Published date: 26/11/2021

Setting up a company in other countries could be easier if we know the background of the country. If you are planning to start up a company in Indonesia, here are the overview of Indonesia that we would like to share with you.

Location, Population and Climate

Indonesia is the largest archipelago in the world and located in a strategic location along major sea lanes connecting East Asia, South Asia and Oceania.

At the midyear of 2020, Indonesia’s population is estimated at 273,523,615 people according to UN data which is equivalent to 3.51% of the total world population and ranks no.4 in the list of countries (and dependencies) by population.

Indonesia has an almost entirely tropical climate with average temperature between 23°C – 28°C. The area’s relative humidity is quite high, which ranges between 70% – 90%.

Multicultural Society

Indonesia contains a rich variety of cultures due to its sheer vastness. Indonesia’s capital city and the center of national politics and economics, Jakarta, is the melting pot of many such cultures. The distance from the area of cultural origin, has resulted in a fading of some cultural features (especially for those families that have been living in Jakarta for multiple generations), but ‘enriched’ by a distinct urban culture.

Indonesian Lifestyle

Indonesia is a very unique country where each island has its own culture. The people are coming from many ethnicities and there are various religions. This diversity makes Indonesia have a very complex lifestyle.

People who live in this country can be categorized into two large groups even though there are so many kinds of Indonesian Lifestyle.

  1. People lives in Rural areas

Indonesia has very big rural areas. There are certain areas are very remote and can’t be accessed easily. The people who live in rural areas not only work as a farmer, some people might also have several side jobs such as fisherman or breeders. They are considered to have better kinship compared to people who live in urban areas.

  1. People lives in Urban areas (City)

The people who live in the city are commonly known as urban communities. The urban community has several characteristics of social live that are different with the people who live in urban areas, such as religious aspect, prefers individualistic lifestyle, bigger chance of getting a job and etc.


In terms of economy aspect, Indonesia’s GDP is projected to trend around 1.150.00 USD Billion in 2021 and 1.270.00 USD Billion in 2022. Indonesia has huge workforce of 137 million people.

In Indonesia, Japanese business is very welcome. The Japanese Foreign Minister, Motegi Toshimitsu agreed to support the Indonesian government’s priorities in the economic field and to improve Indonesia’s human resources. In addition to that, he and the Indonesian foreign minister agreed to strengthen cooperation in the development of the Integrated Maritime and Fisheries Centers (SKPT) on Indonesia’s six outermost islands. The Indonesian Foreign Minister are welcomed Japan’s interest in the construction of the new capital city with a smart metropolis concept and invest in tropical fruit sanitation technology. Japan is also committed to continuously expanding its investment in Indonesia, support industrial modernization, and Indonesia’s desire to become a re-exporting hub for Japanese manufacturing products in the region.

We hope that the overview we shared, you may have a better view about Indonesia. In OCS, we provide company incorporation, overseas business administration, overseas working visa services and etc. You may visit our website for more info.