advantages of company formation in Indonesia

Indonesia, officially known as the Republic of Indonesia, is located in South East Asia. Comprising of thousands of islands, its economy majorly relies on Agriculture, Mining, Tourism and Textile Industry. Further, Indonesia has signed Double Tax Agreements with more than 65 countries. Setting up a company in Indonesia is ideally preferred by entrepreneurs also the trust factor plays a pivotal role while doing business in Indonesia. Additionally, the tax is levied on a business only on the income generated in Indonesia. Following are the advantages of starting a business in Indonesia. Enumerated below are a few reasons why company formation in Indonesia can prove ideal for businesses.

  • Indonesia has a population of more than 250 million and therefore offers a huge market potential.

  • It is considered as one of the top export destinations across the globe.

  • The economy of Indonesia enjoys a steady growth every year.

  • It is a major exporter of crude palm oil, coal, cocoa and natural gas across the globe.

  • The percentage of foreign investment depends on the negative investment list, which allows for a substantial amount of foreign investment in various sectors as compared to the past.

requirement to open a company


  • Minimum 2 shareholders
  • The minimum capital requirement is IDR 10 Billion of which only 25% should be paid up
  • A foreign company should get an approval from the Badan Koordinashi Penanaman Modal (Investment Coordinating Board)


  • Name and Domicile of the company
  • By-Laws of the Company (MOA & AOA)
  • Passport copies of the Directors


  • Drafting of all the documents pertaining to incorporating a Company
  • Structuring of business entity
  • Application for approval from the BKPM
  • Business Registration
  • Assistance in opening a corporate bank account for the company
  • Post Incorporation Services (if required)


The approximate time period for company incorporation in Indonesia can range from 2 – 3 months.
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