Kickstarting Business in Indonesia
Indonesia's vast and dynamic economy presents a compelling opportunity for foreign businesses seeking growth.
With its burgeoning consumer market and strategic location, investing in Indonesia can offer access to a wealth of untapped potential and a gateway to the broader Southeast Asian region.
Boasts extensive geographical and demographic diversity
The world's largest island country, spanning a vast area with over 17,000 islands.
Population of over 275 million, making it one of the most populous countries.
The country is ethnically and linguistically diverse, with around 300 native ethnic groups and 742 languages and dialects spoken.
The majority of the population practices Islam (88%), with minority followers of Christianity, Hinduism, Buddhism, and other religions.
Possesses abundant natural resources
Indonesia is rich in natural resources, including significant reserves of oil, gas, coal, and various minerals.
It has a thriving agriculture sector, producing crops like rice, corn, spices, rubber, coconut, sugar cane, tea, coffee, and palm oil.
Has a complex legal system influenced by Dutch law and local customs, with the 1945 Constitution as the supreme law.
The government places a strong emphasis on democracy and economic stability, with efforts recognized internationally for creating an investment-friendly environment.
Government ample support to businesses
Business Opportunities
Explore Indonesia's dynamic market for foreign business growth.
Busines Entities
Unlike Indonesian who can set up business presence in various form, such as limited liability company, cooperative, partnership, or commanditaire vennootschap (CV) basically there are 2 forms of business presence for foreign parties in Indonesia : by either setting up a limited liability company (Perseroan Terbatas or shortly “PT”) with foreign direct ownership (Penanaman Modal Asing or shortly “PMA”), or by opening up a Representative Office.
The most common and popular company structure in Indonesia is Perseroan Terbatas. This type of company may be either public or proprietary company. A public company is a company which is permitted to raise capital from the public and includes those companies listed on the Stock Exchange. A proprietary company is not permitted to raise funds from the public.
Workforce
The Indonesian Manpower Law is protective of the interests of the workers. Therefore it is important to familiarize yourself with employer obligations according to the Manpower Law. The most obvious obligation is to provide all your full-time employees with health insurance and basic social security benefits.
Taxation
An Indonesian tax subject includes an individual, a body, a permanent establishment, and an undivided estate as a unit in lieu of the beneficiaries. Income tax is imposed on taxable income received by a tax subject within a fiscal year.