Jakarta, the bustling capital city of Indonesia, presents a multitude of advantages for investors, both domestic and international. As a strategic location and economic powerhouse, Jakarta offers a range of benefits that make it an attractive destination for business investment. Here, we delve into the key reasons why businesses should consider Jakarta as their next investment hub.
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Strategic Location
Why Do Business in Jakarta: 9 Great Advantages Jakarta’s strategic position as the capital of Indonesia places it at the heart of Southeast Asia. This prime location makes Jakarta the gateway to the region, offering businesses access to a vast and diverse market. The city’s connectivity and proximity to other major Asian economies enhance its appeal as a strategic business destination.
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Large and Growing Market
Indonesia’s population is one of the largest in the world, with Jakarta alone home to approximately 10 million people. The country’s growing middle class, with 52 million economically secure individuals, represents a significant consumer base. Jakarta’s Gross Regional Domestic Product (GRDP) per capita in 2022 stood at around 298 million Indonesian rupiahs, highlighting the city’s economic vitality and evolving market.
Also read: Major Industries in Indonesia (Based on Contribution to GDP)
Government Support
The Indonesian government actively supports foreign investment in Jakarta. Initiatives to transform the city into an international logistics hub, promote green industries, and position Jakarta as a global economic center are underway. Efforts to streamline business processes, enact favorable regulations, and offer incentives in strategic sectors further enhance the ease of doing business in Jakarta.
Skilled Workforce
Jakarta boasts a skilled workforce with a significant portion possessing digital skills. While 14.5 percent of workers are digitally overskilled, indicating a robust talent pool, there is ongoing effort to enhance human capital. The government’s aim to add 58 million skilled workers by 2030, along with initiatives to allow foreign universities and polytechnics to establish campuses in Indonesia, underscores this commitment.
Business and Financial Hub
As Indonesia’s business and financial epicenter, Jakarta hosts numerous large companies, including multinational corporations. The city’s infrastructure, market potential, and business-friendly environment make it an ideal headquarters for many businesses. Jakarta’s role as a financial hub enhances its attractiveness for investment, offering extensive opportunities in finance and related sectors.
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Good Infrastructure
Why Do Business in Jakarta: 9 Great Advantages Jakarta’s infrastructure is well-developed, featuring an international airport, modern seaport, and an extensive toll road network. Continued investment in infrastructure, including plans for a high-speed railway network, underscores the city’s commitment to enhancing connectivity and supporting business operations.
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High Potential in Various Sectors
Jakarta offers high investment potential across diverse sectors such as technology, tourism, property, and finance. The city’s rapidly growing tourism sector, bolstered by increasing domestic and foreign tourists, presents lucrative opportunities. Additionally, the technology and property sectors are thriving, driven by urbanization and innovation.
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Cultural Diversity
Jakarta’s rich cultural and ethnic diversity creates a welcoming environment for multinational businesses. This diversity allows companies to adapt to varying market needs and fosters a multicultural workforce that can drive innovation and growth.
Ease of Investment
The Indonesian government has introduced various incentives to attract investment to Jakarta. The investment process has become more streamlined with the adoption of an online system, simplifying the application process and reducing bureaucratic hurdles. These measures enhance the ease of investing in Jakarta, making it an appealing choice for businesses.
Also read: How to Start a Business in Jakarta as a Foreigner
Jakarta stands out as a prime destination for investors seeking to tap into a growing market and boost their business profitability. The city’s strategic location, large consumer base, supportive government policies, skilled workforce, and robust infrastructure are key factors that contribute to its attractiveness. With ongoing economic development and favorable investment conditions, the benefits of doing business in Jakarta are set to increase, making it a promising investment destination.
Investors looking to capitalize on the dynamic Southeast Asian market should consider the numerous advantages Jakarta offers, from its strategic positioning to its diverse opportunities across various sectors. As a vibrant and evolving business hub, Jakarta is poised to continue its growth trajectory, offering substantial returns for those willing to invest in its future.
Also read: Foreign Company Registration in Jakarta: 2024 Guide
However, starting a business in Jakarta requires navigating several steps, including business registration, obtaining necessary licenses and permits, and adhering to local regulations. To streamline the process and ensure compliance, seeking professional assistance is recommended.
InvestinAsia specializes in helping with company registration in Jakarta. Our team of experienced experts can assist you with:
- Foreign company / PMA registration in Jakarta
- Jakarta representative office registration
- PT PMDN Set Up
- Virtual office setup in Jakarta
- Business registration number in Jakarta
- Jakarta Business Licenses
- Jakarta Trademark Registration
- Franchise License in Indonesia
If you are interested in starting a business in Jakarta, you can start by contacting us for FREE consultation.
