Indonesia Company Registration-Highlights

1.      Indonesia’s economy is fast growing and yet stable. It remained largely untouched by the great recession;

2.      Due to cheap labor and availability of resources, Indonesia has a good reputation as a hub manufacturing and agricultural production.

3.      The most common Indonesia company establishment is the LLC, also called Penanaman Modal Asing (PMA). This Indonesia business setup allows for 100% foreign ownership for the first 15 years of operations, after which a local individual must acquire a 5% share;  

4.      Indonesia company incorporation requires PMA to have one resident director and two shareholders; a resident company secretary must, also, be appointed;

5.      Indonesia company formation can take up to 3 months. For incorporation, the firm’s owner must deposit a minimum capital of US$1.2m in an Indonesia corporate bank account. For the past decade Healy Consultants has been involved in effectively incorporating Indonesian companies for its Clients;

6.      An Indonesia business face a flat corporate tax rate of 25% on all profits;

7.      There are no exchange controls and hence financial transactions are smooth;

8.      Incorporating a company in Indonesia allows the entity to hire expatriate staff in the new setup;

9.      Every Indonesia company establishment must obtain a taxpayer registration number together with a VAT collection number;

10.  Indonesia has signed double taxation agreements (DTA) with 59 countries including Singapore, USA and Australia helping companies to save on withholding taxes on payments.The Indonesian government offers  incentives such as tax rebates and relaxation of import duties on expansion of operations for Indonesian businesses;                                                                                                                                                                                    

11.  A business setup Indonesia profits from the use of a free trade zone in Batam. The space in this zone can be rented out for only US$2/m2 per month.  Goods imported in through the zone does not require payment of VAT;

12.  Setting up a business in Indonesia is long process because of red tape and corruption among the government officials;

13.  Registration in different government entities such as the Ministry of Law and Human Rights and Workers Social Security Program;

14.  Indonesia company formation requires submission of a 6 month business plan to the Capital Investment Coordinating Board (BKPM) for issue of temporary and permanent business license;

15.  Any additional license and taxation might be required, based on the company’s Indonesia business.



Aidan Healy

Business Owner

Healy Consultants


JL. Danau Toba No. 104

Bendungan Hilir

Jakarta Pusat Indonesia 10210

Tel: (+65) 6735 0120