Working with the British Chamber of Commerce in Indonesia, Liverpool aim to train children in the world's fourth most populous country, which is yet to see its national team succeed at international level.
Liverpool brought their most decorated player, Phil Neal, to launch the academy in the capital Jakarta, the club statement said.
Moving on up: Liverpool's fortunes have been improving both on and off the pitch in recent weeks
Neal is scheduled to meet Indonesia's foreign minister Marty Natalegawa, himself a Liverpool fan, on Saturday at a function hosted by bank Standard Chartered, which does much of its business in Asia and in 2009 signed a four-year shirt sponsorship deal with Liverpool worth ?80million.
Liverpool has a large Asian fanbase and will go on tour to China, Malaysia and South Korea in July but not to Indonesia.
Liverpool have been revived under new boss Kenny Dalglish and will secure a place in the Europa League if they beat Tottenham Hotspur on Sunday. Dalglish also signed a three-year contract as Liverpool manager on Thursday.
Signed, sealed and delivered: Dalglish has penned a three-year deal at Anfield
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