Expanding a business is never a small move—it’s a big decision with some serious risks, especially with the economy being as unpredictable as it is right now.
That’s why every expansion plan needs to be thought through carefully. It’s not just about pouring in a big investment, but also about being ready for the possibility that things might not go as planned.
Usually, when businesses think about expanding, they’ll look at Tier 1 cities first. In Indonesia, that means big names like Jakarta, Surabaya, Bandung, Medan, and other major cities that generally offer better infrastructure, more developed urban areas, and a wider range of consumers.
But here’s something to keep in mind:
Just because these cities are all in the same category doesn’t mean they’re all the same. Each city has its own unique market behavior, buying power, competition level, and economic conditions.
So before jumping into expansion, it’s super important for businesses to dig into the data and figure out which city actually offers the best opportunities the one with the strongest market potential, solid revenue outlook, and long-term profit possibilities.
Cities Showing Positive Retail Growth
According to the retail sales survey from Bank Indonesia, several big cities saw a nice boost in retail sales in January 2025.
One standout is Semarang (including nearby Purwokerto), which recorded a huge 19.2% increase compared to last year. Banjarmasin also saw growth, though smaller, at 1.9%.
And it’s not just those two—other cities are seeing sales going up too, like:
- Denpasar 6,3%
- Makassar 2,1%
- Jakarta 2,0%
Looking at the month-to-month growth, Semarang and Purwokerto still showed good progress, with increases of 8.1% and 7.4% respectively.
Unfortunately, Jakarta and Makassar didn’t do as well their retail sales actually dropped compared to the previous month, with Jakarta down by 9.5% and Makassar by 6.8%.
This just goes to show how important it is to really understand the local market dynamics. Even though both cities are big, their consumer behavior and market potential can be very different. That’s why businesses need to dig deeper into these trends before deciding where to expand or focus their products.
Find the Best Location to Expand
Once you’ve picked the city to expand into, the next big step is deciding exactly where to open your new branch. This choice is just as important as picking the city itself because it can make a huge difference in how well your new location performs.
Just like not all Tier 1 cities are the same in terms of business potential, not every spot inside a growing city offers the same chances.
A city might be doing great overall, but some areas within it could be way better than others depending on things like how crowded it is, how many people pass through, where your competitors are, how easy it is to get there, and what kind of customers live nearby.
That’s where LOKASI Intelligence comes in — we help businesses analyze these details so you can pick the absolute best places to open new branches.
How do we do it?
Take Semarang for example. Based on data from Bank Indonesia we talked about earlier, Semarang is one of the top Tier 1 cities with the highest retail sales growth in early 2025. Let’s dig into the data and find the best spots in Semarang for your next branch.
After the analysis is done, businesses will get location recommendations that are grouped into categories—from acceptable 1 to 4 (which means highly recommended) all the way down to unacceptable (not recommended).
Based on the results for Semarang, here are 5 areas with big potential that are worth checking out for opening new branches:
- Semarang City, South Semarang District, Mugasari Village
- Semarang City, Pedurungan District, Tlogosari Kulon Village
- Semarang City, Tembalang District, Sendangmulyo Village
- Semarang City, Pedurungan District, Muktiharjo Kidul Village
- Semarang City, Banyumanik District, Srondol Wetan Village
LOKASI doesn’t just stop at the sub-district level — it also lets you zoom in closer to see details like specific road sections, how far people usually travel, and the busiest spots with the most activity. This way, you can pick the most strategic locations that really fit your target customers.
If you want to find out more about these spots, feel free to contact us anytime via Email: [email protected] or WhatsApp: 0877-7907-7750. We’re ready to help!
