Foreigners can either set up a limited liability company which is 100% foreign owned or a limited liability company through a joint venture with Indonesian partners.

How can I start a business in Indonesia?

The following documents must be submitted to BKPM to start a foreign company PT PMA in Indonesia:

1. Principle license and business license.
2. Domicile letter.
3. Deed of establishment.
4. Approval of Business Registration Number (NIB)
5. Tax identification number (NPWP)
6. Taxable entrepreneur confirmation (PKP)

How much does it cost to start a business in Indonesia?

Indonesia company set up costs in Year 1 amount to US$4,250 and annual company costs in Year 2 and thereafter amount to US$2,300. The average total fees per Indonesia company formation engagement amounts to US$19,440 includes company set up, company secretary, Government registrations and corporate bank account.

What is a good business to start in Indonesia?

30+ Best Small Business Ideas in Indonesia 2021

• Travel Consultancy business. Becoming a travel consultant can be a great business in Indonesia for sale in which you sell your services.
• Equity Financing Business.
• Business of Hotels.
• Book Keeping.
• Internet Service Provider.
• App Developers.
• Furniture Factory.
• Food Carts.

Can foreigners own business in Bali?

Many businesses are open to full foreign ownership. However, some business classifications (KBLI) only allow partial foreign ownership. There are many hospitality businesses with such restrictions….Limited Percentage of Foreign Ownership.

Is it easy to do business Indonesia?

Indonesia is not the easiest place to start an enterprise or, generally, to conduct business. This is reflected by the World Bank’s Doing Business 2018 index in which the country ranks 72nd.

Can foreigners buy property in Indonesia?

Can foreigners own freehold property in Indonesia? No, foreigners are not allowed to own freehold property in Indonesia. Instead, we can lease or own properties under other arrangements, such as right-to-build or right-to-use contracts.

Is Indonesia a good place to start a business?

According to The World Bank Group’s Ease of Doing Business ranking, Indonesia ranks 73 in the world to do business, ahead of the Philippines (rank 124), below China (46) and Malaysia (15). The country is on an upwards trend for ease of doing business, ranking 128 in 2013 and 91 in 2017.

A foreigner can start doing business in Indonesia as a local citizen or a foreign investor under a local nominee arrangement as this kind of company allows only 100% local ownership. On the contrary to other legal entities, a local company is not a subject to such strict requirements and limits.

How long does it take to set up a company in Indonesia?

It should take between 1 to 1.5 months. For speedy incorporation, you can choose a shelf company (ready-made company) instead. Can I set up a joint venture company for my business?

How to start a representative office in Indonesia?

Learn how to Start a Representative Office. Any business activities which are not banned by Negative Investment List. Required to invest with minimum IDR 10 billion after obtaining the Capital Investment Registration or Business License, in the first 5 years.

How much equity do you need to start a business in Indonesia?

For the sake of clarity, let’s define small business as a business with equity less than 300,000 USD. We often shock our clients when we say that they need to have an investment plan for 10 billion Rupiah (~1 million USD) in order to get BKPM approval for the investment.