Indonesia is one of Southeast Asia’s most promising destinations for business expansion, thanks to its vast population, growing middle class, and strategic location. But with so many cities offering different advantages, the big question is:
 Where should you open your office – Jakarta, Bali, Surabaya, or another city?

In this blog, we explore the pros and cons of opening an office in Jakarta, Bali, Surabaya, and other key locations — helping you decide which city aligns best with your business goals, operations, and personal lifestyle.

1. Bali – The Creative and Lifestyle Destination

Pros:

• Globally known for its natural beauty, relaxed lifestyle, and international community.
• Ideal for creative industries, wellness brands, consultants, and remote teams.
• Access to vibrant coworking spaces and startup ecosystems (e.g., Canggu, Ubud).
• A healthy lifestyle with organic food, fitness culture, and private healthcare options.
  
  

Cons:

• Office rentals can be higher than Jakarta, especially in premium tourist areas.
• Infrastructure varies — reliable internet and electricity depend on location.
• Fewer formal business institutions and professional networks.
• Tourism-dependent economy may not suit all business models.

Best for: Creative agencies, digital businesses, wellness professionals, freelancers.

2. Surabaya – The Industrial and Trade Hub

Pros:

• Capital of East Java and Indonesia’s second-largest city.
• Strong logistics and port access — great for import/export operations.
• Lower rental and staff costs compared to Jakarta and Bali.
• Easier access to warehousing, raw materials, and local markets.

Cons:

• Limited international school and expat living options.
• Not as developed for service-based or creative industries.
• Smaller international business network.

Best for: Trading companies, logistics, manufacturing, and warehousing.

3. Jakarta – The Business and Government Epicenter

Pros:

• All key government ministries, departments, and regulatory offices are located here.
  
• Home to all foreign embassies — ideal for visas, permits, and international business.
• Largest professional talent pool and service ecosystem in Indonesia.
• Modern infrastructure, including business districts, hospitals, and global banks.
• A wide range of residential areas: from apartments in South Jakarta to suburbs like BSD Sentul, and Bekasi.
• Office space is often more affordable than Bali’s high-demand zones, depending on location.
  
  

Cons:

• Traffic and congestion in central areas, though mitigated by hybrid work setups.
• Cost of living is slightly higher than smaller cities, but with more options and flexibility.

Best for: Import/export HQs, fintech, legal services, e-commerce, investment offices.

Other Cities to Consider

• Bandung – Creative, tech-savvy city near Jakarta. Ideal for back-end teams or design studios.
• Medan – Strategic trade hub for Sumatra and neighboring Malaysia, but less relevant for service-based businesses.
• Batam – A free-trade zone near Singapore, ideal for cross-border logistics, warehousing, and manufacturing. Offers tax incentives and decent infrastructure for trade-focused companies.
  
  

Should Your Office Be Near Your Residence?

Another important factor in your decision is where you plan to live long term. While legally it’s allowed to register your office in one province and reside in another, having your office near your residence is often more practical — especially for daily operations, staff management, and visa-related formalities.

For example, if you plan to live in BSD or South Jakarta, having your office within the greater Jakarta area can make your professional and personal life smoother. If you live in Bali or Batam, you might consider having your office locally to minimize travel.

Consider Special Economic Zones (SEZs)

Indonesia offers Special Economic Zones (SEZs) to attract investment in priority sectors like manufacturing, logistics, tourism, and digital services. These zones provide benefits such as tax holidays, import duty exemptions, streamlined licensing, and easier land access. If your business falls under eligible industries, operating within or near an SEZ could significantly reduce your setup and operational costs.

Here are some key SEZs you might want to explore:

• Batam SEZ – Near Singapore, ideal for manufacturing, logistics, and electronics.
• Kendal SEZ (Central Java) – A joint Indonesia-Singapore project focused on industrial manufacturing.
• Morowali SEZ (Central Sulawesi) – Known for nickel and metal-based industries.
• Mandalika SEZ (Lombok) – A tourism-focused SEZ with growing infrastructure.
• Tanjung Lesung SEZ (Banten) – Another tourism SEZ within reach of Jakarta.
• Bitung SEZ (North Sulawesi) – Focused on fisheries, agro-industry, and logistics.
• Galang Batang SEZ (Riau Islands) – Mining and mineral processing hub.

Before finalizing your office location, it’s a good idea to assess if one of these SEZs aligns with your business goals or whether being nearby could offer strategic value.

Choosing the Right City: What to Consider

Before you decide, ask yourself:

• What is the nature of your business – service, trade, manufacturing, or digital?
• Do you need to regularly visit embassies, banks, or government offices?
• Where do you want to live and raise your family long term?
• What’s your monthly budget for rent, staff, and utilities?
• Do you need access to international schools, hospitals, or coworking communities?

Conclusion: Match Your Business Model with the Right Location

Indonesia offers many vibrant cities to choose from. Bali offers lifestyle and creativity. Surabaya offers logistics and trade efficiency. Batam offers proximity to Singapore and tax perks. But if you want to be at the heart of policy, commerce, global connectivity, and professional resources — Jakarta remains the most complete and strategic option for many investors.

Choose a city that not only supports your business goals but also aligns with your preferred way of living.

Need help setting up your business in Indonesia?
 At Overseas Business Consultancy (OBC), we assist foreign investors with complete company setup (PT PMA), investor visas (KITAS), and relocation planning.