Doing Business in Surabaya

1. Manufacturing:Surabaya boasts a robust manufacturing sector, particularly in industries such as shipbuilding, electronics, and food processing. The city’s strategic location with a busy port facilitates efficient logistics and export capabilities, bolstering its manufacturing prowess in East Java.(Ministry of Industry of Indonesia).

2.Services:The services sector in Surabaya is diverse and expanding, encompassing finance, trade, logistics, and hospitality. The city serves as a regional hub for trade and commerce, supported by a network of banks, commercial centers, and transport infrastructure. (Bank Indonesia)

3.Maritime and Trade: Given its historical significance as a major port city, Surabaya continues to thrive as a center for maritime activities and trade. The port of Tanjung Perak is one of Indonesia’s busiest ports, facilitating extensive international trade and contributing significantly to the local economy.

4.Education and Health Services: Surabaya hosts several universities, hospitals, and healthcare facilities, making it a regional hub for education and medical services. These sectors not only support local residents but also attract students and patients from surrounding areas.

5.Tourism and Hospitality: Surabaya is increasingly attracting domestic and international tourists, supported by its cultural heritage sites, shopping centers, and vibrant culinary scene. The city’s hospitality industry continues to grow, catering to both leisure and business travelers.

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.

Surabaya, Indonesia’s second-largest city, has a population of about 3 million. As a significant commercial and industrial hub, it attracts a mix of business professionals, industrial workers, and students, resulting in a diverse consumer market.

Surabaya’s economy is bolstered by manufacturing, trade, and services. Higher disposable incomes, particularly among the professional and business communities, create strong demand for various goods and services. The city’s strategic location as a port city also enhances its economic activity.

Surabaya occupies a strategic location on the northern coast of East Java, making it a vital hub for trade and commerce in the region. Key infrastructure includes:
1) Juanda International Airport: Serving as the main gateway to East Java, Juanda Airport handles both domestic and international flights, supporting regional connectivity.
2) Tanjung Perak Port: As Indonesia’s second busiest port after Tanjung Priok in Jakarta, Tanjung Perak Port plays a crucial role in facilitating maritime trade and logistics for Surabaya and surrounding areas.
3) Public Transport: Surabaya has an evolving public transport network, including buses and taxis.

Surabaya boasts a diverse and dynamic workforce, supported by several universities, vocational schools, and technical institutes. The city’s urbanization trend reflects a growing consumer market, presenting opportunities across various sectors such as retail, real estate, and services.

Surabaya offers opportunities for investors interested in renting out residential and commercial properties. Areas like the city center and suburban business districts attract demand, potentially offering favorable rental returns. Explore our Property Management Services to maximize your investment.

The real estate market in Surabaya is seen as a stable investment option, with growth prospects bolstered by urban development and infrastructure improvements. Foreign investors can explore property acquisitions under specific conditions regulated by Indonesian laws.  Learn more about our Property Acquisition Services.

Businesses in Surabaya 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:

PT Sido Muncul
PT Sido Muncul, a prominent herbal medicine company, expanded its operations in Surabaya by leveraging local botanical expertise and cultural affinity for traditional remedies. Their adaptation to local tastes and preferences, coupled with strategic partnerships with local healthcare providers, contributed to their sustained growth and market leadership in East Java’s health and wellness sector.

Warung Pintar
Warung Pintar, a tech-enabled micro-retail startup, successfully entered the Surabaya market by transforming traditional street stalls into modern, digitally equipped retail spaces. Their rapid expansion across Surabaya was supported by strategic partnerships with local suppliers and government initiatives promoting micro-business growth. Warung Pintar’s innovative approach to retailing and community engagement positioned them as a leading player in Surabaya’s retail sector.

PT PAL Indonesia
PT PAL Indonesia, a state-owned shipbuilding company, capitalized on Surabaya’s strategic maritime location and skilled workforce to establish itself as a global player in the shipbuilding industry. Their participation in government-led infrastructure projects and international trade fairs further enhanced their reputation and market presence in Surabaya and beyond.

Surabaya’s economy is poised for steady growth, driven by ongoing infrastructure developments and industrial initiatives within East Java. These include improvements in transportation links and the establishment of industrial zones to enhance business environments.

While Surabaya presents growth opportunities across various sectors, businesses may encounter challenges such as regulatory compliance and infrastructure development. However, sectors like renewable energy, fintech, healthcare, and digital services show promising potential for expansion.