboro Street, Yogyakarta

Yogyakarta, popularly known as “Yoga“, offers a great opportunity for entrepreneurs who want to start a small business. One of the main reasons why Yogyakarta is a good place to run a business is because the rental fees and other expenses are cheaper. The standard minimum wage is considered low. Yogyakarta is also known as a tourist destination. Yogyakarta attracts many tourists, so it is a great place to start a business.


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