I. INDONESIA IN A GLANCE
II. MACROECONOMIC INDICATORS
A. Basic Assumptions for Macroeconomic 2025
B. Development Goals and Indicators 2025
C. Policies to Achieve Macroeconomic Targets
III. INDONSIAN ECONOMIC PROSPECTS and PROJECTIONS
A. Indonesia’s Economic Prospects for 2025
B. Indonesian Economic Projections for 2025
C. Global Economic Conditions and Challenges
A. Fiscal Policy
B. Innovative Fiscal Policy
C. Monetary Policy
V. BUSINESS READY (B-READY) IN INDONESIA
A. World Bank Report on B-Ready in Indonesia
B. Business goals
C. Starting Business in Indonesia - 2025
D. Investment incentives
Indonesia is the largest archipelagic country in the world which as of 2021 has more than 17 thousand islands stretching from Sabang to Merauke. Cultural riches range from traditional ceremonies/clothing, traditional houses, typical food, regional languages, ethnicities, beliefs, religions and languages.
Around 56.7% of Indonesia’s population lives on the island of Java and Jakarta is the most densely populated city in Indonesia .
Indonesia is the world’s fourth most populous nation with a total of 283.49 million people as of Februari 2025. Ranking of countries with the largest population in the world: 1, India, 2. China, 3. United States, 4. Indonesia
Indonesia is the country with the second largest number of regional languages after Papua New Guinea having 720 regional languages (data from Ethnologue as of 2024 based on records from the Language Development and Development Agency - Ministry of Education and Culture).
Indonesia has around 1,340 tribes, spread across 38 provinces throughout Indonesia. With a very diverse linguistic landscape, each ethnic group isolated by oceans and mountains for thousands of years, developed their own languages and dialects.
Table 1. Basic macro assumptions for 2024
Table 2. National Development Goals & Indicators
Table 3. Real GDP Growth in ASEAN Countries
ABBREVIATION
Indonesia has six religions with the largest Muslim population in the world 87.02%, Protestant 6.9 Catholic 2.9*. Hindus 1.7%%; (BPS 2024)
Indonesia is the country with the largest economy in the ASEAN region. Indonesia is also the only ASEAN country that is a member of the G20, the country with the 8th largest economy in the world in terms of purchasing power parity. The World Bank noted that Indonesia’s gross income per capita in 2024 is IDR 78.62 million or the equivalent of USD 4,960.33 per year, which is in the upper middle income country category. The classification of upper middle income countries as of July 1, 2023 to 2024 is US$ 4,466 to US$ 13,845 while Indonesia’s per capita income in 2022 will reach US$ 4,580
Others:
• National and official language: Bahasa Indonesia
• Motto: Indonesia has the motto Bhineka Tunggal Ika (Unity in Diversity)
• Capital: Jakarta’s status as the capital will not change before President Prabowo Subianto signs the Presidential Decree (Kepres) on the relocation of the capital.
• Currency: Rupiah
Indonesia’s basic macroeconomic assumptions for 2025 include
1. The rupiah exchange rate against the US dollar is IDR 16,000/US$
2. The 10 years SBN interest rate is 7.0%
3. Oil lifting of 605 thousand barrels per day
4. The price of Indonesian crude oil (ICP) is US$82 per barrel
5. Natural gas lifting of 1,050 thousand barrels of oil equivalent per day
6. Inflation of 2.5%
7. Economic growth of 5.2%
8. State Budget deficit is 2.53% of GDP
The government is committed to pushing Indonesia out of the Middle- Income Trap
The estimates above are quite realistic, but on the other hand, we still anticipate the risk of global uncertainty, especially the impact of turmoil in developed countries. For this reason, economic growth will primarily be based on domestic economic activities, and the Government will ensure that people’s purchasing power is maintained, considering that public consumption takes up a very large portion, namely 55% of GDP.
Several strategies will be implemented to achieve these assumptions, including:
1. Increasing access and quality of education
2. Improving the quality of learning and student attendance
3. Infrastructure development
4. Accelerate poverty alleviation and reduce inequality
5. Down streaming and transformation of the green economy
6. Strengthening inclusiveness
7. Strengthening institutions and simplifying regulations
Table 1
Basic Macroeconomic Assumptions Year: 2025
Source: Ministry of Finance
Note: RAPBN=State revenue and expenditure budget plan. APBN= State Budget
1. National development targets 2025
1. Indonesia becomes a strong, independent and inclusive country
2. Building a Golden Indonesia 2045 both from the physical and human aspects
3. Realizing a just and prosperous society evenly, both materially and spiritually
2. Development indicators
1. Income per capita
2. Inflation
3. Quality of life index
4. Savings rate
5. Human Development Index (HDI)
6. Economic structure
The Sustainable Development Goals (SDGs) are a guide to achieve a sustainable future, consist of 17 goals which are divided into
1. The four pillars of development are:
1. Social development:
(1) No poverty, (2) no hunger, (3) healthy and prosperous life, (4) quality education. (5) gender equality
2. Economic Development
(1) Clean and affordable energy; (2) decent employment and economic growth; (3) Industry, innovation and infrastructure; (4) Reducing gaps; (5) partnership to achieve goals
3. Environmental development
(1) Clean water and adequate sanitation; (2) Sustainable cities and settlements; (3) Responsible consumption and production; (4) Handling climate change; (6) Marine Ecosystem and (7) Land Ecosystem
4. Legal development and governance: (1) Peace, (2) Justice and (3) Strong institutions
2. Five pillars of the 2030 agenda:
1) Human; 2) Planets; 3) Prosperity; 4) Peace; 5) Partnership.
These five pillars are interrelated so that progress on one pillar must support progress on the other pillars
Indonesia’s economic growth target for 2025 is 5.2% with a focus on maintaining people’s purchasing power through controlling inflation and creating jobs.
Table 2
Development Goals and Indicators, 2023-2025
*) Realization 2024
Source: Central Bureau of Statistic (Indonesia) and Results of Preliminary Discussions on the 2025 Draft State Budget with House of Representatives of the Republic of Indonesia.
A. Indonesia’s economic prospects for 2025 Indonesia’s economic prospects are expected to grow steadily in 2025, reaching 5.2 percent, slightly higher than in 2024, although it still faces various challenges and opportunities.
1. Opportunity
1. Domestic demand increases, especially household consumption and investment.
2. Investment is expected to continue to grow, driven by decreasing loan costs and fiscal policies that support the growth of Micro, Small, and Medium Enterprises
3. The Indonesian consumer market has the potential to record strong growth if fiscal stimulus measures can be strengthened
4. Recovery in inflation and increasing private sector confidence are positive signals
2. Predictions from various institutions
1. The IMF estimates that Indonesia’s economic growth in 2025-2029 is expected to stagnate at 5.1%
2. The Indonesian Employers’ Association (APINDO) predicts that Indonesia’s economic growth in 2025 will be in the range of 4.9 to 5.2 percent
B. Indonesian economic projections for 2025
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1. Economic growth
Rising geopolitical tensions are expected to continue to challenge the global economy. The IMF predicts global economic growth in 2025 will stagnate at 3.2 percent with a fairly high inflation rate of 4.5 percent.
Amidst the challenging situation, Indonesia’s economic growth is projected to reach 5.2% in 2025, as stipulated in the 2025 State Budget Law and inflation will be maintained at around 2.5%. The Rupiah exchange rate against the US dollar is estimated to be in the range of Rp15,300 - Rp16,000, while the yield on 10-year SBN (Surat Berharga Negara = the Government security) is estimated to be in the range of 6.9-7.3 %. SBN are financial instruments issued by the Indonesian government to finance budget deficits and development projects. Increasing public consumption, investment and government spending are the main driving factors for Indonesia’s future economic growth.
The IMF, World Bank, OECD and UN have issued projections for Indonesia’s economic growth in 2025 in the range of 5.1% (Global Economic Prospects report - 17 January 2025). According to the World Bank, among larger countries, only Indonesia is expected to grow in 2024 and 2025 above pre- pandemic levels.
The Asian Development Bank (ADB) and a number of international institutions predict that the Indonesian economy in 2024 and 2025 will tend to be stable at around 5.1%, driven by strong domestic and external demandInflation continues to be maintained low at 2.5+ 1% (BI projection
2. Inflation continues to be maintained low at 2.5+ 1% (BI projection)
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B. Indonesian economic projections for 2025
3. The IMF noted that in 2024, Indonesia managed to rank 8th in the world based on GDP adjusted for purchasing power parity (PPP) with the following order:
1. China with a GDP achievement of USD 37.07 trillion
2. United States with a GDP of USD 29.17 trillion
3. India with a GDP of USD 16.02 trillion
4. Russia achieved GDP reaching USD 6.91 trillion
5. Japan achieved a GDP of USD 6.57 trillion
6. Germany achieved GDP reaching USD 6.02 trillion
7. Brazil achieved GDP reaching USD4.7 trillion
8. Indonesia achieved a GDP of USD4.66 trillion
9. France achieved a GDP of USD4.36 trillion
10. United Kingdom (UK) achieved GDP - worth USD4.28 trillion
4. Indonesia’s financial potential in 2025 is estimated to remain promising, driven by policy reform, adoption of digitalization, and investment in strategic sectors
C. Global economic challenges in 2025
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The global economy in 2025 is expected to face challenges, among others:
1. Several developing countries have low incomes and have experienced a significant decline/stagnation in growth, such as China.
2. Long term tight monetary policy.
3. Increased volatility in financial markets.
4. Trump’s election for a second term adds complexity to the US and world economies.
5. Continued geopolitical tensions,
6. The impacts of climate change will increasingly dominate global economic policy
Based on the World Economic Outlook (WEO) released by the IMF in October 2024, global economic growth in 2025 is projected to reach 3.2%, a slight increase from the 2024 projection of 3.1%.
The solution to face the above challenges is:
1. Carry out prudent budget management and efficiency in various fields,
2. Increase law enforcement efforts, especially eradicating corruption,
3. Maintain domestic political stability,
Formulate appropriate policies to prevent stagnation. According to the World Bank, factors that must be considered are:
1. the trend of household consumption continuing to decline in the East Asia and Pacific region, including Indonesia, as reflected in the slowing growth in retail sales and imports compared to the pre-pandemic era
2. the contribution of Indonesian manufacturing exports is still low to the economy
3. private investment that still needs to be increased.
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C. Global economic challenges in 2025 Indonesia needs to continue to interact with the global economy, both through trade and investment.
Table 3
Projected Real GDP growth of several ASEAN countries 2022 – 2025 (% change)
Source: 1.IMF projections for the ASEAN region 2024 – 2025
2. IMF -Country report
A. Fiscal policy
With the theme “Accelerating Inclusive and Sustainable Economic Growth”, and based on basic macroeconomic assumptions for 2025, the Indonesian government is committed to accelerating economic growth, strengthening prosperity and equality between regions..
1. Domestic challenges
1. Dependence on exports of certain raw commodities sector makes the economy vulnerable to global price fluctuations and has an impact on economic growth
2. Economic inequality due to globalization is a major problem in several regions, especially those that have difficulty connecting to the global market. The impact is that economic growth tends to be slow, economic stability is hampered by social and political problems.
3. Environmental impacts due to the exploitation of natural resources that ignore environmental impacts such as deforestation, pollution, and climate change are taken seriously to ensure long-term sustainability
2. Global challenges
1. Geopolitical tensions have caused significant changes in the direction of economic policies of major countries to become inward looking.
2. The speed of technological development brings benefits to society in terms of production efficiency, but has an impact on massive employee reductions, savings energy, as well as problems in cybersecurity.
3. The response of mitigation and adaptation policies by developed countries to climate change has caused problems for many developing countries.
4. The possibility of a pandemic such as Covid-19 requires vigilance and preparedness
Fiscal policy is needed that will support the acceleration of national economic growth so that Indonesia can get out of the middle-income trap towards a Golden Indonesia 2045
UP
B. Innovative fiscal policy 2025
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Innovative fiscal policy is a solution in managing state revenues and expenditures to encourage economic growth. This policy can be implemented through reform, spending efficiency and strategic sector support, including
1. Utilization of information and communication technology (ICT) for efficiency of non-priority spending, improvement of governance, and enhancement of public services.
2. Strengthening human resources to encourage proper management of existing resources and potential
3. Increasing the added value of natural resources through policy refinement, improvement of management, and increasing added value
4. Optimization of BUMN (State-Owned Enterprises) dividends, taking into account profitability, regulations, and investor perceptions.
5. Subsidy and social protection reform to be more targeted and equitable
6. Infrastructure development to support economic transformation
7. Increasing people’s purchasing power through fiscal policy
Innovative Fiscal Policy Strategy
1. Tax reform
Focus on expanding tax base and increasing taxpayer compliance, innovative fiscal policies can be in the form of incentives for small and medium enterprises (SMEs) who want to expand their businesses, while increasing progressive taxes for more established and capital-intensive sectors
2. Investment in Green Infrastructure.
1. supporting economic transformation that encourages the development of environmentally friendly infrastructure in the form of:
2. subsidy incentives or tax cuts for companies that invest in renewable energy/green technology/sustainable public transportation increasing resilience to climate change
3. Strengthening Education and Health Sector Spending
In the long term, investment in this sector will be able to create a more competitive workforce, higher productivity and a more prosperous community life
4. Development of Digital Economy and Creative Industry
Improving digital skills and creative industry for the community is carried out through development of high-speed internet networks throughout the country, providing incentives for technology startups and training programs
5. Increasing the Efficiency of Public Spending
The government needs to ensure that every budget issued has a direct impact on improving the welfare of the community. For this reason, the use of technology is carried out to monitor and evaluate government projects in real time so that improvements can be made immediately if there are deviations/in-efficiencies
Fiscal Policy Strategy by Time Period
1. Short Term
Tax reforms include expanding the tax base, providing incentives to small and medium enterprises (SMEs), increasing progressive taxes for more established and capital-intensive sectors, increasing taxpayer compliance
2. Medium-long term
1. Progressive reform
2. Spending efficiency
3. Supporting strategic sectors such as education, health, green technology, and digital
4. Maintaining fiscal health
5. Encouraging an investment and export climate
6. Encouraging the Draft of State Budget to be more productive, efficient, resilient, and able to control risk
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B. Innovative fiscal policy 2025
State Revenue and Expenditure Budget
In the 2025 State Budget, the government has set the achievement of the budget deficit ratio to GDP in the last 10 years to be maintained at 2.53% or nominally Rp. 616.2 trillion. Investment financing in 2025 is Rp. 154.5 trillion
Benefits of innovative fiscal policy
1. Creating a conducive environment for investment
2. Encouraging innovation
3. Strengthening basic infrastructure
4. Increasing people’s purchasing power
5. Maintaining price stability
6. Reducing poverty
7. Reducing the prevalence of stunting
8. Accelerating infrastructure development
9. Strengthening institutional reform
10. Adjusting regulations
C. Monetary policy
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1. Bank Indonesia’s policy direction for 2025
1. Monetary policy:
Achieving inflation targets within the target range of 2.5±1% and stability of the Rupiah exchange rate while continuing to support sustainable economic growth
Prudential macro policy:
supporting sustainable economic growth while continuing to maintain the stability of the financial system
The main objectives of monetary policy:
1. Achieving economic stability, sustainable economic growth, and general public welfare,
2. Regulating job creation,
3. 3Minimizing unemployment
Policies include:
Careful interest rate cuts and strengthening:
1. synergy between the government and Bank Indonesia
2. digitalization of the payment system
3. stabilization of the Rupiah exchange rate, in the form of interest rate policy, open market operations, minimum reserve requirements,
4. provision of Bank Indonesia liquidity facilities (FLBI), currency intervention, macroprudential policies
5. availability and smoothness of the payment system
6. inflation control - ensuring inflation remains under control within the target of 2.5±1%
Coordination of Bank Indonesia’s policies with the Government’s policies also continues to be strengthened to maintain external resilience to global turmoil, control inflation, and encourage sustainable economic growth
SETTING UP BUSINESS IN INDONESIA
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C. Monetary policy
2. Strategic Steps to Control Inflation
1. Control inflation within the target of 2.5±1%
2. Maintain the stability of the Rupiah currency/exchange rate
3. Support sustainable economic growth
4. Strengthen the response mix of the monetary, macroprudential, and payment system policies
5. Direct monetary policy consistently
3. Blueprint of Indonesian Payment System (BSPI) 2025
1. Facilitate the transformation of Indonesia’s economy towards digital
2. Facilitate economic growth with a smooth payment system
3. Facilitate interoperability of payment system infrastructure and instruments for cross-border transactions
4. Government Support
The Government and Bank Indonesia continue to strengthening synergy and coordination for the future by:
1. establishing the 2025-2027 Inflation Control Roadmap
2. ensuring the affordability of food commodity prices and transportation rates
3. increasing food productivity
5. Monetary Policy Strategy
1. Medium-long term strategy:
focused on supporting socio economic, strengthening human resources, continuing the development of supporting infrastructure for economic transformation, down-streaming and green economic transformation to increase added value and sustainable growth, strengthening inclusiveness and institutions , simplifying regulations.
2. Short-term strategy.
focused on accelerating economic growth, strengthening well-being and inter-regional convergence.
Economic growth will be determined by the government’s ability to stimulate items that are sources of growth such as household consumption and investment.
A. World bank report on b-ready
The World Bank released the results of the Business Ready (B-Ready) Report 2024 which replaces the former Doing Business report. B-Ready offers an improve and more comprehensive look at the global business landscape, analyzing 1,200 indicators that track the lifecycle of firms over than 50 countries were studied in 2024.
The Business Entry topic measures the process of registration and start of operations referred to as pillars.
1. Regulatory framework:
the first pillar assesses the quality of regulations for business entry, covering de jure features of a regulatory framework that are necessary for the adoption of good practices for business start—ups.
2. Operational efficiency:
the second pillar measures the availability of digital public services and transparency of information for business entry.
3. Public services:
The third pillar measures the time and cost required to register new domestic and foreign firms.
The World Bank’s Business Ready (B-Ready) 2024 Report shows:
1. Indonesia’s ranking with a score of:
A. 64 in the Regulatory Framework pillar
B. 63 in the Public Services pillar,
C. 61 in the Operational Efficiency pillar,
Indonesia is the country with the third place in ASEAN after Singapore and Vietnam
2. Indonesia’s business climate has improved in terms of regulatory reform and simplification of licensing procedures, as well as transparency. However, in terms of public services, there are still gaps in access and efficiency of services to support business.
This report is very important for Indonesia as feedback on the improvement efforts made by the government in pursuing the economic growth target of 8% in 2029.
The Ministry of Investment and Downstream has prepared steps to improve the investment climate, especially in 3 prominent areas:
1. Improving public services through digitalization.
2. Regulations related to business, not only making it easier for entrepreneur but also businessman.
3. Involvement of the business community, workers’ associations, and other stakeholders, so that the ongoing reform process (regulations and policies) can be carried out transparently, understandably, and in accordance with consensus.
B. Business target The Indonesian government is directing investment policies for the 2025-2029 period to nine priority strategic sectors, including:
1. Downstream Industry,
2. New Renewable Energy,
3. Food Security (including Agriculture and Food Industry),
4. Health (including Pharmaceuticals, Medical Devices, Health Services),
5. Education (including Higher and Vocational Education),
6. Digital Economy (including Data Centers),
7. Semiconductors,
8. Export-Oriented Manufacturing Industry,
9. Indonesian Capital City (IKN).
C. Starting business in Indonesia - 2025
Business in Indonesia in 2025 is promising for the following reasons
1. Rapid development of the digital economy in terms of e-commerce, fintech, and digital services are growing rapidly.
2. Tax incentives for startups and Foreign Direct Investment (FDI) incentives.
3. The largest and fastest growing economy in Southeast Asia, attracting local and foreign entrepreneurs.
4. Indonesia has large domestic market, growing middle class and increasing purchasing power
5. Indonesia is the gateway to the ASEAN market, offering access to over 600 million consumers.
Business Strategy for 2025
1. Adopt technology for efficiency
2. Enhance HR skills and capacity
3. Collaboration and strong business ecosystem
4. Adopt flexible working patterns
5. Develop capabilities to respond to the unexpected
6. Embrace technology for sustainability
7. Sell AI-based products
8. Ensure legal compliance
9. Prepare your business for growth
10. Protect your data
D. Investment incentives The Indonesian government provides tax incentives and other incentives to attract foreign investment, encourage entrepreneurship, and stimulate industrial development.
1. Tax incentives – intended for:
1. Attract entrepreneurs, employees, and MSMEs to anchor in the Indonesian Capital City (IKN)
2. Support positive economic growth in the community, in form of:
(1) Free final PPh (income tax) on interest income
(2) Final PPh rate of 0% for DHE placement instruments with a term of 6 months or more
(3) Final PPh rate of 2.5% for DHE placement instruments with a term of 3 months to less than 6 months
(4) Final PPh rate of 5% for DHE placement instruments with a term of 1 month to less than 3 months
2. Other incentives
1. DHE incentives converted into rupiah can be a reduction in the portion of the DHE placement obligation
2. Financial incentives for young people who are willing to live and work in villages, in the form of housing subsidies, education scholarships, or low- interest business loans.
3. Credit interest incentives are given to exporters who store DHE for at least 1 year in the country DHE (Devisa Hasil Ekxpor) is an incentive given by the government to exporters who keep export proceeds (DHE) domestically. This incentive is in the form of tax relief and credit interest.
Other benefits of using DHE
1. as collateral for rupiah credit from banks or the Indonesian Export Financing Institution (LPEI)
2. for payment of state levies such as taxes, royalties, and dividends
An Introduction to Doing Business in Indonesia 2023 covers the following:
A. Corporate establishment;
B. Human resources and payroll;
C. Tax and accounting;
D. Audit and compliance.
Topic Feature
A. Corporate establishment
Continued on the next page
Requirement and Process of company registration based on Type of Legal Entities:
• Local Company, Foreign Direct Investment Company known as a Limited Liability Company, and Representative Office.
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.
Local Company (PT) is the most common legal entity in Indonesia
Even though a local company is intended for Indonesian citizens only, there are some circumstances under which a foreign investor can incorporate a local company in Indonesia as well.
Registration Process of a Local PT
Step 1
Company Name Application
Submit your company name to the Ministery of Law & Human Rights
Step 2 Article of Association Preparation
This requires presence of notary
Step 3 Deed of Establishment Approval
Approved by The Ministery of Law & Human Rights
Step 4 Certificate of Domicile Acquisition
Obtained form local government to show business location
Step 5 Tax Payer Registration Number (NPWP) Application to secure other licenses, banking activities, and fulfilling tax obligations
Step 6 Application of NIB
Alongside NIB, Business Licenses and Location Permit will also be granted one day following the registration via OSS
Benefits of a Local Company in Indonesia for Foreigners
Even though there are other legal entities particularly designed for foreigners — a limited liability foreign-owned company and representative office — starting a local company might bring more benefits to some foreign entrepreneurs.
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A. Corporate establishment
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The Negative Investment List is a document that regulates foreign ownership of businesses based on business sectors they operate in. Thus, some business activities are fully closed to non-domestic investors, and some are partially limited. On the other hand, a local company is not a subject to this regulation, and it might be the only choice how to start a business in Indonesia in your field.
In comparison with a foreign-owned company, the paid-in capital of a local company is much lower. In general, it ranges from IDR 50,000,000 up to more than IDR 10,000,000,000. The amount of the capital defines the size of the company, which further determines whether a company is eligible to sponsor a work permit for a foreign worker (and how many).
• Small : IDR 50,000,000 – 500,000,000
• Medium : IDR 500,000,001 – 10,000,000,000
• Large : above IDR 10,000,000,001
A foreign-owned company in Indonesia, known as PT PMA, has been designed to meet the needs of foreign entrepreneurs. On the contrary to the incorporation process of a local company or a representative office, establishment of a foreign-owned limited liability company (LLC) in Indonesia might be more challenging and time-consuming.
The Negative Investment List stipulates the maximum allowed foreign ownership in particular business sectors, causing some industries to be fully closed or only partially open to foreigners. Therefore, having an expert partner in Indonesia or engaging professional assistance becomes a critical point to succeed when forming an international company in Indonesia.
Foreign-owned limited liability company is a legal entity that can be fully owned by foreigners. However, the maximum foreign ownership is determined by the business sector and business activities. The restrictions are listed in a regulation called the Indonesian Negative Investment List.
Establish a PT PMA Company: The Procedures.
Step 1
Approval of Company
It should consist of three words that are not vulgar or obscene
Step 2 Deed of Incorporation
Step 3
It should include an Asticle of Association, and a notary must be present
After submission of Deen of Incorporation by the notary, the Ministery of Law and Human Rights will give approval
Step 4 Registration of Tax ID (NPWP)
A valid NPWP is required for securing other company’s licenses, banking activities, and fulfilling tax obligations
Step 5 Domicile Letter
Required to show the location of your business
Step 6 Application of NIB
Alongside NIB, Business Licenses and Location Permit will also be granted one day following the registration via OSS
Step 7 Application of Others Licenses
Depending on the business sector, additional licenses such as commercial license and tourism license may be required before operation
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A. Corporate establishment
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Although the establishment process is more demanding, foreign-owned companies offer vital benefits that entirely compensate the previously invested time and efforts.
a. Employment of Foreign Workers
b. A foreign-owned company can sponsor and issue work permits as well as stay visas (working ITAS) for its international employees.
c. Furthermore, this kind of company is allowed to sponsor business visas of its business partners and clients arriving in Indonesia for a short stay.
d. Full International Ownership
To attract more foreign investors and multiple investments critical to the Indonesian economy, Indonesia has been relaxing the limited foreign ownership lately.
Wholly-owned foreign companies became less rare, and it is, therefore, likely that you can start an international company without any partnership or local shares of your property.
Commonly considered as a branch of parent company overseas, it can be your first step to enter the Indonesian market. The purpose of this legal entity is marketing activity, preparing the establishment of PT PMA, or conducting market research. No direct selling or generating revenues is allowed.
Registering a Representative Company in Indonesia
A representative office means market presence without large capital investment.
The primary purpose of representative offices in Indonesia is testing the water before the actual company incorporation.
Furthermore, a representative office might conduct market research, approach potential clients and build brand awareness of your business. However, no activities that generate profit are allowed, and this is the prominent factor that distinguishes a representative company in Indonesia from other legal entities.
Registration Process of a Representative Office in Indonesia
Step 1: obtaining a representative office (KPPA) license
Step 2: obtaining domicile letter from the local subdistrict
Step 3: applying for taxpayer registration number (NPWP)
Step 4: getting a company registration certificate (TDP)
The Benefits of Representative Office in Indonesia
a. Low Incorporation Cost
As mentioned, a representative office (RO) is an affordable way of how to penetrate the market in Indonesia. Whether you are not sure about your target audience or the presence of business partners, these companies will help you to understand the Indonesian market properly.
b. Visa Sponsorship
Even though representative offices are not permitted to generate revenues, they are entitled to sponsoring work and stay permits for their foreign employees. Moreover, an RO can sponsor a business visa for business partners coming to Indonesia.
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A. Corporate establishment
To establish a representative office in Indonesia might be the most feasible solution for many entrepreneurs due to its lenient corporate structure. As opposed to a foreign company no shareholder or director is required, and only one chief executive is sufficient.
Currently, four types of representative offices are available:
a. KPPA: General RO of a Foreign Company
b. KPPPA (known as KP3A or K3PA): RO of a Foreign Trading Company
c. BUJKA: RO of a Foreign Construction Service Company
d. KPPA MIGAS: RO of a Foreign Oil and Gas Company
B. Human resources & payrol
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Indonesian Employment Law And Covid-19:
As a result of the serious economic disruptions from COVID-19, there are several options available to employers under Indonesian employment law, as follows:
a. If employees freely agree to the employer’s proposal to salary cuts and/or unpaid leave, that agreement should be recorded in writing.
b. If there is a union at the company then the employer must consult with and secure the approval of the union for any agreed salary cuts and/or unpaid leave.
c. If employees decline to agree to salary cuts and/or unpaid leave, the employer can seek to encourage agreement by implying that employees who do not agree to the proposed changes could potentially be made redundant, subject to a mutual termination agreement (“MTA”) or, if disputed, approval from the labor court.
It is important to secure the consent from each employee for proposed salary cuts and/or unpaid leave. The agreement with employees must be signed in the Indonesian language. A dual-language form of the agreement can be drafted but the prevailing language must be Indonesian. If the agreement is not signed in the Indonesian language, there is a risk that it could be considered null and void if disputed in the courts.
The central government and regional governments have not issued any impending regulations with regard to the termination of employment, specifically during the COVID-19 pandemic. Companies should therefore, follow the regulations stipulated in the Labor Law.
There are a number of different scenarios employers might consider in response to COVID-19 as follows:
a. The complete closure of the business.
The business is no longer financially viable and the redundancy of all the employees, or laying off only a portion of the workforce. Considerations include the following:
1. Under the Indonesian Manpower Law, terminations for efficiency basically can be done only when there is a closure of the business (including partial closure or a reduction of overall business activities), either preceded with or without losses for two consecutive years (this is relevant for determining termination entitlements).
2. Whether a force majeure event would be an acceptable reason for employee terminations with minimal severance payment.
3. If the business is not being shuttered, employee terminations can still be done but only with the express written agreement of employees by way of a mutual termination agreement (“MTA”).
4. Without an MTA the proposed terminations will be deemed as being disputed and can only be settled through the labor court, a process that can take six months or more, during which the employees’ salaries must be paid.
SETTING UP BUSINESS IN
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B. Human resources & payrol
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5. Indonesia does not recognize the concept of notice of termination. Unless an MTA is reached, the lengthy and costly termination process for permanent employees is as follows:
a) The parties (the employer and employees, or if applicable, a labor union) are required to meet in an attempt to reach an amicable termination settlement, a process known as bipartite negotiation.
b) If a settlement is reached, an MTA should be executed and registered at the relevant labor court;
c) If negotiations fail, either the company or the employee may file the dispute with the relevant manpower affairs office. The manpower office will ask both parties whether the dispute should be resolved through conciliation with private conciliators or mediation with a mediator from the manpower office.
d) If the non-binding written recommendation of the conciliator or mediator is rejected, the matter must be brought by either party to the relevant labor court to approve the termination and the benefits payable in connection with the termination.
e) If the labor court decision is appealed the case then goes to the Supreme Court.
b. Statutory Severance Requirements
1. For contract/fixed-term employees:
The balance of the contract must be paid to fixed-term employees terminated before the end of their fixed-term employment agreement.
2. For permanent employees:
A permanent employee’s entitlement in connection with termination of employment depends on their years of service and the circumstances of the separation. The categories of possible separation entitlements under Article 156 of the Manpower Law consist of:
a) severance pay of up to nine months’ wages,
b) service pay of up to 10 months’ wages, and
c) other compensation (ie, for unused annual leave, any applicable relocation costs or expenses, compensation for housing, medical and hospitalization, and other separation benefits as may be agreed).
Under the Indonesian Manpower Law, in the event of terminations as a result of the company closing down due to two consecutive years of continuous losses or due to force majeure, terminated permanent employees are entitled to single severance pay, single service pay, and compensation
In the event of terminations for downsizing due to efficiency reasons (ie, not due to financial losses or force majeure), terminated permanent employees are entitled to double severance pay, single service pay and compensation.
Note that an ex gratia payment of two to three months’ salary on top of the permanent employee’s mandatory severance entitlements may be necessary to ensure the mployee signs an MTA to avoid the costly labor court process..
1. Worker/Labor Protection and Business Continuity for the Prevention and Control of COVID-19.
Under the circular – Letter of Republic of Indonesia Ministry of Manpower No. M/3/HK.04/III/2020 on Worker/Labor Protection and Business Continuity for the Prevention and Control of COVID-19 – employers must continue paying the full wages of employees working from home unless an agreement between the two parties says otherwise.
Employees who are under the ODP (monitored) status will still be entitled to full salaries. An ODP status means the person has a travel history of entering a COVID-19 hotspot and came in contact with possible COVID-19 patients, and thus have to go into self-isolation.
Employees who are under the PDP status (surveillance) are those that have displayed symptoms of COVID-19, such as fever, respiratory problems, and dry coughs and are undergoing self-isolation – they will be categorized as being on sick leave. The company will then have to adhere to the Law No. 13 of 2003 (Labor Law).
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Under the Labor Law, the employee on sick leave is entitled to:
a. 100 percent of wages during the first four months of sick leave;
b. 75 percent of wages during the second four months of sick leave;
c. 50 percent of wages during the third four months of sick leave; and
d. 25 percent of wages during each subsequent month of sick leave (until the termination of employment is agreed upon).
In essence, companies cannot make wage deductions beyond those agreed upon by employers and employees in their respective work contracts. This can be excluded if the clause regarding wage deduction is prescribed in a work contract, collective agreement or the company regulations. This wage deduction also applies to certain conditions, such as fines, compensation, and advance payment of wages.
Although, based on the Circular of the Minister of Manpower No. M/3/HK.04/III/2020 regarding Worker/Labor Protection and Business Continuity in the Context of Preventing and Countering Covid-19, it mentions that for companies that limit business activities by considering business continuity, changes in wage levels and ways of payment can be made in accordance with agreement between the company and their employees. However, this does not have a strong legal basis, which may lead to industrial relations disputes, where dispute of rights are defined in Article 1 number 2 of Law No. 2 of 2004 regarding Industrial Relations Disputes Settlement:
“dispute of rights refers to a disput which occurs due to the non-fulfillment of rights because there is inconformity between the implementation or interpretation of provisions under laws and regulations, employment agreement, company regulation, or collective labor agreement.”
THR is a part of non-wage income. As is the case in a wage, the company shall also pay the THR to employee(s) at least 7 (seven) day before the Religious Holiday. THR is regulated in a number of regulations including Government Regulation No.78 of 2015 concerning Wages and Regulation of the Minister of Manpower (GR No.6 of 2016 concerning THR for employees in the Company).
As per the Minister of Manpower Regulation No.20 of 2016 concerning Procedures for Granting Administrative Sanctions, companies who fail to pay on time or does not pay THR to employees may be subject to consequences in the form of fines or administrative sanctions with accordance to the prevailing laws and regulations. However, for companies that have difficulty paying THR amid Covid-19, they can open a dialogue with employees to reach agreement on other options in paying the THR to employees. The company can propose a suspension of THR payments up to a mutually agreed period or the company can pay THR in stages to employees
4. Postponement Of Employees’ Minimum Wages For The Protection Of Employees’ Right Companies arefacing issues such as low running income, disrupted production, but the burden of expenditure is keeping the business world on the verge of mass bankruptcy. With the economic decline, companies may not be able to pay finance expenses without any income including their employees’ wages by the end of June 2020.
It is stipulated in Law No.13/2003 that the employer is prohibited from paying the employees’ wages lower than the minimum wages. However, an employer who is unable to pay the minimum wages can ask for a postponement for the payment of minimum wages to their employees. This postponement of the payment of minimum wages is explained in Article 90 paragraph (2) of Law No.13/2003 wherein the specific article .
The postponement of the payment of minimum wages by a company that is financially unable to pay minimum wages is intended to temporarily release the company from having to pay minimum wages for a certain period of time. If the postponement comes to an end, the company is then under an obligation to pay minimum wages that are applicable at the time of postponement, where the remaining wages that were not paid during the postponement period will be paid to the employee (aggregate amount of remaining wages for the postponement period) subsequent to the end of postponement period.
The procedure for the postponement of the payment of minimum wages is regulated in Minister of Manpower and Transmigration Decree No. Kep.231/ MEN/2003 concerning Procedures for Postponing the Application of the Minimum Wage. The application for the postponement of the minimum wage payment obligation must be submitted by the employer to the Governor through the provincial Manpower Office no later than 10 (ten) days before the minimum wage is implemented effectively The application itself must be made in the form of a written agreement between the employer and the employees/labor union, which was made pursuant to an in-depth, honest, and open negotiation between the 2 (two) parties.
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Thus, if the employer is in financial distress due to the Covid-19 outbreak and has not been able to pay his employees’ wages according to the minimum wage, then the employer can postpone payment of wages by first negotiating with the employees or worker union/ labor union. However, the postponement of payment of the minimum wage by employers to employees does not eliminate the obligation of employers to pay the difference in minimum wages during the postponement period (where the remaining amount of wages that was postponed must be given to the employee after the end of the postponement period).
In a bid to provide certainty to tax and fiscal during COVID-19 pandemic, the Government has issued Government Regulation Number 29 of 2020 on Income Tax Facilities to Address Corona Virus Disease (Covid-19). The statement was made by Taxation Regulation Director II Yunirwansyah in a virtual
Media Briefing on Taxation on Thursday (25/6), in Jakarta.
Taxpayers who support the Government’s efforts in tackling COVID-19 pandemic are eligible for income tax facilities. Based on the Regulation, the Government provides 5 tax facilities; among others:
1. Indonesian Resident Taxpayers (WPDN) who produce medical equipment and/or Household Health Supplies (PKRT) to handle COVID-19 are entitled to an additional reduction in net income by 30 percent of the costs incurred. The medical equipment includes of N95 surgical masks and respirators, body protection, medical disposable ventilators, and diagnostic test reagents for Covid-19. Meanwhile the PKRT may include antiseptic hand sanitizers and disinfectants.
2. For taxpayers who give donations to address COVID-19, the donations can be deducted from gross income. These donations must be supported by the receipt of donations and received by charitable institutions that have Taxpayer Identification Numbers (NPWP) such as National Disaster Management Agency (BNPB), Regional Disaster Management Agency (BPBD), Ministry of Health, Ministry of Social Affairs, or charitable institutions. However, the deduction must either follow provisions of Government Regulation Number 29/2020 or Number 93/2010.
3. In Government Regulation Number 29 of 2020, the donations may be given to the BNPB, BPBD, Ministry of Health, Ministry of Social Affairs, or charitable institutions that have the NPWP. The charitable institutions are obliged to report the donations. In this regard, donations may be given in the form of money, goods, and others.
4. Donations that have been deducted as a reduction in gross income under Government Regulation No. 93 of 2010, cannot be further reduced under Government Regulation Number 93/2010. The taxpayers must choose between Government Regulation Number 29 or Number 93
5. The Regulation also states that individual taxpayers that are health workers and assigned to provide health services to address Covid-19 will receive additional income from the Government in the form of honoraria or other benefits.The additional income is subject to final Article 21 Income Tax withholding at a rate of 0 percent.
6. The health workers consist of medical staff and health support staff including cleaners, administrative staff, morticians, ambulance drivers, and other supporting staff.
7. Income of taxpayers in the form of the Government’s compensation and reimbursement for the use of assets based on Government Regulation
8. Number 34 of 2017 is subject to a final income tax of 0 percent.
9. Taxpayers of publicly-listed company who are willing to buyback shares traded on the stock exchange are entitled to a 3 percent lower rate. Thus, 40 percent of their shares will be traded on the Indonesian Stock Exchange (BEI) or owned by at least 300 parties. Each party may only own shares of less than 5 percent of the total issued and fully paid shares within a minimum of 183 calendar days within a tax year. The parties do not include publicly-listed company taxpayers that repurchase their shares and/or are affiliated. The taxpayers are considered meeting these requirements once they received appointment and approval from the Ministry/ Financial Services Authority (OJK). The share buyback is carried out from 1 March until 30 September 2020. The share can only be owned until 30 September 2020. They are obliged to submit report of share buyback in their Annual Tax Returns (SPT). (Ministry of Finance/EN)
(Source: Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation Date 26 Juni 2020)
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Tax Developments In Response To Covid-19
Tax-related measures introduced in Indonesia in response to the COVID-19 pandemic are regulated under Ministry of Finance (MoF) Regulation No. 86/PMK.03/2020 and MoF Regulation No. 110/PMK.03/2020 on Tax Incentives for Taxpayer Affected by the Coronavirus Outbreak, and Government Regulation in Lieu of Law (Perppu) no 1 year 2020.
For the months of April – December 2020 for employees who:
• receives income from a qualified employer (There are 1,189 categories of industries and companies, those listed in the Attachment A of MoF No. 86/PMK.03/2020)
• has a Tax ID number (NPWP)
• receives an annualized regular gross income not exceeding IDR 200 million. Bonus and Religious. Holiday Allowance are not included in calculating the threshold.
The employer should give the Art. 21 income tax as additional payment to the employee.
The taxpayer should prepare e-billing with notes “employee income tax is borne by Government based on MoF 86/PMK.03/2020.”
Tax Developments In Response To Covid-19
Tax-related measures introduced in Indonesia in response to the COVID-19 pandemic are regulated under Ministry of Finance (MoF) Regulation No. 86/PMK.03/2020 and MoF Regulation No. 110/PMK.03/2020 on Tax Incentives for Taxpayer Affected by the Coronavirus Outbreak, and Government Regulation in Lieu of Law (Perppu) no 1 year 2020.
Article 21 Employee Income Tax
For the months of April – December 2020 for employees who:
• receives income from a qualified employer (There are 1,189 categories of industries and companies, those listed in the Attachment A of MoF No. 86/PMK.03/2020)
• has a Tax ID number (NPWP)
• receives an annualized regular gross income not exceeding IDR 200 million. Bonus and Religious. Holiday Allowance are not included in calculating the threshold.
The employer should give the Art. 21 income tax as additional payment to the employee.
The taxpayer should prepare e-billing with notes “employee income tax is borne by Government based on MoF 86/PMK.03/2020.”
Article 22 Income Tax on Imports
can be exempted for companies who:
• have a business classification stated in that is among those listed in the Attachment H of of MoF No. 86/PMK.03/2020 (there are 721 specific
• industrial fields or companies that have been granted KITE (Import Facility for Export Purposes)).
• Qualified taxpayers must apply for this incentive via DJP Online website. If approved, the DJP Online system will issue a Tax Exemption Letter (SKB) that is valid starting from the issuance date up to and including 31 December 2020.
The taxpayer should submit realization letter to DGT (three months period for April – June 2020), realization letter should be submitted on 20 July 2020 at the latest and on the 20th of the following month thereafter, through DJP online with specific format that can be uploaded from DJP online.
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Article 25 Income Tax
• 50% reduction of the Article 25 Monthly Tax Installments for qualified taxpayers (1,013 specific industrial fields, listed in the Attachment M of MoF No. 110/PMK.03/2020) is provided.
• 50% reduction of the Article 25 Monthly Tax Installments for qualified taxpayers (1,013 specific industrial fields, listed in the Attachment M of MoF No. 110/PMK.03/2020) is provided.
• This reduction in tax installments is valid until the tax period of December 2020.
• Qualified taxpayers must inform the tax office that they are utilizing this incentive via DJP Online website.
• The government will automatically consider qualified taxpayers (listed in the Attachment P of MoF No. 86/PMK.03/2020) as low-risk and provide a preliminary VAT refund facility for the fiscal periods April through December 2020.
• Applicable for VAT returns (including amendments) that are submitted before 20th January 2021 with overpayment status, with a maximum amount of IDR 5 billion (per month).
• Taxpayer is not in the preliminary evidence audit position and did not perform any criminal actions during the last five years before VAT return submission.
• On 31 March 2020, the Indonesian government issued the Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang- Undang/ Perppu) No.1 Year 2020 (the regulation) which purports to apply new measures to the digital economy.
• On 16 May 2020, Perppu 1/2020 was passed into Law No. 2 Year 2020. The new law imposed tax on over-the-top electronic transaction. This tax is imposed on foreign traders, foreign service providers, and / or trade operators through an overseas electronic system (PMSE) that cannot be designated as a permanent establishment (BUT). The issuance of these regulations occurred in the context of the Indonesian government’s response to Covid-19.
• Starting July 2020, PER-12/PJ/2020 imposes 10% VAT to the provision of intangible goods and services through an e-commerce system by nonresidents for consumption in Indonesia.
• The obligation to register and account for VAT applies to foreign e-commerce providers (including foreign platforms, foreign individuals and digital companies). Foreign e-commerce providers are entitled to appoint a representative in Indonesia to fulfil their tax obligations.
On-line platform operators may wish to verify their VAT obligations in Indonesia.
• The obligation to collect VAT from payments made by Indonesian buyers and customers is the responsibility of the e-commerce business providers (either e-commerce foreign or domestic providers, or offshore traders). The Indonesian tax office will appoint the e-commerce business providers as VAT collectors if the transactions satisfy certain thresholds in the Indonesia market.
E-commerce marketplace providers will be appointed as VAT Collectors if their activity in the Indonesian market meets either of the following thresholds:
• transaction value with customers in Indonesia exceeding IDR 600 million in a year or IDR 50 million in a month;
• access to their e-commerce platform from Indonesia exceeds 12 thousand users in 12 months, or one thousand users in one month.
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C. Tax and accounting Other tax measures
• MoF Regulation No. 125/PMK.010/2020 on import Value Added Tax (VAT) for newsprint paper and/or magazine paper, borne by the 2020 state budget until December 31, 2020
• Liquefied Natural Gas or LNG has been added to list of products the imports of which will no longer be charged with VAT : Government Regulation No. 48/2020 on the amendment to Government Regulation No. 81/2015 on the import and/or submission of taxable strategic goods that are exempted from added value taxes,
• MoF Regulation No. 96/PMK.010/2020 on the amendment to MoF Regulation No. 11/PMK.010/2020 on the implementation of Government Regulation No. 78/2019 on Income Tax Facilitation for Investment in Certain Business Fields and/or Certain Regions. The regulation effectively gives the Indonesia Investment Coordinating Board (BKPM) the authority to determine the eligibility of companies for the tax allowance as the application must now be done through the BKPM’s Online Single Submission (OSS) system. This regulation came into effect starting August 10, 2020.
1. Business or taxation Incentives
Taxes borne by the government such as reduction in article 25 (corporate income tax), exemption from income tax Article 21 (employee income tax), Article 22 on imports tax, and preliminary VAT refunds.
2. Ministries & Regional Governments
Almost 35% of Ministeries & Regional government budget has been allocated to boost tourism sector, food security and fisheries, industrial estates, ICT development, Central Government loan to regional governments, and anticipating economic recovery.
1. Companies/individual need to obtain an Ease of Import for Export Purposes (KITE) under certain Business Classification Code (KLU) in the Attachment MoF No. 110/PMK.03/2020.
2. Exemption of Income Tax Article 22 on Import Tax and purchases of the aforementioned goods by agencies/government institutions, referral hospitals, and other parties designated to assist in handling the COVID-19 outbreak as mentioned in appendix I of 86/PMK.03/2020 (PMK 86/2020).
3. Preliminary VAT refund for low-risk Taxable Entrepreneur (PKP) who submits an overpayment of VAT Tax Return overpayment for April – December 2020 tax period up to IDR 5 billion per month.
4. An exemption of Income Tax Article 21 on Employee Income Tax with annual gross income up to Rp200 million. Taxpayer should prepare e-billing with notes “employee income tax is borne by Government based on PMK 86/2020.
Investors should be paying attention to Company Law, Investment Law and Market Law.
1. The Company Law
a. Foreign investors should understand, which sets outs the requirements for audit compliance and preparing financial statements. Other important and relevant laws are the Investment Law and Capital Markets Law.
b. If a company’s fiscal year differs from the calendar year, then their deadline for reporting and paying corporate income tax is four months after the end of their fiscal year.
c. There is currently no single unifying regulation on auditing and compliance in Indonesia. Foreign investors will need to be aware that regulations regarding auditing, accounting, and financial reporting are stipulated over several laws and bylaws, and that a good understanding of these can ensure their business stays compliant.
d. Investors should use the services of registered local advisors to make sure they understand the prevailing regulations.
2. The Investment Law
Lys out of the basic requirements on how to operate in Indonesia. These are part of key compliance norms:
a. Implementing good corporate governance;
b. Undertake corporate social responsibility activities;
c. Comply with the labor law;
d. Submit quarterly investment activities to the Investment Coordinating Board (BKPM);
e. Honor the cultural traditions of communities.
f. Criteria for the company to be audited
g. Companies with assets exceeding 50 billion rupiah (US$3.6 million);
h. Public companies;
i. Companies that issue debt instruments;
j. The company is a state-owned enterprise; or
k. The company collects or manages public funds (such as banks and insurance companies).
The National Economic Recovery (PEN) Money Market Deepening Blueprint (BPPU)
PPKM (the public mobility restriction)
Job Creation (UUCK)
The Investment Coordinating Board (BKPM) Micro, Small and Medium Enterprises (MSMEs). Government Bonds (SUN
Indonesian Crude Price (ICP) Capital Adequacy Ratio (CAR)
The Indonesia Financial Services Authority (OJK) Indonesia Deposit Insurance Corporation (LPS) PMK (Finance Ministerial Regulation)
G2P social aid program (bansos)
DGT : Directorate General of Taxation - The Ministry of Finance
JCI : the Jakarta Composite Index
DPK: third-party funds (in bahasa: Dana Pihak Ketiga)
ICP: the Indonesian Crude Price (ICP) ‘
FDI: Foreign Direct Investment Company
The Investment Coordinating Board (in bahasa Badan Koordinasi Penanaman Modal) Foreign Investment Company (in bahasa Pnanaman Modal Asing)
Trading Representative Office (“TRO”) : an Indonesian or foreign national appointed by a foreign company or an overseas company group as representative in Indonesia for promotion and marketing of the company’s products in Indonesia.
Foreign Representative Office (“FRO”) : The FRO is led by one or more Indonesian or foreign citizens being appointed by a foreign company or an overseas company group as representative in Indonesia to carry out the following activities: Handling interests of the company or its affiliated company; and Preparing the establishment and business development of a foreign investment company operating in Indonesia or another country
LLC : Limited Liability Companies in bahasa Perusahaan terbatas) Public Company (Perseroan Terbuka)
The Workers Social Security Program (in bahasa BPJS)
Construction Representative Office (in bahasa -Badan Usaha Jasa Konstruksi Asing –“BUJKA”)
T he List of Business Fields (in bahasa –Daftar Negatif Investasi) Permanent Stay Permit/ Card (in bahasa KITAP = Kartu Izin Tinggal )
This guide has been prepared by KAP DJOKO, SIDIK & INDRA, an independent member of Antea
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