As a thriving economic hub in North Sumatra, Medan offers a range of lucrative, profitable business opportunities for those seeking to invest and innovate.
From the bustling trade in the city's heart to the expanding industries on its outskirts, this article explores a curated selection of profitable ventures ripe for exploration in Medan.
Whether you're a seasoned entrepreneur or a budding business enthusiast, this guide aims to shed light on the potential endeavours that can thrive in this dynamic urban landscape.
Medan City has become one of the primary investment targets in North Sumatra province (Sumut) in the first half of 2023. Specifically, five areas have garnered the most interest from domestic and foreign investors. These areas include:
The realization of investments in North Sumatra province for the first half of 2023 grew by 15.75% compared to the same period in 2022. In the first half of 2023, the total investment realization reached IDR 22.206 trillion, higher than in 2022 with IDR 19.184 trillion.
The rapid growth of investments in Sumut is attributed to its strategic location and abundant investment potential.
This potential is evident in Special Economic Zones (SEZ) like Sei Mangke, Medan Industrial Area (KIM), Lake Toba National Tourism Strategic Area (KSPN), Bus Rapid Transit (BRT) in Mebidangro, Sports Centre, Kuala Tanjung Industrial Area, and Kuala Namu Airport City.
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The decision to invest in Medan City presents many compelling advantages. Therefore making Medan a prime destination for your business growth and success. These advantages include the following:
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Medan's geographical position sits advantageously near neighboring countries, notably Malaysia, facilitating international trade and cooperation.
Medan's vast and diverse natural resources offer immense potential for various industries, promising sustainability and profitability.
A substantial and promising market awaits within Medan, with consumer opportunities and economic growth prospects.
The local government is steadfast in its commitment to promoting investment. It actively supports infrastructure development and enhances public facilities, fostering an environment conducive to business success.
Medan is home to a highly skilled and experienced workforce spanning multiple industrial sectors, providing businesses with a valuable human resource pool to tap into for growth and innovation.
Other than the above factors, Medan City has been recognized as one of the top eight nominees for Best Investment Services in 2022 at the national level. This nomination is based on an assessment and evaluation conducted by the Ministry of Investment/Indonesian Investment Coordinating Board (BKPM).
In the first half of 2023, five sectors have attracted interest from domestic (PMDN) and foreign (PMA) investors in North Sumatra province, including Medan. These five sectors are:
The foreign investor with the highest investment value is Singapore, with an investment of IDR 5.9 trillion. Following that, the Netherlands has an investment value of IDR 3.36 trillion. Moreover, investments from the British Virgin Islands total IDR 375 billion, Malaysia with IDR 284 billion, and Switzerland with IDR 204 billion.
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The Medan city government is actively seeking investments from various sectors. In July 2023, the Mayor of Medan, Bobby Nasution, invited Singapore to invest in Medan, particularly in the healthcare sector.
The Medan city administration is currently running the Medan Medical Tourism (MMT) program to enhance the healthcare and tourism sectors in the capital of North Sumatra Province.
On another note, in June 2023, Blue Bird expressed its readiness to invest in transportation development in Medan. They are interested in the progress and population of Medan, considering it one of the major cities in Indonesia.
Global, national, and regional economic conditions can influence the development challenges in Medan. According to the Mayor of Medan, some development challenges include controlling inflation and nurturing and growing the local economy.
Micro, small, and medium-sized enterprises (MSMEs) are the main target to foster a more conducive investment climate, including accelerating urban infrastructure to make economic activities more efficient. The Mayor of Medan emphasises the importance of an effective Regional Budget (APBD) in addressing these challenges.
Medan City, as the capital of North Sumatra province, offers several advantages for investment. Apart from its advantages, Medan's nomination as one of the top eight Best Investment Services in 2022 at the national level further emphasizes Medan's attractiveness for investment.
For investors looking to establish their presence in Medan, Ascentium Indonesia stands ready to provide invaluable support. With our comprehensive services encompassing company registration and business licensing, we're dedicated to simplifying and optimizing your business operations in this city.