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Indonesia Education Industry 2025

Education & EdTech Industry in Indonesia

Indonesia's education sector presents exceptional growth opportunities driven by 280 million population (50% under 30 years), rapid digital adoption, and government commitment to quality education. The USD 8 billion EdTech market is growing at 11.5% annually with strong investor interest and regulatory support for innovation.

USD 8B

EdTech Market Size

11.5%

Annual Growth Rate

50M+

Students K-12

80%

Internet Penetration
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Why Invest in Indonesia's Education Sector?

Indonesia offers unique advantages for education businesses with massive demographic dividend, digital transformation, and strong government support.

Young Population

With 50% of 280 million people under 30 years old, Indonesia has one of the largest youth populations globally, creating sustained demand for quality education.

Digital Adoption

80% internet penetration and smartphone usage among students drive rapid adoption of online learning platforms and digital education tools.

Growing Investment

EdTech startups raised USD 2+ billion in recent years, with strong investor appetite and government support for education innovation.

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Indonesia Education Market Overview

Indonesia's education sector is undergoing digital transformation, creating unprecedented opportunities for innovative education providers and technology companies.

Students: 68 Million (K-12 & Higher Ed)

4th largest education system globally

Market Value: USD 40 Billion

Expected to reach USD 65B by 2030

Institutions: 500K+ Schools, 4,500 Universities

Largest education infrastructure in ASEAN

Indonesia Education Market
4th Largest System

Education Investment Segments

Diverse opportunities across the education value chain

EdTech Platforms

USD 8B Market

Online learning platforms, learning management systems, educational apps, and digital content for K-12 and higher education

Key Opportunities:
Video-based learning Adaptive learning AI Gamification platforms Assessment tools
Market Leaders:

Ruangguru (USD 150M raised), Zenius, Quipper, Pahamify

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Schools & Universities

USD 15B Market

International schools, private universities, vocational schools, and specialized educational institutions

Key Opportunities:
International schools Private universities Boarding schools Bilingual programs
Market Leaders:

Sampoerna University, BINUS, JIS, BIS

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Vocational Training

USD 5B Market

Technical skills training, professional development, bootcamps, and certification programs aligned with industry needs

Key Opportunities:
Coding bootcamps Digital skills training English language Professional certification
Market Leaders:

Hacktiv8, EF Education, Wall Street English, Purwadhika

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Test Preparation

USD 2B Market

University entrance exam prep, standardized test prep (TOEFL, IELTS), and academic tutoring services

Key Opportunities:
UTBK preparation International exams SAT/ACT prep IELTS/TOEFL training
Market Leaders:

Bimbel, Kaplan, Manhattan Prep, Local tutoring centers

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Corporate Training

USD 3B Market

Employee upskilling, leadership development, technical training, and professional soft skills programs

Key Opportunities:
Leadership training Digital transformation Sales training Compliance training
Market Leaders:

Dale Carnegie, Franklin Covey, Prasetiya Mulya, PPM Manajemen

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Early Childhood Education

USD 4B Market

Preschools, kindergartens, daycare centers, and early learning programs for children 0-6 years

Key Opportunities:
International preschools Montessori programs Daycare centers Learning centers
Market Leaders:

Kinderfield, TK Al-Azhar, Mutiara Bunda, Sekolah Alam

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Indonesia's EdTech Revolution

COVID-19 accelerated digital learning adoption, creating massive market opportunities

Online Learners

45M+

Active digital education users

EdTech Funding

USD 2B+

Invested in last 3 years

Unicorns

2

Ruangguru & HarukaEdu

Growth Rate

11.5%

Annual CAGR through 2030

EdTech Trends

  • Personalized Learning: AI-powered adaptive learning platforms tailored to individual student needs
  • Mobile-First Solutions: Apps designed for smartphone learning given high mobile penetration
  • Gamification: Game-based learning increasing engagement and retention
  • Micro-credentials: Short courses and certifications for career advancement
  • Live Streaming: Real-time interactive classes connecting teachers and students

Success Stories

  • Ruangguru

    22M users, USD 150M funding, serving 100+ cities with on-demand tutoring

  • Zenius

    15M learners, comprehensive exam prep platform with 80K+ video lessons

  • HarukaEdu

    Vocational education platform, USD 70M funding, partnership with 500+ companies

  • Cakap

    Language learning platform, 2M+ users, live 1-on-1 tutoring

How to Start an Education Business in Indonesia

Step-by-step guide for foreign investors

1

Market Research & Planning

Identify target segment, assess competition, understand curriculum requirements, and develop education concept.

4-6 Weeks Details
2

Company Registration

Establish PT or PT PMA with education as business activity, appropriate capital structure based on segment.

3-4 Weeks Details
3

Education Permits

Obtain institutional permit from Ministry of Education, curriculum approval, and operational licenses.

2-6 Months Details
4

Location & Facilities

Secure suitable location, meet infrastructure requirements, setup classrooms/labs, ensure safety compliance.

2-6 Months Details
5

Teachers & Staff Recruitment

Hire qualified teachers (minimum requirements), support staff, and obtain teaching permits for foreign educators.

2-3 Months Details
6

Launch & Operations

Student enrollment, curriculum implementation, quality assurance, and continuous improvement programs.

Ongoing Details

Education Business Regulations & Requirements

Key compliance and licensing requirements

Formal Education

For schools, universities, and formal educational institutions:

  • Institutional Permit from Ministry of Education
  • Curriculum Approval aligned with national standards
  • Qualified Teachers with minimum S1 degree + teaching certificate
  • Facility Standards meeting health, safety, and accessibility requirements
  • Accreditation from National Accreditation Board (BAN)
  • Regular Reporting on student data, curriculum implementation

EdTech & Non-Formal

For online platforms, training centers, and informal education:

  • Business License (NIB) with education services KBLI code
  • Course/Training Permit for skill-based programs
  • Content Compliance with Indonesian values and regulations
  • Data Protection compliance with personal data law
  • Consumer Protection transparent pricing and refund policies
  • Tax Compliance VAT and corporate income tax obligations

Need help navigating education regulations?

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Education Business Categories (KBLI Codes)

Official business classification codes for education industry

Business Classifications

KBLI Categories for Education

Explore Indonesian Standard Industrial Classification (KBLI) business categories relevant to the education sector. View all categories

Collaborative Secondary Education Units

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Collaborative Units for Early Childhood Education and Primary Education

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Company Job Training

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Competency-Based Education and/or Training Certification Activities

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Cultural Education

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Early Childhood Education

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Early Childhood and Primary Religious Education

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Educational Support Activities

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Government Administration of Health, Education, Culture, and Other Social Services Excluding Social Security

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Government Higher Education

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Government Job Training

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Government Primary Education

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Showing 12 of 28 categories for education

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Need help selecting the right KBLI code for your education business?

Browse All KBLI Codes Get Expert Advice

Frequently Asked Questions

Common questions about education business in Indonesia

Foreign ownership regulations vary by education segment. EdTech and online learning platforms can be 100% foreign-owned. International schools and universities may have ownership restrictions or require partnerships with local entities. Vocational training centers generally allow 100% foreign ownership. We recommend consulting with our team for your specific education segment.

Key permits include: 1) Operational Permit (Izin Operasional) from local education office, 2) Institutional Permit from Ministry of Education, 3) Curriculum approval, 4) Building safety certification, 5) Environmental permit, 6) Business license (NIB). The process takes 4-8 months depending on school level and location.

Teachers must have: 1) Minimum S1 (Bachelor) degree in relevant field, 2) Teaching certificate (Akta IV/Professional Teacher Certificate), 3) For foreign teachers: work permit (KITAS) and recognition of foreign credentials. International schools may have different requirements based on their curriculum (IB, Cambridge, etc.).

Indonesia's EdTech market is valued at USD 8 billion (2024) and growing at 11.5% CAGR. Key drivers include: 45M+ online learners, 80% internet penetration, strong investor interest (USD 2B+ funding), government digital education push, and rising demand for affordable quality education. The market is expected to reach USD 16 billion by 2030.

Minimum investment varies significantly: Small preschool/kindergarten (USD 100K-300K), Primary/Secondary school (USD 2-5 million), Full K-12 international school (USD 10-50 million). Costs include land/building, facilities, curriculum licensing, teacher recruitment, and operational capital for first 2-3 years.

Yes, several incentives available: 1) VAT exemption for education services, 2) Corporate income tax reduction for certain education segments, 3) Import duty exemption for educational equipment, 4) Tax deductions for R&D and teacher training. Learn more about tax incentives.

Popular international curricula: IB (International Baccalaureate), Cambridge International, Australian curriculum, American curriculum, Singapore curriculum, and national curriculum with international standards. Schools must register curriculum with Ministry of Education and may need affiliation with international accreditation bodies.

Process: 1) Company must be PT/PT PMA with education license, 2) Submit IMTA (Foreign Worker Utilization Plan) to Ministry of Manpower, 3) Obtain approval letter (RPTKA), 4) Apply for work visa (VITAS), 5) Upon arrival, convert to work permit (KITAS). Total process 4-8 weeks. We provide comprehensive visa and immigration support.

Curriculum approval requires: 1) Submit curriculum document to Ministry of Education, 2) Demonstrate alignment with national education standards (for formal education), 3) Show qualified teachers and appropriate facilities, 4) Undergo evaluation by education inspectors, 5) Receive curriculum approval certificate. Timeline: 2-4 months for new institutions.

Strong and growing: Middle-class expansion (60M+ households), increasing education spending (6-8% of household income), parent preference for quality education, English language demand, digital skills necessity, and limited public education capacity drive sustained demand. Private education enrollment growing 8-10% annually.

Ready to Enter Indonesia's Education Market?

From EdTech platforms to international schools, our experienced team provides comprehensive support for your education business setup in Indonesia. Join leading global education providers already serving Indonesian students.

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