Why Invest in Indonesia?

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Strong domestic demand

Indonesia has 273 million people (2021), including 64 million middle affluent. It's the gateway to Southeast Asia's 650 million-strong market and a key to export based with FTAs across 22 countries, including RCEP.

Abundance natural resource potential

As a top nickel producer and key exporter of tin, bauxite, and palm oil, Indonesia is scaling up its downstream industries to meet global demand, backed by 20 Special Economic Zones and 120+ industrial estates.

Young and tech-savvy population

Two-thirds of Indonesia’s population are of working age, averaging 28 years old. In 2022, internet users reached 204.7 million (+1% growth) with 73.7% penetration, and 191.4 million are active on social media.

Strong political and economic stability

Indonesia scored 78.12 points out of 100 in the 2021 democracy index, categorized as “medium” category. Based on the ranking results of three international rating agencies, Indonesia is categorized as an investment-worthy country.

High openness to foreign investments

Indonesia now allows up to 100% foreign ownership in most sectors. The Job Creation Law (2020) simplifies investment regulations and licensing, making entry easier than ever. Enjoy benefits like tax holidays and more!

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.

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.

Indonesia is actively advancing its industrial downstreaming strategy to transform raw natural resources into higher-value processed commodities. Key sectors include nickel, bauxite, copper, and crude palm oil (CPO) processing, aimed at strengthening domestic manufacturing, creating sustainable jobs, and capturing greater economic value locally.

Food security is a national priority focused on enhancing agricultural productivity, developing food estate hubs, and adopting modern agri-tech solutions. Indonesia offers investment opportunities in sustainable farming, cold-chain logistics, livestock production, and aquaculture to ensure long-term food supply resilience.

As part of the global high-tech electronics supply chain expansion, Indonesia is positioning itself as a promising hub for semiconductor assembly, testing, and packaging (ATP). With abundant critical raw materials and growing tech infrastructure, the sector presents strategic opportunities for technology transfer and advanced manufacturing.

Driven by a rapidly expanding digital landscape, Indonesia is one of Southeast Asia's largest digital economies. Strategic investments focus on tier-III and tier-IV data centers, cloud infrastructure, AI integration, subsea fiber-optic connectivity, and digital financial ecosystems.

Indonesia’s manufacturing sector emphasizes export-oriented production across automotive, electric vehicles (EV), machinery, textiles, and consumer electronics. Supported by a skilled labor force, modern industrial parks, and competitive trade agreements, the country provides an ideal platform for international manufacturing.

Investment
Opportunity

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Ready-to-Offer Projects

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Investment Realization

Support from IIPC New York

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.

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.

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!

IIPC NEWYORK TEAM Update

The Indonesia Investment Promotion Center (IIPCUpdate) New York office is the official representative of the Indonesian Ministry of Investment and Downstream Industry/ 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.

Tessal Maharizky Febrian

DIRECTOR

Meidina Megan

DEPUTY DIRECTOR

Rakha Sadharma Singgih

INVESTMENT ANALYST

Kirana Ananda

INVESTMENT ANALYST