When deciding where to start a business in Indonesia, the richest provinces are an important factor.
“Richest” can refer to various indicators. Here, we use GDP per capita to measure local purchasing power and productivity; investment realization to measure industry implementation and depth; and growth and incentives to measure future growth potential.
DKI Jakarta is the richest province in Indonesia, with the highest GDP per capita, strongest financial sector, and most advanced infrastructure. West Java follows as the national manufacturing hub, while North Maluku emerges as a surprising high-growth region, driven by nickel mining.
Also read; Major Industries in Indonesia (Based on Contribution to GDP)
Why DKI Jakarta Leads the Rankings
Jakarta is Indonesia’s economic heart. It contributes significantly to national GDP and is home to the country’s largest banks, technology companies, and multinational headquarters. Businesses benefit from well-developed infrastructure, direct access to international markets, and the highest concentration of skilled workers.
For entrepreneurs in finance, technology, and professional services, Jakarta offers unmatched advantages. The province scored the highest in business opportunity metrics, making it the most business-friendly region.
Also read: Best Business Districts in Jakarta: Top Areas for Investment
West Java: The Manufacturing Powerhouse
West Java is not the wealthiest by GDP per capita, but it excels in industrial investment. The province attracted IDR 174.6 trillion in investment in 2022, the highest in the country. It also leads in foreign direct investment (FDI), especially in automotive, textiles, electronics, and food processing.
With well-planned industrial estates and proximity to Jakarta, West Java is ideal for manufacturing and export-oriented businesses.
North Maluku and Central Sulawesi: Emerging Growth Engines
If growth potential is the main priority, eastern provinces like North Maluku and Central Sulawesi deserve attention. Both regions recorded double-digit GDP growth, powered by nickel processing for the global electric vehicle industry.
While infrastructure challenges remain, investors who enter early can benefit from high returns in resource-based industries.
East Kalimantan: Powered by Resources and the New Capital
East Kalimantan stands out for its energy sector—oil, gas, and coal remain dominant. However, it also benefits from the new capital city project, IKN Nusantara, which is driving infrastructure development and attracting long-term investment opportunities.
GDP Data for Provinces in Indonesia and Their Key Industries
| Province | GDP per capita 2024 (millions IDR) | Key Industries | Region |
| DKI Jakarta | 344.35 | Finance, Services, Technology | Java |
| East Kalimantan | 212.18 | Mining, Energy, New Capital (IKN) | Kalimantan |
| North Kalimantan | 185 | Mining, Coal, Palm Oil | Kalimantan |
| West Papua | 145.2 | Mining, Oil & Gas, Forestry | Papua |
| Riau | 120.5 | Oil & Gas, Palm Oil, Manufacturing | Sumatra |
| Central Sulawesi | 110.2 | Nickel Mining, Smelting, Manufacturing | Sulawesi |
| Central Papua | 105.8 | Mining, Agriculture, Forestry | Papua |
| Riau Islands | 95.8 | Manufacturing, Shipbuilding, Tourism | Sumatra |
| West Java | 95.5 | Manufacturing, Automotive, Textiles | Java |
| North Maluku | 95.5 | Nickel Mining, Battery Materials | Maluku |
| Bali | 89.7 | Tourism, Agriculture, Manufacturing | Bali |
| Banten | 88.4 | Manufacturing, Automotive, Chemicals | Java |
| East Java | 85.2 | Manufacturing, Heavy Industry, Agriculture | Java |
| North Sumatra | 75.6 | Palm Oil, Manufacturing, Agriculture | Sumatra |
| South Sumatra | 72.1 | Oil & Gas, Coal, Palm Oil | Sumatra |
| South Sulawesi | 68.9 | Agriculture, Manufacturing, Mining | Sulawesi |
| West Sumatra | 67.4 | Mining, Agriculture, Tourism | Sumatra |
| Central Java | 65.3 | Manufacturing, Agriculture, Textiles | Java |
| Jambi | 62.3 | Oil & Gas, Palm Oil, Agriculture | Sumatra |
| Lampung | 58.9 | Agriculture, Manufacturing | Sumatra |
Special Economic Zones: Incentives Across Provinces
Indonesia has 22 Special Economic Zones (SEZs) offering attractive incentives, such as corporate tax holidays of up to 30 years, import duty exemptions, and simplified licensing. Provinces like Central Java, Bali, and Batam are leveraging SEZs to attract investors in manufacturing, health tourism, and creative industries.
Also read: The Benefits of Investing in Indonesia’s Special Economic Zones (SEZs)
Key Takeaway: Choosing the Right Province
- Best overall: DKI Jakarta is the top choice for finance, service industries, and startup ventures.
- Best for manufacturing: West Java stands out as Indonesia’s strongest hub for industrial activity.
- Best for high growth: North Maluku and Central Sulawesi are key regions for natural resource processing.
- Best for long-term investment: East Kalimantan, supported by IKN Nusantara.
Your business location should align with your sector and growth strategy.
Note: If your business model is service-heavy or capital-light, Jakarta’s density yields faster sales cycles; for factory plays, West Java converts capex into output more reliably; for resource-based scaling, North Maluku’s trajectory is hard to ignore.
Also read: Why Foreign Founders Prefer Jakarta, Bali, and Batam for Their Business Ventures
How InvestinAsia Helps
Starting a business in Indonesia can be complex, with multiple layers of regulations and province-specific opportunities. InvestinAsia provides end-to-end Indonesia company registration services, guiding investors through legal setup, licensing, and compliance. Whether you plan to open in Jakarta, West Java, or the fast-growing eastern provinces, their team ensures a smooth and compliant registration process.
We also provide other services such as:
- PMA registration in Indonesia (Foreign Company)
- Representative office registration in Indonesia
- Indonesia Local PT PMDN Set Up
- Indonesian Virtual office setup
- Business registration number in Indonesia
- Business Licenses in Indonesia
- Trademark Registration in Indonesia
- Franchise License in Indonesia
If you are interested in starting a business in Indonesia without hassle, you can start by contacting us for FREE consultation.
With expert guidance, you can focus on scaling your business while InvestinAsia handles the bureaucracy.
Start your company registration with InvestinAsia’s experts today!
FAQs
What is the richest province in Indonesia?
DKI Jakarta is the wealthiest province, with the highest GDP per capita and most advanced business ecosystem.
Which province attracts the most investment?
West Java dominates in investment realization and remains the nation’s manufacturing center.
Where is the fastest-growing province?
North Maluku achieved 20.5% GDP growth in 2023, driven by its nickel mining and processing sector.
Are there tax incentives for investors?
Indonesia’s SEZs provide generous incentives, including tax holidays of up to 30 years, VAT relief, and exemptions on import duties.
Is infrastructure a challenge outside Java?
Yes, eastern provinces face logistical challenges, but rapid development is underway with government support.
References:
KADIN Indonesia. Provincial Economic Profile. https://kadin.id/en/data-dan-statistik/profile-ekonomi-provinsi/.
ASEAN Briefing. Where to Invest. https://www.aseanbriefing.com/doing-business-guide/indonesia/where-to-invest.
Katadata. Regional Gross Domestic Product (RGDP) per Capita of 38 Indonesian Provinces in 2024. https://databoks.katadata.co.id/en/pdb/statistics/6811da32404f3/regional-gross-domestic-product-rgdp-per-capita-of-38-indonesian-provinces-in-2024.
