Market insight/Indonesia/Updated October 2026

Why you should invest in Indonesia.

Southeast Asia's largest economy combines a young market of almost 285 million people, steady growth above 5% a year, the world's largest nickel reserves and a fast-growing digital economy. Here is what makes it compelling, and what to know before you enter.

284.7mPopulation, 2025
4th largest in the world
5.11%GDP growth, 2025
$5,083GDP per capita, 2025
235mInternet users, 2026
81.7% of people
Rp1,931tnInvestment realised
in 2025
Rp901tnOf which foreign
direct investment
5.45%GDP growth
first half 2026
#1Nickel reserves
in the world
600m+Consumers across
ASEAN
01 · The case

Eight reasons to invest in Indonesia.

Indonesia's appeal rests on fundamentals that compound over decades: people, resources, location and a government focused on attracting investment.

  1. 01 / 08

    A large, young market

    Almost 285 million people, the fourth-largest population in the world, with a growing middle class and more than half living in cities.

  2. 02 / 08

    Steady growth

    GDP grew 5.11% in 2025 and 5.45% in the first half of 2026, driven by household spending, investment and manufacturing.

  3. 03 / 08

    Natural resources

    The world's largest nickel reserves (62 million tonnes), plus coal, copper, gas and palm oil. Nickel is central to EV batteries.

  4. 04 / 08

    Infrastructure push

    Ongoing investment in toll roads, ports, airports and the new capital Nusantara, with public-private partnerships open to investors.

  5. 05 / 08

    Digital economy

    235 million internet users in 2026, or 81.7% of the population, fuelling e-commerce, fintech, logistics and online services.

  6. 06 / 08

    Pro-investment reforms

    The Omnibus Law and the risk-based OSS licensing system opened more sectors to foreign ownership, with tax incentives in strategic sectors and special economic zones.

  7. 07 / 08

    Strategic location

    On the main shipping routes between the Indian and Pacific Oceans, and a gateway to ASEAN's 600 million-plus consumers.

  8. 08 / 08

    Stable fundamentals

    A large democracy with an independent central bank and a legal cap on the budget deficit, supporting long-term investor confidence.

02 · The numbers

An economy in motion.

Latest official figures from Statistics Indonesia (BPS), the Ministry of Investment (BKPM) and APJII.

Growth

GDP growth

Consistently above 5%, and faster again in 2026.

GDP growth: 2024 5.03%, 2025 5.11%, Q1 2026 5.61%, Q2 2026 5.29%2%4%6%5.03%2024full year5.11%2025full year5.61%Q1 2026y-o-y5.29%Q2 2026y-o-y
Full-year figures for 2024 and 2025; year-on-year quarterly growth for 2026. Source: BPS-Statistics Indonesia.
Capital

Investment realised in 2025

Rp1,931.2 trillion, 101% of the government's target.

Rp901tnForeign direct investment
≈Rp1,030tnDomestic investment
Source: Ministry of Investment and Downstreaming (BKPM), January 2026.
Digital

Internet users

Four in five Indonesians are now online.

2025
229.4m · 80.7%
2026
235.2m · 81.7%
Bars show the share of the population online. Source: APJII internet survey 2026.
03 · Where to look

Opportunity across the archipelago.

Indonesia is not one market but many. Each region has its own strengths, from finance in Jakarta to nickel in Sulawesi. DMS Group works from Bali and Surabaya.

Where the opportunities are in Indonesia A simplified map of Indonesia marking Medan for agriculture and palm oil, Jakarta for finance and headquarters, Surabaya for manufacturing and ports, Bali for tourism and services, Nusantara as the new capital, and Sulawesi for nickel and EV battery materials. DMS Group has offices in Bali and Surabaya. MedanPalm oil · agriculture JakartaFinance · HQs SurabayaManufacturing · ports BaliTourism · services NusantaraNew capital SulawesiNickel · EV batteries PapuaCopper · gold DMS Group officeKey growth hub
04 · Shared prosperity

An economy benefiting all Indonesians.

Growth in Indonesia has reached most of its people. In 1984, around three-quarters of Indonesians lived in extreme poverty. By 2023, fewer than 2% did.

That means roughly 120 million people in extreme poverty fell to around 5 million. For businesses, it means a far larger base of consumers, workers and suppliers than a generation ago.

120m → 5mPeople in extreme poverty, 1984 to 2023
Poverty

Share in extreme poverty

International poverty line of $2.15 a day.

Share of Indonesians in extreme poverty: about 74% in 1984, under 2% in 202325%50%75%~74%1984<2%2023
Source: Hannah Ritchie, Our World in Data, based on World Bank data.
05 · Before you invest

What to know first.

The opportunity is real, and so is the complexity. These are the points foreign investors most often underestimate.

  • i.
    Ownership rules

    Some sectors are open to 100% foreign ownership, while others are capped or reserved. The Positive Investment List sets the rules by business activity.

  • ii.
    Company set-up

    Foreign-owned companies (PT PMA) face minimum investment and capital requirements, and must license through the OSS system.

  • iii.
    Product registration

    Food, cosmetics, supplements and medicines need BPOM registration before they can be sold or imported.

  • iv.
    Local partners

    Relationships matter. The right local partner shortens set-up, opens distribution and avoids costly mistakes.

How DMS Group helps

We run our own businesses in Indonesia, so we know the market from the inside.

  • Joint ventures and local partnerships for foreign companies
  • Legal set-up, licensing and product registration
  • Market research, distribution and digital marketing
  • Teams in Bali and Surabaya, working in English, French and Indonesian
06 · FAQ

Common questions.

Short answers to what foreign investors ask us most. Every project is different, so talk to us for advice on yours.

Can a foreigner own a company in Indonesia?

Yes. Foreign investors set up a PT PMA, a limited liability company with foreign shareholders. Many sectors allow 100% foreign ownership, but some are limited or reserved for Indonesian investors, so check your business activity against the Positive Investment List first.

Why use a joint venture rather than a wholly owned company?

A joint venture with an established local partner gives you market knowledge, networks and operations from day one. It can also be the only route in sectors where foreign ownership is capped.

Which sectors are growing fastest?

Manufacturing, digital services and e-commerce, downstream mining and EV battery materials, renewable energy, healthcare, tourism and food and beverage all show strong demand.

How long does it take to start?

It depends on the sector and structure. Company registration through the OSS system can be quick, but licences, product registration and finding the right partner take longer. Contact us for a realistic timeline for your project.