Semarang, the capital city of Central Java, is emerging as a prime destination for those looking to start a successful business. With expanding infrastructure and a proactive local government, the town offers fertile ground for entrepreneurs.
Whether starting a business in Semarang or expanding into the region, this guide will spotlight why it might be the smart choice today.
Why should you invest in Semarang?
Below are key reasons why starting a business in Semarang today makes strong business sense
Strategic Location & Infrastructure
- Located in a key spot on Java Island.
- New Semarang–Demak Toll Road boosts connectivity and reduces transport costs.
- Close to major ports and highways, ideal for logistics.
Fast-Growing Investment
- Central Java attracted IDR 15.2 trillion in early 2024, up 19% from 2023.
- Created over 78,000 jobs, proving a strong business climate.
- Investment incentives continue to encourage both domestic and foreign investors to choose Semarang.
Government Support & Ease of Doing Business
- Simple business registration with fast licensing.
- Reduced regulations and support for priority sectors like renewable energy.
- Ongoing initiatives provide additional tax benefits, fostering an even more attractive investment environment.
Dynamic SME Ecosystem & Skilled Workforce
- Nearly 600 new SMEs since 2020.
- Training programs enhance worker skills, providing quality talent.
- Networking events and mentorship opportunities strengthen the local business community.
Top 5 business opportunities in Semarang
Looking to start a business in Semarang? Here are the most promising sectors for 2025, carefully selected based on growth and market potential:
1. Manufacturing & Industrial Estates
Semarang is increasingly attractive for light manufacturing due to its lower labor costs and excellent logistics. The Kendal Industrial Estate is a prime example of integrated industrial infrastructure and support from Central Java’s development plans. With production hubs exporting to global markets, this sector is ideal for foreign and domestic investors.
Read more: How to establish a medical device manufacturing company in East Java
2. Food & Beverage (F&B)
Indonesia’s expanding consumer base favors F&B innovations. National trends show a strong demand for local brands, healthy foods, and cafés. Establishments offering halal-certified, local, and modern dining have high potential in Semarang’s growing urban districts.
Read more: Understanding the dynamics of F&B industry in Semarang
3. Textile & Apparel Manufacturing
Textile production remains a core industry in Semarang. The broader Indonesian textile market is set to hit US$18.4 billion by 2028, growing at over 5.5% annually.
Moreover, shifting toward a more sustainable lifestyle, eco-friendly fashion offers a competitive edge and revives local facilities.
4. Renewable Energy & Green Infrastructure
Energy transition opens doors in solar, hydropower, and green industrial zones, inviting countries like the UAE and China to invest in clean energy projects across Indonesia. Semarang’s local push for green manufacturing and industrial park developments will further strengthen this sector.
5. Logistics & Trade Services
As a trade and service hub, Semarang’s logistics demand is driven by its strategic port and industrial landscape. With the metropolitan region’s GDP exceeding US$29.5 billion in 2023, services like warehousing, cold storage, freight forwarding, and digital B2B platforms are poised to grow further.
Ready to start your business in Semarang?
Semarang has great potential for investors and entrepreneurs. But to begin, you need to set up your company properly with the help of a trusted partner.
InCorp Indonesia (an Ascentium Company) can make the business incorporation process in Semarang easy and fast for local and foreign investors. We offer:
- Company Registration: We help you register your company, from handling all paperwork to approvals.
- Business License: Our expert team will handle the requirements and ensure your business meets all government rules.
Contact us and start your business journey in Semarang with our expert support today.
Frequently Ask Questions
Can a foreigner register a company in Indonesia?
Yes. Foreign individuals or entities can establish a foreign‑owned limited liability company (PT PMA), subject to sector-specific foreign ownership restrictions defined by Indonesia’s Positive Investment List
What are the main legal entity options in Indonesia?
PT (Perseroan Terbatas): Local company structure requiring Indonesian shareholders. PT PMA: Foreign‑owned limited company (up to 100% foreign investment, depending on sector). Representative Office (KPPA / KP3A): For non‐revenue, promotional or liaison activities only
How long does the registration process take?
Typically a few weeks to a few months, depending on document completeness, legal structure, capital requirements and government processing times
What is the minimum capital requirement for a PT PMA?
The authorized capital must be at least IDR 10 billion, with IDR 10 billion paid up or committed via shareholder pledge. Some sources note total investment planning up to IDR 110 billion, depending on the sector
Get in touch with us.
What you'll get
A prompt response to your inquiry
Knowledge for doing business from local experts
Ongoing support for your business
Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
