Country
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam

Indonesia

Indonesia

Capital City
Jakarta

Official Language (s)
Indonesian

Language required for filings
English

Currency
Indonesian Rupiah (Rp)

Population
249.9 million

GDP
$2.840 trillion

Corporate tax rate
25%

One of the most populous countries in the world, Indonesia holds a big influence in the region, economically and politically. It’s economic strength comes from mining and manufacturing notably oil, coal, gold, copper as well as textile products and footwear. It’s agricultural sector remains interesting still with its vast abundant fertile soil for forestry, plantation, farming and fishery, and the trading and hospitality sector.


1.0 Business in Indonesia

Indonesia Investment Coordinating Board
Indonesia Investment Coordinating Board (BKPM) regulates busineses in the country. There are several main types of businesses:
  • A foreign investment limited liability company is also known as “PT Penamanan Modal Asing” (PT PMA).
  • Representative Office
  • Branch
  • Agent/Distribution

For more info visit :http://www.bkpm.go.id

Ministry of Manpower and Transmigration
The relationship between employers and employees in Indonesia is regulated by Ministry of Manpower and Transmigration.
1.1 Types of Employment
  • Full-Time
  • Part-Time
  • Casual (Freelance)
  • Fixed Term/Contract
  • Apprenticeships & Trainees
  • Probationary Period
  • Piecework and Commission only payment
1.2 Mininum Wage

Each 29 provinces has their own set amount of minimum wage ranging from IDR 1,250,000 to IDR 2,193,000

1.3 Annual Leave

The minimum number of annual leaves are 12.

1.4 EPF

A required form of retirement fund. Insured person: 2% of gross monthly earnings; and Employer: 3.7% of monthly payroll.

For more info visit :http://www.depnakertrans.go.id


2.0 Taxation
Ministry of Finance Indonesia
2.1 Corporate Tax

Under Indonesian Taxation Department, the rate for companies of resident status are at a flat rate of 25%

2.2 Value Added Tax (VAT) / Goods & Services Tax (GST)

VAT with a standard rate of 10%. VAT can only be levied and charged if the business is registered under VAT Registered Business with an annual turnover of taxable supplies reach the prescribed threshold of IDR 4.8 billion.

For more info visit :http://www.kemenkeu.go.id/