Indonesia is the third-largest democracy in the world. In the last 50 years, Indonesia has grown as the biggest market in Southeast Asia, and it has experienced rapid economic changes as well. Because of its booming market and strategic geographic location, there are lots of advantages with setting up an office in Indonesia. Benefits of setting up an office in Indonesia
1. Geographic Location Situated in Southeast Asia, Indonesia consists of 17,508 islands. It’s the fourth most populous country on earth. The closest neighbours to Indonesia are the Philippines, Singapore, Malaysia, Australia and Papua New Guinea. The country ranks fifth in the world on the listing of countries with the longest waterways, making it a great location for doing business. 2. Booming Market Indonesia‘s economy has grown as the biggest in Southeast Asia and the country is currently a member of the G20 leading markets in the world. Indonesia’s top export destinations and investors are Singapore, China, Japan and the USA, but a lot of other nations are taking advantage of the competitive marketplace. So, it’s a good place to set up a business.
3 Authorities’ Anti-corruption Strategies From way back its independence, Indonesia has suffered from corruption in politics and in all levels of businesses. This corruption along with complicated bureaucracy created problems for companies interested in setting up an office in Indonesia. In 2004, the first democratic elections were held that brought in a democratic president. The new government has since then fought vehemently against corruption, no matter who’s involved. This is a favourable change that makes doing business in Indonesia even more appealing. Other things to know before setting up in Indonesia 1. Tough geography Indonesia is made of more than 17,000 islands. This means that things like internet penetration rates and logistics are known obstacle for web businesses. Things are changing however and as a new establishment, you should be fast to adapt.
2. Demographics Indonesia has a population of more than 250 million. Over 50 percent of this population are under the age of 30, making them statistically ready when it comes to understanding and embracing new technology. Moreover, individuals are always purchasing things and this has pillared the Indonesia’s marketplace. An emerging middle class has become the focus of several e-commerce companies, both national and foreign. Present popular verticals include financial, automotive, real estate, fashion, lifestyle, and on demand services. In fact many are fore casting that Indonesia is set to be Asia’s biggest market for E Commerce. Nevertheless, capitalizing on the favourable demographics in Indonesia is easier said than done. Presently, online shopping accounts for less than 1 percent of the retail sector in the country – quite small compared to China, where e-commerce makes up about 10 percent of all retail trades.
3. Opportunity in payments infrastructure Many Indonesians are yet to enter the banking system. Additional, less than 5 percent own credit cards. It’s unlike developed markets, such as the United States for instance that has efficient payments infrastructures that rest on the keystone of the Europay, MasterCard etc. Indonesia is mostly a cash-based market. This drives establishments to explore creative paths that call for things like alternate payment gateways, e-wallets, and cell phone credit.
As you can see from the above, Indonesia provides both challenges and opportunities for new businesses. With the right strategy and execution, you can have huge success here. And setting up a business starts with an office. If you’re in need of a serviced office in Indonesia, AsiaServicedOffices has the right solutions for you! Contact us today for a non obligatory discussion today.