Indonesia Business Guide

Work Permits in Indonesia

Indonesia has been viewed by many expatriates as a top destination for business, work and tourism. To make the country a more attractive investment prospect, the Indonesian government have set up regulations for foreigners to live and work permanently in the country.

Business Visas in Indonesia

All persons coming to Indonesia for business purposes must obtain a business visa. The business visa does not entitle the applicant to take up employment in Indonesia or to receive payments whilst in the country. Applicants can apply for a single entry business visa or a multiple entry business visa.

Patents in Indonesia

Patents in Indonesia are regulated under Law No. 13 of 2016 (New Patent Law) which replaced the previous Patent Law (Law No. 14 of 2001). As defined in the New Patent Law, ‘a patent is an exclusive right granted by the state to an inventor for an invention which is novel and which can be applied in industry’.

Registering a Trademark in Indonesia

Registering a trademark in Indonesia is regulated by Law No. 15 of 2001 (Trademark Act) under the Directorate General of Intellectual Property Rights (DGIP). The Indonesian government recently amended the Trademark Act and passed the New Trademark and Geographical Indication Law (Law No. 20 of 2016) on 27th October 2016.

Termination of Employment in Indonesia

The termination of employment in Indonesia is regulated by the Labour Law and Law No. 2 of 2004 on the Settlement of Industrial Relations Disputes. In principle, a 30-day notice period must be given to terminate an employment contract.

Minimum Wages in Indonesia

Minimum wages in Indonesia differ from province to province. The provincial government annually issues a minimum wage that is applicable in the province. The Government Regulation No. 78 of 2015 on Wages sets out the new strategy to calculate minimum wages for each province each year. This section provides a brief summary of the minimum wage laws.

Employment in Indonesia

Terms of employment in Indonesia are governed by Law No. 13 of 2003 regarding Manpower and employment-related issues. This section briefly explains the different employment types in Indonesia.

Taxation in Indonesia

There are a wide variety of taxes in Indonesia that are based on corporate income tax, personal income tax, value added tax, and luxury tax. This section briefly explains the different types of taxes in the country.

Indonesia in Free Trade Agreements

Indonesia has signed and implemented a number of free trade agreements with countries and regions around the world. This section provides a brief summary of those agreements.

Investing in the Insurance Sector in Indonesia

Indonesia's low insurance penetration level spells vast opportunities for foreign investors seeking to take advantage of its market. This section briefly explains the procedures and requirements for operating in this sector.

Applying for a Mining License in Indonesia

Foreign companies seeking to establish a non-oil and gas mining operation in Indonesia are required to obtain a mining license. This section briefly explains what is needed in applying for one.

Export Procedures in Indonesia

Companies in Indonesia, whether local or foreign-owned (PMAs), seeking to send their goods abroad are subject to a set of defined export procedures. This section provides a summary of these procedures.

Investing in the Oil and Gas Sector

Foreign investors seeking to operate in Indonesia’s oil and gas sector are exposed to certain conditions and requirements. This section provides a brief explanation of the permits, joint cooperation contracts and the tendering process involved.

Overview of the Negative Investment List

Indonesia's Negative Investment List specifies which business sectors are open, partially open, entirely closed, or open but with certain conditions to foreign investment, as well as the percentage of foreign ownership permitted. This section provides details of the categories.

Agents and Distributorship in Indonesia

In marketing a particular product or service in Indonesia, foreign individuals or companies are not necessarily required to set up a business entity in the country as appointing a local agent or distributor can also serve to fast-track a venture; especially for the short and medium-term.

Minimum Capital Requirements for Foreign Investment in Indonesia

Indonesia specifies minimum capital requirements for foreign investment; this is the amount of capital that will be invested as detailed in the company’s submitted investment plan. This section provides insights into these requirements and how they are implemented across different industries.

Representative Offices in Indonesia

Representative offices provide foreign companies with the opportunity to enter Indonesia to explore commercial opportunities. This section looks at the application process for setting up a representative office for investors looking to assess the potential of the Indonesian market.

Applying for Import Licenses in Indonesia

The Indonesian government strictly regulates import quotas, which means that obtaining an import license can be a highly bureaucratic and time consuming process. This section explains the different types of import licenses that can be applied for and how to go about obtaining them.

Incorporating a PMA Company in Indonesia

A company established with foreign investment capital in Indonesia is known as a PMA company (Penanaman Modal Asing). This section provides a detailed overview of the process behind incorporating a PMA company in Indonesia including a list of required steps that need to be taken.

Joint Venture Company Establishment in Indonesia

Establishing a joint venture together with a local company is one of the more expedient ways for foreign individuals or companies to set up a business in Indonesia. This section explains what is required for establishment.

New Tax Incentives for Investors in Indonesia

After much anticipation and delay, the Indonesian government through the investment body BKPM released Government Regulation PP 52/2011 as a revised version of PP 62/2008. This section looks at the new tax allowances and tax holidays available to investors in Indonesia.

Franchise Law in Indonesia

The franchise business model has become an increasingly popular method of entering the Indonesian market for both local and foreign investors. This section looks at the laws and regulations for franchisees and franchisors in Indonesia.

Agricultural Land – Right to Cultivate

With immense agricultural opportunities to be found in Indonesia, land rights for agricultural use are an essential aspect to consider. This section provides an overview of the law governing the leasing of land for agricultural cultivation and the governmental bodies involved.

Setting up a Business in Indonesia

Choosing the type of business structure that is most suited to your venture is a critical component of successful entry into the Indonesian market. This section looks at the various options available to foreign investors and provides an overview of the process for setting them up.

Understanding the Negative Investment List

Indonesia’s Negative Investment List is divided into various categories which stipulate how a local or foreign investor may approach the market. This section explains the basics behind each of these categories, what they mean for foreign investors and the relevant authorities for each.

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