"This is going to be an exciting project," the 50-year-old Englishman told reporters in the capital Jakarta at his first press conference as Indonesia boss.
Fans of the football-mad country deserve to see their team "winning on the world stage", said Herdman.
"I will bring my passion... to help bring this country to, hopefully, a place it's never been before. It's time."
Herdman said Indonesia "is ready, it has no more excuses".
The former Canada coach comes in following the departure of Barcelona and Dutch great Patrick Kluivert.
Kluivert left the Indonesia job after failing to get them to this year's World Cup.
Indonesia have been to the World Cup once, in 1938, when they were under Dutch colonial rule.
The Indonesian football association, PSSI, has hailed Herdman's appointment as "the beginning of a new era".
Herdman guided Canada's men to the 2022 World Cup, their first appearance in 36 years.
He took Canada's women to the quarter-finals of the 2015 World Cup hosted by the country.
In Indonesia, a country of more than 280 million, "80-90 percent of people are football mad", said Herdman.
"They love their football. This is the place to be."