Indonesia Business Guide

Business Guide

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.

Import Licenses for Doing Business in Indonesia

The licenses required by businesses in Indonesia that import goods for production and trade have recently changed. This section explains the two types of import licenses available to businesses, namely API-P and API-U, their different uses and how to go about obtaining them.

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.

Indonesia snapshot

Capital: Jakarta
Population: 246 million (estimated, 2012)
Currency: Indonesian Rupiah
Nominal GDP: $845 billion (2011)
GDP per capita: $4,700 at PPP (2011)
GDP Growth: 6.5% (2011)
External Debt: 25% of GDP (2011)
Ease of Doing Business: 129/183 (WB, 2012)
Corruption Index: 100/178 (TI, 2011)