Number of Japanese Companies Expanding into Indonesia and Characteristics of Major Regions
- Publish
- 2022/08/11
- Update
- 2025/06/07
- You can read this article in 9minutes
According to a 2019 survey by JETRO, the number of Japanese companies that have expanded into Indonesia (including those with local subsidiaries, branches, or representative offices) is 1,489. Compared to approximately 13,600 Japanese companies operating in China, this figure is about one-tenth.
Considering the recent political instability in China and issues surrounding Taiwan, it is anticipated that the number of Japanese companies expanding into Indonesia will continue to increase in the future.
In this context, this article will explain:
Which regions the currently operating companies have entered,
What characteristics these regions possess,
And whether there are notable industry-specific trends among the Japanese companies that have expanded into Indonesia.
● Domestic corporation ⮕ Foreign companies cannot be shareholders
Are you curious about how other companies are expanding into Indonesia?
Details of Japanese Companies Operating in Indonesia
Main Industries of Japanese Companies in Indonesia
Manufacturing Sector: 871 Companies
(Partial listing below)
| Industry | Number of Companies |
|---|---|
| Parts for transportation equipment (automobiles/motorcycles) | 218 |
| Electrical machinery / electronic devices (including parts) | 69 |
| Metal products (including plating) | 61 |
| Plastic products | 53 |
| Chemical / petroleum products | 53 |
| Food / agricultural and marine processed products | 47 |
Non-Manufacturing Sector: 618 Companies
(Partial listing below)
| Industry | Number of Companies |
|---|---|
| Wholesale / Retail (including trading companies) | 247 |
| Construction / Plant engineering | 75 |
| Transportation / Warehousing | 71 |
| Business-related services (legal, tax, consulting, recruitment) | 36 |
| Finance / Insurance | 34 |
Source: JETRO “List of Japanese Companies Operating in Indonesia (January 2020)”
Precautions when conducting an on-site inspection in Indonesia
Some visitors consider, "My primary purpose is to conduct maintenance work at the factory, but the visa application process appears cumbersome. I will simply enter on a Visa on Arrival (VOA) and carry out the work discreetly."
However, there have been numerous cases where entering without the appropriate visa for the intended activities has resulted in significant legal and operational issues. It is therefore strongly advised to obtain the correct visa prior to travel.
Here are the types of visas and their purposes.
Characteristics of Indonesian Regions Where Japanese Companies Have Expanded
The breakdown of the 1,489 Japanese companies operating in Indonesia by location is shown in the graph below.
Source: JETRO “List of Japanese Companies Operating in Indonesia (January 2020)”
Among the six main regions where Japanese companies have established a presence, all are located on Java Island, with the exception of Batam Island and Bintan Island, which lie to the south of Singapore.
Below, we will introduce the types of industries represented by companies in each region, particularly focusing on the Jakarta Special Capital Region, West Java Province, and Banten Province—areas with the highest number of Japanese company expansions—as well as the unique characteristics of each of these regions.
Basic Data on Regions with High Concentrations of Japanese Companies
The Jakarta Special Capital Region, West Java Province, and Banten Province are all located in the western part of Java Island and are adjacent to one another.
First, here is a brief overview of Indonesia’s administrative divisions as a prerequisite to understanding these regions.
The highest level of administrative division in Indonesia is the “province” (as of 2022, there are 34 provinces including the Jakarta Special Capital Region and the Special Region of Yogyakarta). Below provinces are “regencies” or “cities.” Unlike Japan, where cities are subdivisions of prefectures, in Indonesia, regencies (kabupaten) and cities (kota) are administrative divisions at the same level; the difference lies only in the name. For example, “Tangerang Regency” and “Tangerang City” are neighboring but separate regions.
When referring to an “Indonesian city” in Japanese, the classification can vary depending on the context, which makes comparisons difficult. Generally, Jakarta and Yogyakarta are treated as single cities, while other areas are often referred to as “cities” at the regency or municipal level.
When considering company establishment, it is advisable to select the location based on the characteristics of each region. If you contact us in advance, PT. TRICRUISE MARKETING INDONESIA can share expert advice based on our local knowledge.
Jakarta Special Capital Region
Jakarta has a population of approximately 10 million and is commonly referred to as “Indonesia’s largest city.” As the political and economic center of the country, it faces challenges such as chronic traffic congestion and air pollution due to its high population density. In response, the Indonesian government has announced a capital relocation project to Kalimantan Island, with plans to begin the move in 2024.
West Java Province
West Java Province is the most populous province in Indonesia, with a total population of approximately 48 million. Areas near Jakarta are home to some of the country’s largest urban populations, and minimum wages, average salaries, and rental housing prices are at levels similar to those in Jakarta.
In addition, major industrial zones such as Cikarang and Karawang—where many Japanese companies have expanded—are located in West Java Province. Cikarang, in particular, situated about 50 kilometers east of Jakarta, serves as a hub for Japanese manufacturing, offering access to Japanese supermarkets, Japanese restaurants, and even a Japanese school.
On the other hand, West Java is a vast province with a total area of approximately 35,000 km², comparable to the size of Kyushu in Japan. As a result, the atmosphere varies significantly depending on the location. The farther one moves from the metropolitan area, the more the landscape shifts into tranquil countryside with mountains and farmland.
Banten Province
Banten Province, with a population of approximately 12 million, was separated from West Java Province in the year 2000. Located to the west of Jakarta, Banten includes the major metropolitan area of Tangerang (Tangerang Regency, Tangerang City, and South Tangerang City), which is the second-largest urban area in the capital region after Jakarta. Soekarno-Hatta International Airport, the main air gateway to Java Island, is also located in Tangerang.
The Greater Jakarta Metropolitan Area “Jabodetabek”
Jakarta and the cities that border it form one of the world’s largest metropolitan areas, commonly known as “Jabodetabek.” This name is an acronym formed from the initials of the five major urban areas centered around Jakarta:
- Jakarta (Jakarta)
- Bogor (Bogor Regency / Bogor City)
- Depok (Depok City)
- Tangerang (Tangerang Regency / Tangerang City / South Tangerang City)
- Bekasi (Bekasi Regency / Bekasi City)
Of these, Bogor, Depok, and Bekasi are part of West Java Province, while Tangerang belongs to Banten Province.
Even within Indonesia, economic conditions and user needs vary greatly by region. Therefore, if your company is considering expansion, conducting surveys—such as questionnaires targeting potential users who closely match your target customer base—can enhance strategic clarity and is highly recommended.
For those seeking information on establishing a corporation
(You can click to go to the article you want to read.)
Number of Japanese Companies by Industry in the Three Key Regions
Manufacturing Sector
| Industry | Jakarta | West Java | Banten |
|---|---|---|---|
| Parts for transportation equipment (automobiles / motorcycles) | 13 | 184 | 10 |
| Electrical machinery / electronic devices (including parts) | 10 | 45 | 1 |
| Metal products (including plating) | 7 | 43 | 5 |
| Plastic products | 6 | 40 | 5 |
| Chemical / petroleum products | 22 | 26 | 2 |
| Food / agricultural and marine processed products | 22 | 14 | 1 |
| Steel (including castings and forgings) | 9 | 20 | 3 |
| General-purpose / production machinery (including molds / machine tools) | 5 | 27 | — |
| Textiles (spinning / weaving / synthetic fibers) | 8 | 16 | 2 |
| Rubber products | 1 | 13 | 4 |
| Apparel / textile products | 3 | 12 | 1 |
| Transportation equipment (automobiles / motorcycles) | 7 | 8 | 1 |
| Wood / wood products | — | 5 | — |
| Non-ferrous metals | 2 | 8 | 2 |
| Industrial equipment (office / analytical / medical devices) | 1 | 8 | 2 |
| Pharmaceuticals | 8 | — | 1 |
| Furniture / interior products | 3 | 3 | — |
| Paper / pulp | 2 | 5 | 1 |
| Electricity / gas / heat supply / water | 6 | — | 1 |
| Ceramics / stone and soil | 2 | 4 | — |
| Mining | 2 | — | — |
| Parts for transportation equipment (railway / ship / aircraft / freight) | — | 3 | — |
| Other manufacturing industries | 39 | 59 | 6 |
Non-Manufacturing Sector
| Industry | Jakarta | West Java | Banten |
|---|---|---|---|
| Wholesale / Retail (including trading companies) | 184 | 56 | 5 |
| Construction / Plant engineering | 66 | 7 | 1 |
| Transportation / Warehousing | 45 | 18 | 6 |
| Business-related services (legal, tax, consulting, recruitment) | 34 | 2 | — |
| Finance / Insurance | 34 | — | — |
| Information and Communications (including software) | 28 | 1 | — |
| Real estate | 10 | 10 | 1 |
| Non-bank financial institutions (insurance, securities, credit cards, leasing, etc.) | 5 | — | — |
| Professional / Technical services | — | 7 | — |
| Hotels / Travel / Food services | — | 4 | — |
| Education | 4 | 1 | 2 |
| Entertainment / Lifestyle services | 3 | — | — |
| Medical / Welfare | 2 | — | — |
| Printing / Publishing | 1 | 3 | — |
| Other service industries | 38 | 3 | 2 |
Characteristics of Japanese Companies in the Three Key Regions by Industry
Jakarta Special Capital Region
Of the 659 Japanese companies operating in Jakarta, approximately 73%—or 481 companies—are in the non-manufacturing sector. The largest segment is wholesale/retail with 184 companies, followed by construction/plant engineering, and transportation/warehousing. Jakarta is also home to many companies in industries not present in West Java or Banten, such as finance/insurance, non-bank financial services, and entertainment/lifestyle services.
West Java and Banten Provinces
In contrast to Jakarta, which has a high concentration of non-manufacturing companies, West Java—home to major industrial zones—is dominated by manufacturing firms, accounting for approximately 83% of Japanese companies in the province. Across West Java, the most common industry is parts for transportation equipment (184 companies), followed by wholesale/retail, electrical machinery/electronic devices, and metal products.
Similarly, in Banten Province, around 74% of Japanese companies are engaged in manufacturing, primarily in transportation equipment parts.
-
Domestic corporation
Recruitment Agency
We set up a domestic capital company in Indonesia using the name of a former employee from Japan’s Specified Skilled Worker program. At first, communication was smooth, but once the business became profitable, they claimed ownership, seized bank accounts and contracts, and disrupted client relations. A contract was in place but ineffective, leaving us to regret relying solely on trust.
-
Foreign-owned corporation
Machinery Manufacturer
We hired a local consulting firm to set up our foreign-owned company in Indonesia, but responses were slow and explanations kept changing. Repeated requests for extra documents and shifting requirements disrupted our schedule, and the process took nearly a year, delaying our business launch. We learned the importance of clearly defining project management and responsibilities in the contract.
Well-Known Japanese Companies in Indonesia
Honda
Image Source: PT. Astra Honda Motor
In Indonesia, Japanese products are most commonly associated with motorcycles. Honda, along with Yamaha and Suzuki, entered the Indonesian market in the 1970s and has since become a familiar presence among the Indonesian population. Even today, some older people in rural areas refer to motorcycles simply as “Honda.” The company is now also well known as a car manufacturer.
Many Indonesians rely on motorcycles for daily transportation, and repair shops—known locally as bengkel—are found throughout the country. Among these, official Honda bengkel locations are especially popular for offering professional and reliable service.
Japan-based companies virtually dominate the motorcycle and automobile market in Indonesia, which helps explain why approximately 15% of Japanese firms operating in the country are manufacturers of transportation equipment parts.
Glico
Image Source: Glico Indonesia
Japanese snacks are widely available in Indonesian convenience stores, and many of them are familiar to those who have visited Japan. Indonesians have a strong preference for chocolate, making snacks like “Koala’s March” and “KitKat” staple items that are easy to find anywhere.
Among chocolate snacks, one cannot forget Pocky. In addition to popular Japanese flavors such as chocolate, strawberry, and matcha, there are also regional limited editions like watermelon and coconut & brown sugar. The image above shows the coconut & brown sugar flavor, which highlights the theme of “Indonesia-exclusive” and “locally inspired taste.”
An interview article with the team at Glico, a brand beloved by many Indonesians, is available online. It provides valuable insights on product development geared toward increasingly health-conscious Indonesian consumers, as well as marketing strategies involving influencers.
Yoshinoya
Image Source: YOSHINOYA Indonesia
Japanese cuisine has long been popular in Indonesia. In recent years, local ramen shops, sushi restaurants, and takoyaki stands have become a common sight. Japanese restaurant chains such as Marugame Seimen and Genki Sushi have also been expanding their presence.
Yoshinoya, which has the second-largest number of restaurant outlets in Japan, operates over 120 locations in Indonesia. Promoting itself as offering “Japan’s No.1 Gyudon (beef bowl),” Yoshinoya serves not only its signature beef bowls, but also a variety of donburi dishes including grilled meat and teriyaki chicken bowls.
Although the menu is more limited than in Japan, it is tailored to local tastes by offering various deep-fried side dishes. Additionally, unlimited refills of green tea are available for a fee.
Regarding the food industry, PT. TRICRUISE MARKETING INDONESIA has established a product development system within Indonesia. This allows restaurant companies to co-develop signature dishes with us and conduct pilot sales in Jakarta as a form of test marketing before full-scale market entry.
Establishing a foreign-owned company in Indonesia requires a minimum capital investment of IDR 10 billion (approximately USD 600,000 at a rate of IDR 16,000/USD)¹. However, using the above test marketing framework, businesses can evaluate market feasibility without needing to commit this level of capital in advance. Interested companies are welcome to contact us.
¹ Exchange rate as of June 2025: 1 USD ≈ 16,000 IDR
UNIQLO (Fast Retailing)
Image Source: Uniqlo Indonesia
When it comes to Japanese apparel brands in Indonesia, UNIQLO stands out. As of April 2022, UNIQLO operated 49 stores across 20 cities, making it a common sight in large shopping malls in urban areas. Although prices are higher compared to UNIQLO stores in Japan, the brand is highly trusted for its quality.
The popularity of UNIQLO is evidenced by the emergence of imitation products mimicking its designs—a testament to its strong brand recognition.
Shiseido
Image Source: SHISEIDO Indonesia
In Indonesia, Japanese products enjoy a strong reputation for reliability, and cosmetics are no exception. Shiseido, Japan’s largest cosmetics manufacturer, is extremely popular in Indonesia. In addition to operating physical stores primarily in high-end department stores, the company also runs official online shops through its own website as well as major e-commerce platforms.
If you have any questions or concerns after reading this article, please ask them below.
We will respond within a couple of days.
Options for Entering the Indonesian Market
As stated at the beginning of this article, the number of Japanese companies expanding into Indonesia is expected to continue rising, especially in light of political instability in China and concerns over Taiwan.
However, entering the Indonesian market as a foreign company involves significant hurdles. It is not a market where one can easily establish a company without proper preparation.
For companies capable of overcoming these barriers, this presents no issue. However, for others, immediate expansion into Indonesia may not necessarily be the best choice.
PT. TRICRUISE MARKETING INDONESIA offers various test marketing options to support companies in exploring market entry into Indonesia.
If this has sparked your interest, please feel free to contact us.
Additionally, if you find this type of information useful, we recommend subscribing to our newsletter to receive the latest business updates from Indonesia on a daily basis.
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
-
How many Japanese companies are operating in Indonesia?
-
According to a 2019 JETRO survey, 1,489 Japanese companies are operating in Indonesia with local subsidiaries, branches, or representative offices. This is about one-tenth of the approximately 13,600 Japanese companies operating in China.
-
Which regions have the most Japanese company bases in Indonesia?
-
44.3% of these companies have a base in the capital, Jakarta. Including neighboring Banten and West Java provinces, the total exceeds 90%.
-
What types of industries are most common among Japanese companies in Indonesia?
-
Among the companies operating in Indonesia, the most common in the manufacturing sector are those related to transportation equipment parts (automobiles and motorcycles), while in the non-manufacturing sector, wholesale and retail companies (including trading firms) are the most prevalent.
