Indonesia, with its population of approximately 280 million people, presents a dynamic and rapidly developing market. This article provides an insider's perspective on the Indonesian market, highlighting key aspects that businesses should consider.
Demographics and Business Opportunities in Indonesia
Indonesia boasts a slightly higher male population, with the National Statistics Body (BPS) reporting 101 men for every 100 women. Importantly, 68.73% of the population falls within the productive age range of 15 - 64 years old, according to BPS.
New businesses are sprouting rapidly in Indonesia, with the population quick to adopt new technologies and trends. However, it's important to note that trends can also fade quickly if consumers perceive no ongoing benefit. Therefore, a robust marketing plan is crucial to retain customers and ensure continued patronage of your products and services.
The Digital Landscape in Indonesia
The Ministry of Communication and Informatics (Kominfo) reports that there are 66 million active social media users in Indonesia, primarily aged between 20-35 years old. Furthermore, the country has more than 167 million smartphone users. This digital savviness means that successful businesses can quickly go viral, leading to queues at your store or a surge in online orders.
Growing Sectors in the Indonesian Market
Several Small and Micro Enterprises (SMEs) are experiencing growth in Indonesia, particularly in the following sectors:
1. Food & Beverages business
This type of SME is indeed the most in demand because it never dies. Because culinary is one of the basic human needs. Although trends often change in a short time, many businesses are able to adjust.
Some examples are:
Healthy food catering : the Indonesian society (mostly those who are living in big cities) are getting more aware with the importance and health and food diets. This can be seen by the increasing amount of healthy catering services in Jakarta, Bogor, Bekasi and Tangerang area.
Café or Restaurant: the Indonesian society definitely love to be in groups and catch up with friends, family or event with clients. So, this line of business was growing very fast during pandemic, it goes a little bit slower now but there are still many opportunities to explore. It can never go wrong when it comes to food.
2. IT sector (application based business)
IT is a never ending business especially in this era. As one of the countries with fast growing number of population, Indonesia is often “used” as the “Guinea Pig” when it comes to technology adaptation and new product testing. Not only because of the number of population, but as explained earlier the people are very welcome with anything new and are willing to try. So, lately since the pandemic a lot of new IT services are surfacing, starting from transportation business line such as shuttle business to ride sharing business, online payment systems, aggregator applications for household service providers etc.
3. Outsourcing Companies
As many new businesses growing in the Indonesian market, these SMEs company do not have enough resources but are trying to be compliant. So many companies are outsourcing the nitty gritty part to third parties such as accounting, tax, legal services, website development, marketing and advertising services, even sales person until they grow enough to recruit and do everything themselves inhouse. Hence, there are many opportunities to offer in this sector. You may even come up with new business ideas as long as it helps these companies in their operations and make their lives easier.
With a huge prospective customers, are you ready to start your business in Indonesia?
Feel free to consult and check with us if your business is worth to challenge. email: contact@lglbee.com
WhatsApp: (+62) 859-3323-1567
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