{"id":18999,"date":"2022-08-31T07:01:42","date_gmt":"2022-08-31T07:01:42","guid":{"rendered":"https:\/\/www.hashmicro.com\/blog\/?p=18999"},"modified":"2026-01-09T07:30:30","modified_gmt":"2026-01-09T07:30:30","slug":"business-expansion-2","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/blog\/business-expansion-2\/","title":{"rendered":"Here is Why You Should do Business Expansion to Indonesia"},"content":{"rendered":"

When your business continues to thrive, you will reach a certain point where you start considering expanding your business. This is due to the numerous advantages that business expansion provides for the business owner. It can increase a company’s market share and customer base. It also can result in significant cost savings and operational improvements. Eventually, <\/span>managing multiple channels with<\/span> an integrated ERP system<\/span> is essential when you expand your business.<\/span><\/p>\n

Expanding a business is not an easy decision to make as you need to keep several factors in mind. If not managed properly, expansion can bring struggling businesses to their downfall. However, <\/span>ERP software <\/span>comes as a solution<\/span> to assist you in growing your business. With powerful features that increase efficiency and productivity in every company\u2019s operational activities, <\/span>the ERP solution<\/span> drives your company\u2019s growth. Learn more about the ERP software <\/span>pricing scheme calculations<\/span><\/a> to understand its significance for your expanding businesses.\u00a0<\/span><\/p>\n\"Free<\/a>\n

Strategies for Business Expansion<\/b><\/h2>\n

\"Strategies<\/p>\n

Expanding a business means long-term planning, financial analysis, and economic resources. Therefore, business expansion involves using certain strategies to help you to succeed. Before deciding on which plan to implement, you should understand how business expansion strategies can change and evolve alongside your company’s goals, objectives, and circumstances. Here are the six most effective business expansion strategies.<\/span><\/p>\n

Market penetration strategy<\/span><\/h3>\n

Market penetration is the percentage of people who can access your company’s products or services. You can effectively increase the number of customers by promoting your business to a specific market segment. Marketing to potential customers who are not yet committed to a certain product or brand is one of the best ways to increase market penetration.\u00a0<\/span><\/p>\n

You can accomplish this by launching local advertising campaigns. For example, if you own a pest control company, you could hold a campaign where you offer free chemical treatments to people who own pets especially those with high-maintenance furbabies such as Catahoula bulldog and high-end cat breeds like Bengal feline. This will increase your market share because you provide a service with high demand.<\/span><\/p>\n

Marketing and promotion<\/span><\/h3>\n

To maximize your market share, you must focus on solid marketing and promotional strategy. You can cultivate strong customer loyalty to your brand or company. Creating customer loyalty is achievable by attracting new customers in various ways. One of the most effective ways to tackle this is to build a strong customer base.\u00a0<\/span><\/p>\n

After gaining many new customers, you can expand your business more quickly as you will have more new customers to spread your company\u2019s name to a broader community. Creating a website is one of the most effective ways to attract new customers. A website is an excellent way to showcase your company\u2019s services and project a professional image. If you intend to expand internationally, you should also create a localized version of your website to engage the local customers better.\u00a0<\/span><\/p>\n

Expansion into a new market<\/span><\/h3>\n

When a market becomes saturated with one type of product or service, it tends to dry up. In traditional business expansion, many businesses expanded into areas where they were previously unable to do business.\u00a0<\/span>This could be due to various reasons, such as a lack of local market penetration, lower capital costs, higher profit, or a shift in consumer preferences. Despite what causes the market saturation, you can use new market expansion strategies to complement your market penetration approach<\/a> and help your business thrive.<\/p>\n

Expand your business abroad<\/span><\/h3>\n

For some businesses, the local market eventually becomes saturated. Thus, the only way to expand is to go abroad. As you will be able to sell your products or services to a broader audience, this can come like a double side of a coin. Therefore, this is a step that many businesses are afraid of because it brings both challenges and opportunities.\u00a0<\/span><\/p>\n

You should find local partners to manage a portion of your business operations, particularly the operational and administrative aspects, such as HR and payroll, that can cause you to lose money and violate local law. You need to consider all factors that can undermine your market presence. However, to overcome this situation and secure your business processes, <\/span>implementing the integrated HRIS system <\/span><\/a>comes in handy<\/span>.\u00a0<\/span><\/p>\n

Start a franchise<\/span><\/h3>\n

Starting a franchise could be one of the best strategies for business expansion. A franchise is opening a business in a location where there is market demand, and people are willing to invest money and energy to manage the business. Franchises allow you to grow your business without having to worry about competitors. Additionally, this type of strategy provides you with the environment to expand broadly, with each branch able to manage its business on its own.\u00a0<\/span><\/p>\n

Reasons Why You Should Expand Your Business to Indonesia<\/b><\/h2>\n

\"Expanding<\/p>\n

The world sees Indonesia as the largest archipelago with beautiful tourist destinations. However, Indonesia is more than just one of the most popular tourist destinations. Indonesia is an excellent place to locate your investments and register your business with its strategic location. Most importantly, Indonesia has enjoyed steady economic growth over the last decade.\u00a0 In 2019, the country’s GDP was 1119.19 billion USD, making it the largest economy in Southeast Asia and one of the world’s top 20. Furthermore, there are several more reasons why you should expand your business to Indonesia.\u00a0<\/span><\/p>\n

1. Trade agreements<\/span><\/h3>\n

The Indonesian government is constantly working to boost the country\u2019s economic growth and make it easier for foreign businesses to invest. Signing trade agreements is one way to achieve this growth. Indonesia has had several trade agreements up to the present day, including the economic partnership agreement with Japan (which went into effect in 2008) and the preferential trade agreement with Pakistan (signed in 2012).<\/span><\/p>\n

The Indonesia-Australia Comprehensive Economic Partnership Agreement<\/a> (IA-CEPA) and the historic signing of the Regional Comprehensive Economic Partnership came into effect in 2020. (RCEP). The agreement involved fifteen countries (10 ASEAN countries, New Zealand, Australia, China, Japan, and South Korea), making it one of the largest trading agreements, covering nearly a third of the global economy.<\/span><\/p>\n

2. Ease of doing business<\/span><\/h3>\n

According to World Bank\u2019s report, Indonesia ranked 73 out of 190 economies in total, with an overall score of 69.2 in terms of ease of doing business in 2020. This is possible thanks to the government\u2019s initiatives.\u00a0<\/span><\/p>\n

Firstly, the process of registering a company in Indonesia has significantly improved. Previously, the company registration process took at least two months to complete. However, this is not the case in 2020, as foreign investors can now expect to complete the entire process in one and 1.5 months. Furthermore, new businesses established in Jakarta are no longer required to submit a Company Domicile (SKDP).\u00a0<\/span><\/p>\n

Since the implementation of the Online Single Submission (OSS) system, more businesses can now begin operations immediately as long as the system has registered a Business Identification Number (NIB) without the need for additional licenses. There are 45 new business fields, including call center, event organizer, ticketing in travel agencies, and education and training.<\/span><\/p>\n

Finally, foreign investors who fill the positions of shareholders, directors, or commissioners and meet the requirements of invested shares can begin working immediately with a permit of the Investor KITAS. Other advantages include the ease of application and the waiver of the government’s work permit fee (DPKK).<\/span><\/p>\n