Business Investment Opportunities – The global recession is in sight. Every country with a big economy is struggling to keep its growth with so many challenges ahead: the high unemployment rate in the US, the war & food crisis in Europe, the pandemic in China, etc.
However, in some countries like Indonesia, the economy is already moving in a positive direction. That’s why it is great to find business investment opportunities in Indonesia, whose economy has grown 5.7% year-on-year in the third quarter of 2022. [1]
Find out why Indonesia is perfect for your investment and what hidden gem businesses to invest in in Indonesia which have the potential to grow and make a profit.
Why Indonesia is a Perfect Destination for Investment
Indonesia has all the qualifications to be an investment destination country. Steady increasing GDP, political stability, conducive investment climate, and abundant natural resources both for manufacturing supply and tourism activities, are some reasons you should invest there.
Moreover, do not forget about its population, which has reached more than 275 million people in 2022. Around 70% or 190 million are of productive ages and need jobs. This makes Indonesia have lower labor wages than most other countries. [2]
Not only that, the high and dense population can also serve as a big and potential market for any products and services. That’s why many brands are eager to open their businesses in Indonesia, which has the biggest domestic market in South East Asia. Business Investment Opportunities-
7 Business Fields to Invest in Indonesia
Business Investment Opportunities – You can invest in many fields of business in Indonesia to make some profits. It is quite easy to find business opportunities in Indonesia because it has some challenging problems that must be solved.
Besides, with its natural resources, Indonesia has become one of the biggest exporters of some commodities, such as minerals, palm oils, coals, etc. The number of natural beauties that Indonesia has also become a magnet that attracts tourists from all over the world.
In short, here are 7 business fields in Indonesia where you can make huge profits.
1. Infrastructure
In the last 8 years, infrastructure development has become the main attention of the government. Under the leadership of President Joko Widodo, the Indonesian government is accelerating infrastructure development all over the country.
The government budget for infrastructure development is steadily increasing, from Rp150 trillion in 2014 to Rp368 trillion in 2022. However, that is still not enough. The Indonesian government is still actively looking for investment in this field, both from domestic and foreign investors. [3]
Through the Public-Private Partnership Scheme, Indonesia is working to encourage private participation in infrastructure development by up to 40%. This can be an opportunity to make a long-term investment in Indonesia.[4]
2. Agriculture
Indonesia is widely known as one of the biggest exporters countries for many agricultural commodities. This country has fertile soil and great weather for planting all year around and thus can produce agricultural commodities needed by the entire world population.
Palm oil is the main commodity of Indonesian agriculture products. In 2021, Indonesia produced more than 51 million tons of palm oil. Only 18 million tons were for domestic needs, and the rest went to other countries. [5]
Not only that, but as the 4th most populated country in the world, Indonesia needs agricultural products to feed its people. Rice, meat, fishes, and other food products are always in demand. The demand is also increasing, which makes this field a great business investment opportunity in Indonesia.
3. Mining Industry
The mining industry is also one of the biggest contributors to the Indonesian economy. Gas, minerals, and coal are the main stars in this industry.
Indonesia is the biggest nickel-producing country in the world, with 21 million reserves known. The total nickel production in 2021 reached up to 1 million metric tons, far exceeding its competitors, such as the Philippines, Russia, and Australia. [6]
Indonesia is also experiencing an increase in demand for coal, especially after the Russia-Ukraine war, which pushes the World (particularly Europe) into an energy crisis. With the increasing demand, this field has become a great business investment opportunity in Indonesia.
4. Manufacturing Industry
With more than 275 million people, Indonesia is in constant demand for manufacturing products. Automotive, furniture, textiles, and FMCGs (fast-moving consumer goods) are some fields that will always have buyers in this country.
Many brands are relocating their businesses to Indonesia. Not only because the production cost in Indonesia is relatively lower than in other countries, but the population also serves as a potential market.
The realization of foreign investment in the manufacturing industry in Indonesia is soaring from Rp236,8 trillion in 2021 to Rp365,2 trillion in September 2022 (y-o-y). This shows how much this industry has grown and how big it will be. So, investment in this business field is also potential. [7]
5. Energy Industry
The energy industry has also been boosting in the last 8 years. The government decides to give full support to this industry as the backbone of other industries and the country’s economic growth.
Indonesia is targeting an additional 35,000 Megawatts of power generation capacity by 2029. By 2020, only 20% of this challenging goal had already been reached. [8]
More power plants are still in the building process, but the goal is still too far to reach. This makes the opportunity to invest in this business field still widely open.
Renewable Energy plants are also being developed in order to achieve an optimal primary energy mix by 2025. This can be your entry point for investment in the energy industry in Indonesia.
6. Tourism Industry
Indonesia also has natural beauties that spoil the eyes. Many tourists from all over the world and Indonesia are excited to enjoy the beauty of nature. Indonesian Central Bureau of Statistics states that the number of foreign tourists will be up to 3.92 million people by the end of 2022. [9]
Most foreign tourists visit Bali as the gorgeous island in the world. With its captivating views and astonishing culture, Bali is undoubtedly a strong magnet for tourists worldwide.
With the world recovering from the pandemic, tourism has become more attractive as a place to invest. The tourism industry has been proven to move money to many stakeholders and related parties. It is your time now to make a profit from this industry.
7. Digital Industry
Indonesia’s GDP has grown tremendously, from US$ 740 billion to US$ 1.2 trillion by the end of 2022. However, little did people know that 61% of those are generated from micro and small businesses. [10] [11]
Small businesses in Indonesia have been proven to be the ultimate protectors from crisis from time to time. They have also become the main reason why Indonesia’s economy can recover quickly from the pandemic and is immune from recession.
Nevertheless, out of 64 million micro and small businesses in Indonesia, only 30% of them use digital marketing and e-commerce. More than 45 million businesses still don’t utilize digitalization in their business.[12]
This makes the digital industry a potential business in Indonesia. Many startups in Indonesia are taking on the digital industry as their business field. Some of them are able to become “unicorn”, which drives the local economy. That is why the digital industry is also one of the potential business investment opportunities in Indonesia.
Recommended Hidden Gems to Invest in Indonesia
Before you make any moves to invest, you should know that some industries have more entry barriers than others. While some sectors offer huge profits, the capital to enter the business is also huge.
Mining and infrastructure industries are considered big industries which need at least hundreds of millions of dollars to enter. Energy and manufacturing industries require less capital, but still, they can reach tens of millions of dollars.
Agriculture, tourism, and digital industries require the least. Therefore, these are 3 business fields you need to pay attention to if you are trying to invest in Indonesia for the first time.
Among all businesses in these fields, here are three recommendations of hidden gems for investment.
Araca Milk (Agricultural Industry)
Araca Milk is the first Etawa goat farm in Bali. They use the latest technologies and applied sciences to raise the goats and produce excessively nice goat milk, which is true to forestall stunting in children.
@aracamilk hi everyone! Look, our goat farm is very sterile😍 To produce quality fresh milk we always maintain health and hygiene on the farm! #fyp #fypシ #goat #goatmilk #susukambing #susukambingbali ♬ suara asli – Araca Milk
Goat milk has top-of-the-line benefits over cow’s milk, which is good for preventing stunting. It is less complicated to digest, much less allergenic and has greater mineral contents. According to the Indonesia Nutritional Status Study in 2021, 24.4% of children in Indonesia are stunted. [13]
However, goat milk is less famous than cow milk in Indonesia. The manufacturing of cow milk is numerous instances greater than goat milk. It is probably because dairy cows are more frequent in society than dairy goats.
Nevertheless, the manufacturing of goat milk is growing steadily. According to the Indonesia Central Bureau of Statistics, the common amplification in milk manufacturing over 12 months is around 14%. [14]
Drinking milk is one of the best approaches to stop stunting. Milk is handy to distribute, effortless to consume, and has superb dietary properties. A glass of milk carries one-fifth of the daily energy intake for children.
As a startup enterprise in this field, it is a considerable probability of investing in Araca Milk. Even in the recession, we all wish to take meals and drinks. That’s why this enterprise is a high-quality vicinity to locate your investment.
Check out their website for more information:
PT. Araca Milk Industry
- Website : https://aracamilk.com/
- Instagram : https://www.instagram.com/aracamilk/
- WhatsApp : +628113700387
- Youtube : https://www.youtube.com/@araca-milk-susu-kambing
- TikTok : https://www.tiktok.com/@aracamilk
- Twitter : https://twitter.com/AracaMilk
Business Address: Jl. Raya Singapadu No.10, Singapadu Kaler, Kec. Sukawati, Kabupaten Gianyar, Bali 80571
Candi.id (Tourism Industry)
Candi.id is a rising startup aiming to promote tourism and nearby businesses to the world, particularly in Bali.
Most overseas vacationers have been traveling to Bali, the most famous island in Indonesia. The seashores and different natural beauties, alongside special cultural things to do, are some motives why many vacationers are keen to go to Bali.
Content creation and digital marketing are the main services of Candi.id. It helps many companies entice and get extra clients.
@candi.id.official Coba sebutin banjar kalian apa namanya cheers!😍 #pengerupukan2022 #nyepicaka1944 #ogoh_ogoh_bali ♬ DJ TUKARAN SEMVAK – DJ MAYA FYZ
With the upward push of the web of matters and social media, the demand for Candi.id offerings is additionally rising. More vacationers reached Candi.id to find some appealing locations to visit. More organizations hope to be promoted to gather new customers. As a hooked-up content material channel with high value and engagement, this business has great potential to grow more and more.
@candi.id.official Ngopi dulu yuk bareng kita? Pastinya di Kopi Pangeran 🤴🏻 #candi #fyp #foryoupage #JamTerbangTraveloka #kopipangeran #kuliner #bali ♬ Mood – Tom Mallari 🇵🇭
Candi.id is presently searching for investors, which should be a precise business investment opportunity in Indonesia. Reach out to them through their official website, and social media account for further information.
- Website : https://candi.id/
- Instagram : https://www.instagram.com/candi.id.official/
- WhatsApp : +628118867897
- Twitter : https://twitter.com/candiidofficial
- Email : [email protected]
- Youtube : https://www.youtube.com/@candi2628
- TikTok : https://www.tiktok.com/@candi.id.official
Arfadia (Digital Industry)
Arfadia is a great digital advertising organization corporation in Indonesia. Using digital marketing, it helps small and giant groups to set up a sturdy branding and reap extra loyal clients to grow the business.
Arfadia specializes in 360° advertising campaigns and each offline and online media usage. This employer provides the new era of search engine optimization, which is not only solely focused on the website, but all factors of the brands, consisting of expertise, authoritativeness, and trustworthiness of the business.
Not solely that, Arfadia additionally presents communication and digital blueprint techniques with verified results. It additionally gives social media campaigns, paid ads, native advertising ads, search engine optimization, and greater than 20 offerings in the digital and net advertising field.
The all-in-one offerings they provide are demonstrated to assist their purchasers in having a transformational increase and gathering extra customers. With an extra decade of experience in their field, Arfadia is excellent for you to make investments in the digital industry in Indonesia.
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ght: 400;”>Check their official website and social media account to know the place you’ll put your money into.
PT. Arfadia Digital Indonesia
- Website : https://www.arfadia.com/
- Instagram : https://www.instagram.com/arfadia/
- Whatsapp : +628118867897
- Twitter : https://twitter.com/arfadia
- Email : [email protected]
- Youtube : https://www.youtube.com/user/ArfadiaMedia
Business Address : Raudha Building 1st Floor. JL. Kuningan Barat II No. 21, Mampang Prapatan. Jakarta Selatan, 12710, Indonesia.
The three hidden gem business investment opportunities in Indonesia above are the best in their field. The entry barrier to investing is low. Thus, investing in those businesses is ideal for most foreign people.
Business Investment Opportunities-
Source:
https://www.investindonesia.go.id/en/why-invest/business-opportunities
https://www.cekindo.com/blog/6-small-business-opportunities-to-venture-in-indonesia
https://aptika.kominfo.go.id/2022/10/100-pelaku-usaha-kecil-ikuti-umkm-go-online-virtual-expo-2022/ https://databoks.katadata.co.id/datapublish/2022/09/30/era-bonus-demografi-69-penduduk-indonesia-masuk-kategori-usia-produktif-pada-juni-2022
https://stunting.go.id/percepat-turunkan-stunting-12-provinsi-harus-jadi-prioritas/
https://tegalkab.bps.go.id/indicator/24/171/1/produksi-susu-sapi-dan-susu-kambing-menurut-bulan.html
