Doing Business in Yogyakarta

1.Manufacturing: Yogyakarta hosts a diverse manufacturing sector, specializing in industries such as handicrafts, furniture, and food processing. The city’s artisanal traditions and skilled workforce contribute to its reputation as a hub for traditional and creative industries, supporting both local markets and export opportunities.

2.Services: The services sector in Yogyakarta is multifaceted, encompassing education, tourism, and cultural industries. The city’s role as a cultural and educational center attracts a significant number of students, scholars, and tourists, bolstering sectors such as hospitality, education services, and cultural tourism.

3.Education and Cultural Heritage: Yogyakarta is renowned for its rich cultural heritage and academic institutions. The presence of prestigious universities and cultural landmarks attracts students, researchers, and tourists alike, stimulating economic activity in education, arts, and heritage preservation (Ministry of education).

4.Tourism and Hospitality: Yogyakarta is a popular tourist destination, known for its historical sites such as Borobudur and Prambanan temples, as well as its vibrant arts and culinary scene. The city’s tourism industry continues to grow, supported by a range of accommodations, cultural events, and local attractions that cater to domestic and international visitors.

5.Innovation and Entrepreneurship: Yogyakarta is emerging as a hub for innovation and entrepreneurship, particularly in creative industries and technology startups. Initiatives to support local startups and incubators are fostering a dynamic entrepreneurial ecosystem, contributing to economic diversification and job creation in the region (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.

Yogyakarta, with a population of approximately 3.8 million, offers a unique blend of urban and rural consumers. The city is renowned for its cultural heritage and academic institutions, attracting students, tourists, and locals, creating a diverse consumer base.

Yogyakarta’s economy benefits from its status as a cultural and educational hub. While the city has a lower average income compared to Jakarta, its steady influx of tourists and students boosts spending in sectors like retail, hospitality, and dining.

Yogyakarta’s strategic location in central Java positions it as a cultural and educational hub with growing economic significance. Key infrastructure includes:
1) Adisucipto International Airport: Handling approximately 6 million passengers annually, facilitating regional and international travel.
2) Tugu Railway Station: A major railway hub with over 30,000 passengers daily, connecting Yogyakarta with other cities in Java, enhancing transportation links.
3) Public Transport Network: Yogyakarta boasts a developing public transport system, including over 200 Trans Jogja buses and taxis, supporting urban mobility.

Yogyakarta hosts a young, educated workforce, supported by prestigious universities such as Universitas Gadjah Mada and vocational schools. Urbanization trends indicate a rising consumer market, with the city’s population expected to reach 1.7 million by 2025, driving opportunities in retail, real estate, and services sectors. The city’s cultural heritage and tourism also contribute to its economic vibrancy.

Yogyakarta offers attractive opportunities for investors in both residential and commercial properties. Areas like Malioboro and the central business district are particularly sought after, ensuring rental yields of up to 9% annually. Explore our Property Management Services to maximize your investment.

Investing in property in Yogyakarta is considered a stable long-term option. The real estate market demonstrates consistent growth, with property prices appreciating by 10% annually, appealing to foreign investors under specific regulatory conditions set by the Indonesia Investment Coordinating Board. Learn more about our Property Acquisition Services.

Businesses in Yogyakarta 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:

Doku: Founded in Yogyakarta in 2007, Doku is a leading digital payment service provider in Indonesia. It has played a pivotal role in transforming the country’s digital economy by offering secure and convenient online payment solutions. Doku’s success story underscores Yogyakarta’s emergence as a hub for fintech innovation in Southeast Asia.

Kedai Kebun Forum: Established in 1996, Kedai Kebun Forum is an independent cultural institution based in Yogyakarta. It serves as a platform for artists, writers, and intellectuals to showcase their work and engage in critical discourse. Through its diverse programs and exhibitions, Kedai Kebun Forum has contributed significantly to Yogyakarta’s vibrant arts and cultural scene.

Gadjian: Founded in Yogyakarta, Gadjian is a prominent startup specializing in human resources management solutions. It provides cloud-based payroll and HR software tailored for Indonesian businesses, offering efficiency and compliance in workforce management. Gadjian’s growth exemplifies Yogyakarta’s role as a nurturing environment for tech startups and innovative enterprises.

These success stories highlight Yogyakarta’s dynamic entrepreneurial spirit and its ability to foster innovation across different sectors, from technology and fintech to arts and culture.

Yogyakarta’s economic outlook is promising, supported by ongoing infrastructure developments and government initiatives aimed at enhancing business competitiveness. Projects such as the Yogyakarta International Airport expansion and tourism infrastructure improvements, with an investment of USD 1.5 billion, are set to bolster connectivity and economic growth.

While Yogyakarta presents promising opportunities across various sectors, challenges such as regulatory frameworks and infrastructure development remain significant. However, the city’s rich cultural heritage, educational institutions, and supportive business environment offer substantial growth potential for entrepreneurs and investors looking to establish or expand their ventures in Indonesia.