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ASEAN's largest economy with growing middle class
Region
ASIA PACIFIC
Corporate Tax
22%
Setup Time
3 weeks
Currency
IDR
Indonesia, the world's largest archipelago nation with 280 million people, offers access to ASEAN's largest economy. Company registration involves navigating local requirements, but the market scale supports business setup for committed regional players.
Jakarta dominates as the economic center, with Bali offering expatriate lifestyle popularity. Indonesian (Bahasa Indonesia) is the official language, with English limited outside business circles. The tropical climate is consistently warm and humid.
Healthcare varies significantly, with quality private facilities in Jakarta but limited services elsewhere. Safety is generally acceptable with normal precautions. The cost of living is low, with significant variation by location.
The diverse cultures across thousands of islands create unique but complex operating environments.
Corporate tax rate stands at 22%. Personal income tax reaches 35%. VAT applies at 11%. The regulatory environment has modernized through omnibus law reforms but remains complex.
The Indonesian rupiah is managed by Bank Indonesia. The large domestic market drives growth. Foreign investment restrictions apply to various sectors through negative investment list, though this has been liberalized.
Company registration involves establishing a PT (Perseroan Terbatas). Foreign ownership is permitted for most sectors through PT PMA structures requiring Investment Coordinating Board (BKPM) approval. Local partnerships may be required for restricted sectors.
Company formation takes approximately 4-8 weeks. Minimum capital requirements of IDR 10 billion (approximately USD 625,000) apply to PT PMA, though commitments rather than deposits. Annual compliance involves substantial regulatory filings.
The Commodity Futures Trading Regulatory Agency (Bappebti) regulates crypto asset trading as commodities. Registration is required for exchanges. The framework provides regulatory clarity for established operators.
Indonesia has a large crypto trading population, driving regulatory development.
Gambling is illegal in Indonesia under Islamic and general criminal law. No gambling license framework exists. Gaming businesses must look elsewhere entirely.
Infrastructure varies dramatically across the archipelago. The regulatory environment requires local expertise to navigate. Currency has experienced periodic volatility.
Banking access is available through local and international banks. Professional services are well-developed in Jakarta. Indonesia rewards long-term market development commitment.
Indonesia suits businesses targeting ASEAN's largest market and companies with patient capital for market development for their business setup.
Local: PT
Local: Tbk
Local: Representative Office
| Corporate Tax Rate | 22% |
| Personal Income Tax Rate | 35% |
| VAT / Sales Tax | 12% |
| Capital Gains Tax | 35% |
| Withholding Tax | 20% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | SOME |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $100,000,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Detailed business plan with operational and risk management procedures required |
| Personnel Required | Minimum 2 BOD members, BOC members, certified information system auditor, certified information system security professional |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | OJK SPRINT integrated licensing system |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Financial Services Authority / Otoritas Jasa Keuangan (OJK) |
| Licensing Fee | $0 |
| Licensing Fee Details | Licensing fees determined by OJK; specific amounts not publicly disclosed as of 2026 |
| Permitted Business Models | DFA Exchange, DFA Trader, Clearing and Settlement Institution, DFA Custodian |
| Permitted Activities | Crypto asset trading, custody, clearing, settlement |
| Restricted Activities | Use as payment instrument prohibited; only whitelisted crypto assets tradable (1,444 assets as of April 2025) |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
Gambling is prohibited under Indonesian Criminal Code and Islamic law principles. No licensing regime exists. Penalties include imprisonment of up to 10 years. New Criminal Code effective January 2026 strengthens prohibition.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $3,000,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Comprehensive business plan with 3-year projections, risk management framework required |
| Personnel Required | Board of Directors (majority resident in Indonesia), Board of Commissioners, Compliance Officer |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Bank Indonesia and OJK registries |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bank Indonesia (BI) for payment systems; Financial Services Authority (OJK) for financial services |
| Licensing Fee | $0 |
| Licensing Fee Details | Fees vary by license type; E-money issuer minimum paid-up capital IDR 3 billion; Payment Service Provider (PJP) licensed by Bank Indonesia with 15% minimum Indonesian ownership requirement and 51% Indonesian voting rights |
| Permitted Business Models | Payment Service Provider (PJP), E-Money Issuer, Payment Gateway, Fund Transfer Operator, Electronic Wallet Operator |
| Permitted Activities | E-money issuance, payment processing, fund transfers, electronic wallets, QRIS transactions |
| Restricted Activities | Foreign ownership capped at 49% for non-bank e-money issuers; 51% voting rights must be Indonesian-owned; Banking activities require separate banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |