E

xpand Your Business in Indonesia

Currency:

Indonesian Rupiah (IDR)

Official Language:

Indonesian (Bahasa Indonesia)

Ease of Doing Business Rank:

73rd globally (World Bank, 2020)

Average Time to Set Up a Business:

5–10 days

Corporate Tax Rate:

22% standard rate; public companies meeting certain conditions receive a 3% reduction, resulting in

VAT (Standard Rate):

11% as of 2023; scheduled to increase to 12% on January 1, 2025

VAT Registration Threshold:

IDR 4.8 billion annual turnover

Dividend Tax Rate:

10% withholding tax on dividends paid to non-residents, unless reduced by tax treaties

Personal Income Tax Rate:

Progressive rates ranging from 5% to 35%

Company + Employer Contributions:

Employers contribute approximately 10% of an employee’s salary to social security programs

Minimum Share Capital:

No minimum capital requirement for most business classifications

Bank Account Requirements:

Mandatory to open a local bank account for company operations

Accounting Requirements:

Annual financial statements; monthly and annual tax filings

Audit Requirements:

Mandatory for companies exceeding certain asset, turnover, or employee thresholds

Business License Requirements:

Specific licenses required depending on the industry

Immigration Policy:

Various visa options available for foreign investors and workers

Compliance Requirements:

Regular tax filings, adherence to labor laws, and maintenance of proper accounting records