Why Starting a Startup in Indonesia Makes Sense
Thinking of a startup in Indonesia? A huge young population, government support, low costs and room to pioneer make the market hard to ignore.
These days, developing countries are increasingly the preferred place to run a startup. Indonesia is a particularly interesting case thanks to a promising business environment backed by a steadily growing middle class and widespread internet use. Add to that the fact that more than half of the world's middle class will be in Asia by 2022. In business and investment, a growing middle class signals strong prospects and a bright future. Indonesia's population growth points to a sizable market. That makes now the perfect time to launch a startup business in Indonesia. Need more convincing? Read on!
A Large, Spread-Out Population
While three out of every eight people in the world come from India and China, Indonesia ranks as the fourth most populous country in the world, with 256 million people. The country is made up of 17,000 islands, and its most populous island is Java (fun fact: it is also the most populous island in the world). Most of the population is under 35. These young, active internet users open a wide window of opportunity for growth and development, with consumers driving the product life cycle. A larger population means more consumption. In developing countries, large populations have fueled consumption that drives economic growth at rates that Europe or other developed nations could not hope to match.
A Government Ready to Help
Another reason now is the right time to start a startup in Indonesia is that the government is laying the groundwork for it. Governments in emerging markets like Indonesia are actively helping build a startup-friendly business environment. Indonesia has even secured US$1 billion in funding to support local IT startups. With an estimated 50 million entrepreneurs in the country, this could be the next step in turning Indonesia into Southeast Asia's tech giant.
Lower Costs
Operating costs in developing countries are far more competitive. Office space rents for much less than in cities like London or Los Angeles, and labor costs are much lower as well.
Easier to Be a Pioneer
Your startup can easily become the first of its kind in many emerging markets. And because you face less competition, you have a good chance of turning a profit quickly or even becoming a major player in a short time.
It is easy to be very optimistic about the Indonesian market because the outstanding prospects are plain to see. Still not convinced that now is the right time to launch your startup in Indonesia?
