Doing Business in Indonesia: Market Entry, GTM Strategy & Growth Potential

The population of Indonesia is 287,886,783, and is growing at the rate of 0.74%. The GDP per capita, which represents the potential spending power of the people, is $18,973, measured on a purchasing power parity (PPP) basis to allow comparison with other countries.

60.04% of Indonesia’s population lives in urban areas. 63.91% of the population is of working age (15-59). 77.63% of the population has internet access and 22.06% has 5G mobile coverage. These factors are important for digital-first businesses to keep in mind.

The Accuracast International Growth Index ranks Indonesia #47 overall for market attractiveness. The country’s rank changed -3 places, representing a fall from last year’s position.

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Digital Market Maturity in Indonesia

The digital search demand score for Indonesia is 36.02.

Indonesia has around 230 million internet users and 80.5% internet penetration, creating one of the world’s largest online audiences. Search provides significant potential for high-intent acquisition, but the country’s enormous geographic and demographic diversity means localisation is important. Brands should consider differences between regions, cities, income groups and consumer behaviours rather than approaching Indonesia as one uniform market.

Go-To-Market Strategy Considerations for Indonesia

The purchasing power score for Indonesia is 60.4, and the country scores 71.13 for digital readiness.

The opportunity is driven primarily by scale and continued digital growth rather than uniformly high purchasing power. Internet users increased by around 18 million between October 2024 and October 2025, showing continued expansion of the online audience. This creates significant long-term potential, particularly for affordable, mobile-first propositions that can scale with growing digital adoption.

Financial & payment infrastructure

In terms of financial infrastructure, Indonesia scores 70.04.

Indonesia has a rapidly developing digital payment ecosystem, with e-wallets and mobile banking increasingly central to ecommerce. Platforms such as GoPay, OVO and DANA are important alongside cards and bank transfers. Supporting local payment methods is particularly important for mobile-first consumers and can help brands reduce checkout friction.

Regulatory & business setup friction

From a business expansion point of view, Indonesia scores 59.77 for regulatory complexity and legal restrictions. This is reverse-scored, meaning the higher the score, the easier it is to navigate local regulation.

Businesses need to consider data protection, ecommerce, tax and foreign investment requirements, with restrictions varying depending on the sector. Local compliance can be more complex than in EU markets, particularly for foreign-owned businesses. Regulatory requirements should therefore be established before launch rather than added after the commercial strategy is already in place.

The score of 39.86 indicates the costs and friction associated with setting up a business presence in Indonesia.

Indonesia can involve greater setup friction than European markets, particularly around foreign ownership, licensing and local compliance. The country’s size also makes operational infrastructure more complex. Cross-border ecommerce or working with a local partner can therefore provide a useful route for testing demand before committing to a full local operation.

Indonesia market attractiveness change

Compared to last year, the overall International Growth Index score for Indonesia has changed 1.42 points, causing the country to go -3 places from 2025, dropping to rank #47 in 2026.

Indonesia is one of the strongest markets for digital growth at scale. Internet users increased by around 18 million in one year, while social media user identities increased by approximately 37 million, or 26%. This continued expansion makes Indonesia particularly interesting for brands looking for markets where the digital audience is still growing rather than already reaching saturation.

Most Popular Social Media Platforms in Indonesia:

1. TikTok
2. Facebook
3. Instagram
4. WhatsApp
5. YouTube
6. X
7. Threads
8. LinkedIn
9. Snapchat

Standard Indonesian (Bahasa Indonesia) is the primary language of Indonesia. Additionally, many people also speak the regional languages: Javanese, spoken by about 31.8% of the population, mainly in Java, an Sundanese, spoken by 15.1% of the population, mainly in West Java and Banten. English is comfortably spoken by 10-15% of the population.

Bahasa Indonesia is the key language for all national marketing activity.

International Expansion Risks for Indonesia

While new market expansion can be exciting, it is important to also consider the risks when entering a market like Indonesia.

The biggest risks are market complexity, purchasing power differences and geographic scale. Indonesia spans thousands of islands and includes highly diverse consumer groups, making a single nationwide strategy unlikely to perform consistently. Brands should start with clearly defined audiences and locations before expanding more broadly.

Compare Indonesia to other countries