Business and income taxation in Indonesia
Like many emerging economies, Indonesia practices self assessment income tax structure where tax residents have to pay tax based on their global income. This means that they are subject to tax regardless of whether they earn their income within the country. The main taxes are those imposed by the federal government that include income tax, value added taxes, property tax imposed on real estate and buildings and others. Read more
Options for business operations in Indonesia
For foreign companies, there are various options when it comes to setting up your businesses in Indonesia. A representative office would be the easiest and simplest to set up. This is where it is cheaper and definitely quicker to set up as compared to other configurations. Basically, a representative office or RO has a narrow set of activities as compared to a full fledge company. Basically ROs act as the eyes and years for the local market representing the head office which are in another country. Read more
Is it difficult to start a business in Indonesia?
According to the rating in the World Bank’s Doing Business study, Indonesia is considered to be moderate when it comes to starting a business. In the 183 economies the World Bank evaluated, Indonesia is ranked at 122 which is the bottom 100 of the list. In terms of starting a business, it is at number 161 which means that it is quite hard in terms of application and such. This is due to the time taken and the steps involved in registration of businesses. Read more
What you need to know to start a business in Indonesia
First of all, you have to understand the Indonesian culture and people. It will be very helpful if you understand or speak some of the language as it would be a useful tool in any business dealings. Never go into the market cold turkey and get a feel of the market before doing anything. If you have doubts, put your plans on hold. It is always better to take a step back instead of pushing forward blindly, after all it is a foreign country you are embarking your business into. So better be sure. Read more
Starting a business in Indonesia
Starting a business is easy, it is only in the starting of businesses in a foreign country which could sometimes be quite a challenge. So if you are planning to set up an operation in Indonesia, there are some things which you must seriously consider before heading out to the country so that you will not waste too much time on the procedures and any processes which might be time consuming. Read more