Small business confidence in Indonesia remains strong survey shows

• The share of growing Indonesian small businesses reached its highest level since 2019
• Indonesian small business maintain a strong focus on customer satisfaction 
• Cyberthreats remain a key concern 

Indonesian small businesses experienced their most successful year in 2025 since 2019, according to CPA Australia’s annual Asia-Pacific small business survey. 

Momentum is expected to remain positive in 2026, with 86 per cent of small businesses expecting to grow, underpinned by a strong focus on technology and customer satisfaction.

Confidence in Indonesia’s economy is also strong, with 71 per cent of small businesses expecting the economy to grow, above the Asia-Pacific survey average of 65 per cent.

“Strong and rapid returns on technology investment continue to support high levels of digital adoption”, said Priya Terumalay, Regional Head for CPA Australia in Southeast Asia.

In 2025, 72 per cent of Indonesian small businesses reported that their technology investments improved profitability, well above the survey average of 56 per cent and the second highest result among surveyed markets.

However, technology investment remains concentrated in computer hardware and customer-facing functions, like mobile apps and payments. 

“Small businesses should focus more on deeper productivity-enhancing technologies, such as artificial intelligence, cloud tools and customer relationship management software for sustained profitability, all closely associated with high growth businesses,” Priya said.

Despite remaining relatively high, digital payment usage declined slightly in 2025, with 69 per cent of small businesses receiving more than 10 per cent of their sales through digital payment platforms such as GoPay, ShopeePay, OVO, Dana, LinkAja and WeChat Pay, compared with 74 per cent in 2024.

Likewise, the share of Indonesian small businesses generating more than 10 per cent of their revenue from online sales has declined slightly from 68 per cent in 2024 to 64 per cent in 2025.
“As part of their technology investment, small businesses must also invest in adequate protection measures to minimise cyber risks,” Priya cautioned, 

In 2025, 49 per cent of Indonesian small businesses reported losing time or money to cyberattacks, the second highest result among surveyed markets. However, only 45 per cent reviewed their cybersecurity protections in the past six months. 

Reflecting strong business growth, employment growth is also strong, with 40 per cent of Indonesian small businesses increasing their staff numbers in 2025, and hiring intentions expected to rise further to 52 per cent in 2026.  

Demand for external finance also remains high, with 78 per cent of Indonesian small businesses requiring funding from external sources in 2025, and this demand is expected to remain strong in 2026. 

Despite positive business sentiment, innovation activity is subdued, with only 28 per cent reporting they will introduce a new product, service or process unique to Indonesia this year, down from 37 per cent in 2025.

“Rising costs and global uncertainties could be contributing factors to a more cautious approach to innovation,” said Priya.

Nevertheless, Indonesia’s small business sector is dominated by young entrepreneurs with a stronger appetite for risk taking, digital adoption and market expansion.

In 2025, 57 per cent of survey respondents who owned small businesses in Indonesia were aged under 40, the highest share among the surveyed markets.

“Indonesia’s predominantly young entrepreneurs are well positioned to achieve better business outcomes through continued focus on customer satisfaction, supported by digital adoption, improved business strategy and good quality capital investment.”

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Selvi Tanggara
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