Indonesia is not the same market it was even a few years ago. The nation’s young workforce, digital adoption, and infrastructure surge are setting the stage for a new chapter. But not all business industry types will rise equally. So, which sectors hold the clearest opportunity in 2025?
Read on to discover which business industry types should be on your strategic radar.
Why Should You Invest in Indonesia in 2025?
In 2025, despite GDP growth holding steady around 4.9% to 5%, Indonesia continues to attract strong foreign direct investment. Several forces are driving this momentum:
- Government support in key sectors (infrastructure, digital economy, and renewable energy)
- Simplified fiscal incentives and regulation to encourage business entry and expansion.
- Large youthful workforce and rising consumer demand add further strength to its investment appeal.
However, identifying the right business industry types is key. Success depends on aligning with the government’s priorities, sectors that support sustainable growth, technological innovation, and high-value manufacturing.
Top 10 Business Industry Types Thriving in Indonesia in 2025
As the economy modernizes and new trends reshape the market, a number of business industry types are breaking out as leaders for growth and innovation in 2025. Let’s explore the top industries worth considering:
1. E-Commerce Industry
Among Indonesia’s most dynamic business industry types, e-commerce offers one of the clearest strategic entry points for investors in 2025.
Expected to hit nearly USD 95 billion in 2025, the market shows no signs of slowing, with projections pointing to nearly USD 200 billion by 2030. Over 100 million smartphone users are driving a mobile-first shopping culture that increasingly spans the archipelago.
Yet the opportunity runs deeper than size alone. Platforms like Shopee and YouTube are transforming shopping into an interactive, engaging experience, while major online festivals continue to drive record sales volumes. Meanwhile, government-led improvements to digital infrastructure and payment ecosystems are enhancing market stability.
2. Logistics Industry
Set to grow 12.5% in 2025, this business industry is building on a strong foundation of 9.5% growth in 2024, with market size expected to surpass USD 15 billion by 2029. The logistics industry is scaling up rapidly to meet demand from booming e-commerce, expanding manufacturing output, and agricultural exports. At the same time, government investment and policy reform are improving infrastructure by using IoT and smart warehouses to reduce costs, improving operational efficiency, and opening the market to innovation.
3. Renewable Energy Industry
With solar potential exceeding 207 GW, hydropower resources over 75,000 MW, and holding 40% of the world’s geothermal reserves, Indonesia is rich in energy assets yet still in the early stages of developing them. Government targets aim for 76% of new power capacity additions by 2034 to come from renewables, with project pipelines growing steadily.
Moreover, recent regulations such as Ministerial Regulation No. 11/2024 and No. 5/2025 are simplifying procurement and improving project viability. Tax incentives and preferential tariffs make participation even more attractive to local and foreign investors alike.
For ESG-minded investors, this is a market where being early offers outsized advantages as project pipelines scale in the years ahead.
4. Automotive Industry
The automotive sector is one of the business industry types in Indonesia undergoing a strategic shift toward sustainable growth. BEV sales are set to double this year, and HEVs now hold a 6% share. Policy clarity is helping drive this growth. Incentives under Presidential Regulation No. 79/2023, alongside tax holidays and green financing support, is improving investment viability across the entire EV value chain.
At the same time, Indonesia’s automotive exports are gaining global traction, up 8.5% in March 2025. The government’s push to build an EV battery ecosystem, leveraging its rich nickel reserves, adds further depth to the opportunity.
5. Food & Beverage Manufacturing Industry
Food and beverage manufacturing is one of Indonesia’s most resilient business industry types. The sector already contributes over 7% to GDP and is projected to grow steadily. Consumer trends are driving innovation, from plant-based and functional foods to eco-friendly packaging and downstream seaweed products.
With packaged food and beverage sales surpassing USD 40 billion and sector growth forecast to remain stable, this is a market with strong fundamentals. Export growth in processed foods is accelerating, while government reforms are making it easier to access global markets and optimize supply chains.
6. Healthcare Industry
Healthcare is now one of Indonesia’s most dynamic business industry types. Rising consumer expectations, driven by a growing middle class and a universal healthcare program covering more than 200 million people, are prompting hospitals and clinics to upgrade services and technology
With IDR 218.5 trillion allocated for 2025, the government is expanding public services while opening space for private innovation. Foreign investors can now own up to 67% of private hospitals.
This is a market where opportunities extend across infrastructure, pharmaceuticals, biotech, and a USD 2.37 billion medical devices segment. Early entrants have a real chance to shape a sector still building toward its full potential.
7. Pharmaceutical Industry
Affordable healthcare remains a priority in Indonesia and has become one of the fastest growing business industry types seeing strategic investment. With 90% of raw materials still imported, the government is accelerating efforts to strengthen domestic production and safeguard supply chains.
Beyond generics, there is strong potential in traditional herbal medicines and health supplements, segments benefiting from both consumer trends and official support. Investors have a unique opportunity to build long-term value in a sector where local resilience and innovation are now top priorities.
Read More: How Subang Smartpolitan Supports the Future of Pharmaceutical Manufacturing
8. Agriculture Industry
Agriculture is one of Indonesia’s largest business industry types and is undergoing steady transformation. Over 60% of the population remains engaged in the sector, but modernization is now a national priority.
Government programs are helping upgrade the entire value chain through incentives including subsidies for seeds and fertilizers, tax benefits for agricultural enterprises, and significant investment in rural logistics. Moreover, efforts to boost domestic food production and stabilize prices are opening new investment channels.
9. Financial Technology (Fintech) Industry
Fintech is one of the business industry types in Indonesia where the timing for investment could not be better. Digital payment volumes are surging toward USD 20 billion this year, driven by widespread QRIS adoption and platforms like GoPay, OVO, and Dana.
Beyond payments, peer-to-peer lending and crowdfunding platforms such as KoinWorks and Investree are driving financial inclusion, particularly for MSMEs and underserved individuals. Importantly, Indonesia’s regulators are fostering a balanced environment. Strong frameworks from the Financial Services Authority (OJK) and Bank Indonesia support innovation while safeguarding consumers. Now is the time for investors ready to tap into this high-growth sector.
10. Data Center Industry
Indonesia’s data center sector is attracting investors by its rising demand from e-commerce, banking, and AI-driven companies. Over 80 colocation facilities are already active, with key growth hubs in Jakarta and Batam, making Indonesia a regional leader. The market, valued at USD 2.39 billion in 2024, is projected to reach USD 3.79 billion by 2030. The government’s focus on sustainability and advanced cooling technologies to improve efficiency and manage the growing power needs of AI applications make it an attractive investment opportunity.
Where to Set Up Your Business for Long-Term Growth in Indonesia?
Identifying Indonesia’s thriving business industry types is just the beginning. Turning market opportunity into sustainable growth requires the right environment. Subang Smartpolitan is built for this future.
Strategically connected to the crossroad of major transport routes such as Patimban Seaport, Kertajati International Airport, and toll networks, Subang Smartpolitan offers a complete 5G-ready industrial ecosystem. It is also supported by advanced infrastructure, smart grid utilities, sustainable systems, and IoT integration for tomorrow’s demands.
Global tech like BYD have already recognized its advantages. Explore how Subang Smartpolitan can support your next strategic investment. Visit our website.
FAQ Section
- Can foreign investors fully own businesses in Indonesia?
Yes, many sectors allow 100% foreign ownership, especially in manufacturing, e-commerce, IT services, and tourism. However, some sectors such as logistics, transportation, and media have foreign ownership limits or require local partners, as outlined in the Investment List (Presidential Regulation No. 10/2021, as amended)
- What sectors are prioritized for investment incentives?
Priority sectors include manufacturing, renewable energy, digital economy, infrastructure, and downstream mining. These sectors receive tax holidays, allowances, and streamlined licensing to attract investors
- Are there new ownership disclosure requirements for foreign investors?
Yes, under Minister of Law and Human Rights Regulation No. 2 of 2025, companies must regularly disclose beneficial ownership information, including ultimate controllers, with annual updates and whenever ownership changes occur.
- How does the regulatory environment support fintech and digital businesses?
Indonesia has streamlined licensing and regulatory frameworks for fintech, digital payments, and e-commerce, encouraging innovation while ensuring consumer protection. Many digital sectors allow 100% foreign ownership, facilitating investment.
- What incentives are available for foreign investors in priority sectors?
The government offers tax holidays, tax allowances, import duty exemptions, and streamlined licensing for investments in priority sectors such as manufacturing, renewable energy, digital economy, and infrastructure.