Doing Business in Jakarta

1.Manufacturing: Jakarta is a key manufacturing hub in Indonesia, particularly for automotive, electronics, and textiles. The manufacturing sector significantly contributes to exports and job creation, supported by several industrial parks and free trade zones (Ministry of Industry of Indonesia).

2.Services: The services sector in Jakarta, including finance, retail, and tourism, is rapidly expanding. The city is home to numerous shopping centers, banks, and hotels, catering to both locals and international visitors. Retail sales increased by 8% in 2024 (Bank Indonesia).

3.Technology: Jakarta is emerging as a technology and innovation hub in Southeast Asia. The city’s startup ecosystem is thriving, supported by government initiatives like “1000 Digital Startups Movement” aimed at nurturing tech entrepreneurs (Ministry of Communication and Information Technology).

Protecting intellectual property (IP) in Indonesia is crucial. The Directorate General of Intellectual Property oversees IP rights, including trademarks, patents, and copyrights (DGIP Indonesia). Utilize our Trademark Registration services to secure your IP rights.

Indonesian labor laws regulate employment contracts, working hours, and employee benefits. Compliance with the Labor Law is mandatory, including a maximum of 40 working hours per week and minimum wage requirements (Ministry of Manpower Indonesia).

Businesses must adhere to environmental protection laws, including waste management and pollution control, enforced by the Ministry of Environment and Forestry.

Jakarta, with a population of about 11 million, is a prime market for new businesses. The city’s diverse demographic includes young professionals, families, and expatriates. The median age of 29 highlights a youthful population eager to adopt new trends and technologies.

As the largest contributor to Indonesia’s GDP, Jakarta boasts significant economic growth and higher disposable incomes. This economic prosperity indicates a strong market demand for both essential and luxury goods and services.

Jakarta’s strategic location makes it a pivotal trade and commerce hub in Southeast Asia. Key infrastructure includes:
1) Soekarno-Hatta International Airport: Handling over 60 million passengers annually.
2) Tanjung Priok Port: The largest port in Indonesia, handling significant cargo throughput.
3) Public Transport Network: Includes the Jakarta MRT and TransJakarta bus rapid transit system.

Jakarta offers a large, young, and educated workforce, supported by numerous universities and vocational schools. Urbanization trends indicate a growing consumer market, with opportunities in retail, real estate, and services (Jakarta Government).

For investors looking to rent out residential or commercial properties, Jakarta offers lucrative opportunities. High demand in commercial areas like the Central Business District (CBD) and suburban business parks ensures attractive returns.  Explore our Property Management Services to maximize your investment.

Purchasing property in Jakarta is a sound long-term investment. The real estate market shows consistent growth, with attractive opportunities for foreign investors under specific condition. Learn more about our Property Acquisition Services.

Businesses in Jakarta must comply with Indonesian Financial Accounting Standards (SAK). Regular financial reporting and bookkeeping are essential to ensure compliance (Institute of Indonesia Chartered Accountants).

Indonesia imposes several taxes on businesses, including:

Gojek: Founded in 2010, Gojek started as a ride-hailing platform but quickly expanded into a super app offering a wide range of services including food delivery, digital payments, and more. It revolutionized urban transportation and digital services in Indonesia, becoming one of Southeast Asia’s most valuable startups.

Tokopedia: Launched in 2009, Tokopedia is Indonesia’s leading online marketplace. It connects millions of sellers with consumers across the country, offering a vast array of products ranging from electronics to fashion. Tokopedia’s success has transformed e-commerce in Indonesia and facilitated economic empowerment for many small businesses.

Traveloka: Founded in 2012, Traveloka has become a leading online travel agency in Southeast Asia, headquartered in Jakarta. It offers a comprehensive platform for booking flights, hotels, and travel activities across multiple countries. Traveloka’s user-friendly interface and competitive pricing have made it a preferred choice for travelers across the region.

While businesses in Jakarta may face challenges such as regulatory complexities and infrastructure bottlenecks, there are substantial growth opportunities in sectors like renewable energy, fintech, healthcare, and digital services (Indonesian Chamber of Commerce and Industry).

Jakarta’s economy is projected to grow by approximately 4.8% annually over the next decade, supported by significant infrastructure projects like the Jakarta-Bandung high-speed rail and new industrial zones (Asian Development Bank). These projects are expected to enhance the city’s connectivity and business environment.