Business Setup in Indonesia
There are several ways to break into the Indonesian market, but finding the setu...
Get to know more about business processes and requirements when it comes to running a company in Indonesia. If you cannot find an answer here, we will be happy to answer your questions directly.
Can I set up a company in Indonesia as a foreigner?
Are there options to expand my business without incorporating a company in Indonesia?
Yes, particularly for export and import business, you can use a service called undername import.
What are the common company types in Indonesia?
Depending on your business requirements, preferences, and the nature of your business. there are 3 company types you can choose
What kind of company is the best for me: a foreign-owned company, local company, or representative office?
It all depends on the nature of your business and the purpose of your business incorporation. Consult with us if you are not sure.
When do I have to deposit money in the bank?
Will the government check if I have fulfilled the investment plan of IDR 10,000,000,000?
Is a foreigner able to become a director or commissioner?
Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner.
Can I use a business visa to work in Indonesia?
No, you cannot. Business visa can only used for business purposes such as attending business meetings, seminars, exhibitions, or training.
Is KITAS/ITAS extension possible in Indonesia?
Of course. Your ITAS can be extended for up to five years.
What are the requirements for an Investor KITAS/ITAS application in Indonesia?
To be eligible, you need to have a minimum of IDR 10 billion in authorized capital, IDR 10 billion in paid-up capital, and IDR 1 billion in personal shares.
What are the requirements for a Retirement KITAS/ITAS application in Indonesia?
You will need to be at least 55 years of age and will not work to earn income in Indonesia. Consultation on further requirements is necessary.
What is an Indonesia Family KITAS/ITAS? Can I work in Indonesia under this stay permit?
An Indonesia Family KITAS/ITAS is issued to family members. They can be a spouse and/or children under 18 years of age. It is illegal to work in Indonesia with a Family KITAS/ITAS. To work legally, a Work ITAS is required.
How easy is it to obtain a business visa or work visa?
Difficulty level depends on your country of origin. Indonesia has a list of restricted countries, including Afghanistan, Guinea, Israel, North Korea, Cameroon, Liberia, Niger, Nigeria, and Somalia. Citizens from those countries will find the process complicated and difficult and with a high possibility that their application will be rejected.
Who can be my visa sponsor?
For business visa and work visa, the sponsor has to be a company legally registered in Indonesia.
Regarding social-cultural and retirement visa as well as KITAS & KITAP, the sponsor must be either an Indonesian legal entity or citizen. Cekindo provides visa sponsorship should you require this service.
How long is the visa application process and for how long will my visa be valid?
The duration depends on the visa type.
Should I submit tax reports if my company has been established but currently does not have any business activities?
Will having a tax ID but never submitting tax reports cause a problem to my company?
What are the obligations related to payroll?
Health Insurance and Social Security Insurance (BPJS) are mandatory. Certain percentage will be borne by the company and the employee respectively. Other obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get the information on your specific field.
What are the deadlines for annual tax return?
The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information to be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia.
What are the regulations on products distribution in Indonesia?
Before you can distribute your products in Indonesia, you will have to register your product with the BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). Only an Indonesian legal entity can register the product. If you decide to distribute your product via a local distributor, they will register the product under their entity in Indonesia and become the product license holder. Cekindo can act as your local distributor and register the product under its name.
Is it safe to register a product under a local distributor?
What if my product has been registered under a local distributor and I decide to transfer the license to my company or another distributor?
What requirements are needed if my Indonesian company will register the product?
You need to register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months.
If my company is Halal certified for Europe or Malaysia, does it mean it is also halal certified for Indonesia?
Do all the products sold in Indonesia need to be halal registered?
Yes, if they are halal. Law no. 33 of 2014 states that all halal products distributed in Indonesia that are not halal certified will be considered as non-halal since October 2019. Further information can be found in Halal Certificate Registration with Cekindo.
What are the standard regulations regarding employment in Indonesia?
How does HR outsourcing mechanism work?
What taxes are involved?
How does Cekindo’s recruitment outsourcing mechanism work?
What needs to be included in an employment background check?
These are a few things you need to examine while performing an employee background check:
How many types of employment and hiring options are there in Indonesia?
What are the non-wage compensations that employers in Indonesia usually provide to their employees?
What other things should be considered when it comes to hiring local and foreign employees in Indonesia?
Looking for more answers? Get in touch with us by filling in the form below. Or, visit our offices in Jakarta, Bali and Semarang.