Indonesia is amongst the top five emerging economies in Asia. During the last decade or two, Indonesia has been accumulating a lot of foreign investments to finance its growth as well as domestic infrastructure.
This Southeast Asian nation has not only plenty of natural resources, but also a copious pool of young & talented professionals.
Underlying Indonesia’s stable & thriving economy, there is political stability in the country.
Another factor for setting up a business in Indonesia is that more than half of its population lives in urban areas. Thus, they have greater purchasing power
Before you scratch your head on what kind of business you must start in Indonesia, here, we enlist some profitable SME ideas to launch in Indonesia. Let’s find out.
1. Startup Accelerators & Incubators
Indonesia has attracted many startups in Asia and it, thus, has an established startup community.
With each passing year, startups in Indonesia are soaring. At present, it houses about 900 to 2,000 startups.
Yet, the majority of these startups are still in their vulnerable phase (nascent/adolescent stages). A recent study by Catcha Group revealed, approx 90% of these startups are valued less than $10 million.
Yes, from the above, we can deduce that the Indonesian people have the passion and confidence to translate their business ideas into reality.
But, they need support in accomplishing their big goals. So, programmes such as accelerators and incubators have a significant role to play in growth of the startups in the country.
2. International Business Finder Service
A marketplace is an old concept now, but keeping Indonesia’s export scenario in mind, investing in an SME that offers to act as a business finder for domestic businesses and foreign procurers is quite a thing. The only requisite is that you need to be sound with the export rules.
The service acts as a marketplace between buyers & sellers and earns profits as commission for connecting the two parties, just like any other product based marketplace.
With exports like palm oil, cars, coconut oil, rubber, etc, there is much to profit from because the demand for such domestic production remains high, but it is difficult for buyers from other countries to find such sellers and seal the deal.
Convening this liaising on the Internet is easy for buyers, profitable for the sellers, and it makes for a scalable SME idea for you.
3. Travel Consultancy Firm
Indonesia is amongst the top tourist countries in Asia. Each year it welcomes hundreds and thousands of travellers from all parts of the world. Thus, starting as a travel agent or launching a tourist consultancy firm is the safest bet.
You can start by providing Indoesnian travel packages to foreign tourists, especially from other Aisan countries.
To succeed, you need to have established links with local hotels and restaurants and help your clients get good deals & discounts.
4. Online Retail Marketplace
Starting an online retail marketplace is a dependable small business idea in Indonesia. The population of Indonesia is enormous, 4th in the world, and a massive proportion of them have a smartphone.
Global eCommerce giants such as AliExpress and Amazon have a dominant foot hold in the country in particular and the word in general.
While that sector seems to have no place for newbies, the fact is that there are a remarkable number of small marketplaces in food, local fashion, handmade crafts, household products, etc, something that the audience happens to trust more by the virtue of them being local.
That, there is one option. Another is to go the logistical and tech support way. The fast-growing online retail sector of Indonesia needs it and it is only clever to provide it.
Besides online marketplaces, on-demand services such as finance and health have also seen a progressive growth, thus unlocking new doors of possibilities. If you have previous experience in these industries, it is worth a try investing in these.
Everything does start with an idea but it does take a lot to move from an idea to a concrete investment. Compared to other investment hubs in Asia, setting up a company in Indonesia can often be a rather complicated affair. Jumping headlong without expert advice is not such a great idea.
The best of professionals will not only provide you with valuable insights to the Indoesnia market, especially if you are a foreigner but also ease the paperwork for you.