1. Short-Term Rentals (Villas, Airbnb)
With Indonesia, especially Bali, becoming a top global tourist destination, short-term rentals have skyrocketed in popularity. Platforms like Airbnb and Booking.com make it easy for property owners to list their villas, guesthouses, or apartments and attract tourists from around the world.
Trends: The rise of digital nomadism and long-term tourism stays means more travelers are seeking unique and flexible accommodations. The demand for private villas and boutique stays has grown significantly, especially in regions like Bali, Lombok, and Yogyakarta.
Profitability: Short-term rentals can generate high income, especially during peak tourist seasons. A well-maintained villa in Bali, for example, can earn between IDR 5 million to 15 million per night, depending on location and amenities. With proper marketing and management, this type of business can provide a steady stream of income year-round.
2. Co-Working Spaces
As remote work becomes more common, particularly among digital nomads and freelancers, co-working spaces have become a rising trend in Indonesia’s major cities and tourist hotspots. Property owners can convert underutilized spaces into co-working hubs, offering flexible workspaces and creating a community for remote workers.
Trends: The shift to remote work has accelerated in recent years, with many professionals opting to work from tropical destinations like Bali and Jakarta. Co-working spaces that offer high-speed internet, comfortable working environments, and networking opportunities are in high demand.
Profitability: Co-working spaces generate income through membership fees, event hosting, and renting out meeting rooms. Depending on the location and size, co-working spaces in popular areas can charge between IDR 100,000 to 500,000 per day or offer monthly packages for consistent revenue. As the remote work trend continues to grow, co-working spaces offer long-term profitability.
3. Retail Stores
Retail remains one of the most consistent business models in Indonesia. Whether it’s a standalone store or a shop within a larger commercial complex, opening a retail space can be a lucrative venture for property owners. There is high demand for both small, independent shops and larger retail outlets that cater to local communities or tourists.
Trends: As the middle class in Indonesia continues to grow, so does the demand for retail stores offering everything from local products to luxury goods. Shopping centers, pop-up shops, and markets are becoming increasingly popular, especially in urban areas.
Profitability: Retail businesses provide stable, long-term income through rental contracts with store owners or by directly running a shop. Rental income can range from IDR 10 million to 50 million per month, depending on the property’s location and the type of store. Prime areas such as Jakarta’s Central Business District or Kuta in Bali tend to command higher rental rates.
4. Boutique Hotels and Guesthouses
Indonesia’s tourism industry offers immense potential for property owners interested in the hospitality sector. Developing boutique hotels, guesthouses, or bed-and-breakfasts can be an excellent way to leverage the country’s booming travel market. With a well-located property, you can provide visitors with a unique and personalized lodging experience.
Trends: Travelers are increasingly seeking smaller, more intimate accommodations that offer local culture and personalized services. Boutique hotels in tourist-heavy areas like Bali, Bandung, and Yogyakarta have seen steady growth as tourists look for alternatives to large hotel chains.
Profitability: Boutique hotels and guesthouses have high earning potential, especially in tourist hotspots. Depending on the location and level of luxury, these accommodations can charge anywhere from IDR 1 million to 20 million per night, offering significant returns during high seasons. Well-marketed properties with good reviews can maintain high occupancy rates year-round.
5. Event Venues
As the demand for unique event spaces continues to rise, transforming your property into an event venue can be a profitable opportunity. From weddings and corporate retreats to conferences and workshops, event venues are becoming increasingly popular in cities and tourist destinations across Indonesia.
Trends: With the growth of the wedding industry and the increasing number of corporate and social events, venues that offer picturesque settings and modern amenities are in high demand. Beachfront properties, villas, and historical buildings make ideal venues for weddings and events.
Profitability: Event venues can charge premium rates, particularly for weddings and large corporate events. Depending on the size and location of your property, event bookings can bring in between IDR 20 million to 100 million or more per event. The ability to host multiple events per month can significantly boost your revenue and make this a lucrative venture.
