Why Invest in Indonesia?

Southeast Asia's largest and steadily economy

Indonesia, the world's 16th largest economy with over US$1 trilion GDP, is projected by McKinsey to rank 7th by 2030. As Southeast Asia's sole G20 member, it has maintained stable growth above 5% annually for two decades.

WHY INDO

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HOW INVEST

Key Priority Sectors

Indonesia has a total renewable energy potential of 3,687 GW, compared to a current installed capacity of 15.2 GW. Breaking this down by source, solar energy holds by far the largest potential at 3,294 GW, followed by wind energy at 155 GW and hydropower at 95 GW. Additional resources include tidal energy with 63 GW, bioenergy at 57 GW, and geothermal energy with a potential of 23 GW.

The potential investment from 28 priority commodities between 2023 and 2040 is estimated at USD 618 billion. Key sectors driving this opportunity include nickel, copper, bauxite, and tin, along with downstream industries such as petrochemicals and fertilizers. The portfolio also covers strategic agricultural and bio-based commodities, including CPO (crude palm oil), sugarcane, seaweed, oleofood, biosolar, and bioethanol.

Indonesia has strong availability of key raw materials that support the upstream semiconductor industry, including silica for wafer production, gallium for compound semiconductors, copper for interconnections, bauxite (the primary source of aluminum), and gold for high-reliability electrical components. This resource base provides a solid foundation for developing an integrated semiconductor supply chain, from raw material processing to advanced manufacturing.

Indonesia’s digital economy market is projected to reach USD 180–340 billion by 2030, with an estimated growth rate of 14% between 2024 and 2025. This rapid expansion reflects strong momentum in e-commerce, fintech, digital services, and the broader technology ecosystem. In line with this growth, current data center capacity stands at approximately 330 MW, while projected demand is expected to increase significantly to around 1.5–2 GW by 2027, highlighting substantial opportunities for infrastructure development and investment.

Indonesia has strong potential to integrate into the Global Value Chain (GVC), supported by its resource base, industrial capacity, and expanding manufacturing ecosystem. This opportunity is further strengthened by Free Trade Agreements (FTAs) with major trading partners, including the European Union (EU), the European Free Trade Association (EFTA), China, Canada, India, and fellow member states of the Association of Southeast Asian Nations (ASEAN). These agreements enhance market access, reduce trade barriers, and improve competitiveness in the global market.

Indonesia is prioritizing the development of the pharmaceutical industry, medical devices manufacturing, and healthcare services as strategic sectors to strengthen domestic resilience and reduce import dependence. To support this agenda, dedicated health-focused Special Economic Zones (SEZs) have been established in Bali, Banten, and Batam, creating hubs for medical innovation, investment, and integrated healthcare services.

In the new capital city (IKN Nusantara), development opportunities span housing, education, hospitals, hotels, and other supporting sectors, creating a comprehensive urban ecosystem. Investors are offered attractive incentives, including a 30-year tax holiday, a simplified licensing process, and HGU (right to cultivate) for 95 years, which can be extended for an additional 95 years, providing long-term certainty for large-scale projects.

Indonesia is developing a full-spectrum education ecosystem, spanning preschool to university, to enhance human capital and support economic growth. Vocational education programs are particularly incentivized, with eligibility for a 200% super tax deduction to encourage investment in skills development. Dedicated Special Economic Zones (SEZs) for education have been established in Banten and East Java, serving as hubs for innovative learning and educational investment.

HOW TO INVEST

1. Observe the potential sectors/industries

Look up our market intelligence data to observe the most potential sectors and projects to tap in. Check Indonesia's Investment Business Sector to identify which business fields are open, open with certain conditions, or closed to foreign investment.

2. Set up a foreign representative office or a company in Indonesia

In order to conduct business in Indonesia, a potential investor could establish a temporary foreign representative office (FRO) or directly set up a company in Indonesia. The purpose of the FRO is to test the Indonesian market before committing to an investment. For further details, please refer to this page.

3. Register to the Online Single Submission (OSS)

OSS is the single online portal for investors to register and maintain their business license and activities in Indonesia. Click link here to access the OSS.

4. Obtain a Business Identification Number (NIB)

Login to the OSS portal and complete the required data to obtain a Business Identification Number (NIB).

5. Obtain a Business License and start operations

A Business License is issued with the commitment statement for location permits, environmental permits, and building construction permits.

INVESTMENT CLIMATE

Investment Opportunity

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Indonesia has a variety of

ready-to-offer projects

waiting for you.

Regional
Investment
Potential

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Indonesia Special Economic
Zones

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Indonesia Industrial Estates

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Ready-to-Offer Projects

Explore strategic projects across priority sectors tailored for diverse investor interests.

Agro Industry

Industry

Carbon Trading

Industrial Complex & Real Estate

Tourism

Infrastructure

Renewable Energy

Investment Realization

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HOW IIPC HELP

Support from IIPC

foreign representative office (fro)

setup

Along with the Indonesian embassy in your country, we can assist you in establishing a legal entity for your company in Indonesia.

letter of reference

As part of a company setup, the IIPC processes the letter of reference (LOR) for your company to operate in Indonesia.

Fill the form >

BUSINESS
GUIDELINE

This is a quick guide that elaborates on all the procedures and documents to establish your business in Indonesia.

FREQUENTLY
ASKED QUESTIONS

Read the FAQ to find out the potential solution of your investment in Indonesia. If you need further assistance, consult with us in person!

Connect with Our Team

Book a meeting

The Indonesia Investment Promotion Center (IIPC) New York office is the official representative of the Indonesian Ministry of Investment / Indonesia Investment Coordinating Board (BKPM) for the America region. It provides free consulting services on Indonesian investment opportunities, procedures, and assistance to identify potential local partners in Indonesia.

New York Office

370 Lexington Avenue Suite 1903

New York, NY 10017

iipc.newyork@bkpm.go.id

Tel: +1 (646) 885-6600

Indonesia Head Office

Indonesian Ministry of Investment / Investment Coordinating Board

Jalan Jendral Gatot Subroto No.44

Jakarta 12190

Tel: +6221-525-2008

CONTACT

Tessal Maharizky Febrian
Director

Meidina Megan
Deputy Director

Rakha Sadharma Singgih
Investment Analyst

Kirana Ananda
Investment Analyst

Why Invest in Indonesia?

Get the Latest Investment Briefing

Key Priority Sectors

HOW TO INVEST

Investment Opportunity

Regional Investment Potential

Indonesia Special Economic Zones

Indonesia Industrial Estates

Ready-to-Offer Projects

Explore strategic projects across priority sectors tailored for diverse investor interests.

Investment Realization

LATAM

US

Canada

Support from IIPC

foreign representative office (fro)

setup

letter of reference

​

​

BUSINESS GUIDELINE ​ ​

FREQUENTLY ASKED QUESTIONS

Connect with Our Team

New York Office

Indonesia Head Office

Tessal Maharizky Febrian Director

Meidina Megan Deputy Director

Rakha Sadharma Singgih Investment Analyst

Kirana Ananda Investment Analyst

Regional
Investment
Potential

Indonesia Special Economic
Zones

BUSINESS
GUIDELINE

FREQUENTLY
ASKED QUESTIONS

Tessal Maharizky Febrian
Director

Meidina Megan
Deputy Director

Rakha Sadharma Singgih
Investment Analyst

Kirana Ananda
Investment Analyst