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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~101 days
Setup Time
~$700
Setup Cost
22%
Corporate Tax
100%
Foreign Ownership
#73
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
PT PMA (Foreign Investment Company) Perseroan Terbatas Penanaman Modal Asing | 1,200,000 USD | 100% | Limited | 2 | Standard vehicle for foreign investors — Rp 10B minimum investment |
PT PMDN (Domestic Company) Perseroan Terbatas Penanaman Modal Dalam Negeri | 3,600 USD | No | Limited | 2 | Indonesian nationals only — lower capital requirement |
Representative Office (KPPA) | None | 100% | Unlimited | 0 | Market research and promotion — no revenue activities |
Obtain Investment Approval (OSS)
Register on Online Single Submission system for business identification number (NIB)
1-3 days
Free
BKPM via OSS
Establish Deed of Incorporation
Draft articles via notary, obtain Ministry of Law approval
7-14 days
~$500
Notary / MOLHR
Tax Registration (NPWP)
Obtain taxpayer ID and PKP (taxable enterprise) status
3-7 days
Free
DGT
Register with Manpower Office
Register company employment plan
3-7 days
Free
Ministry of Manpower
Open Bank Account & Deposit Capital
Minimum investment Rp 10B (~$700K) must be deposited
3-10 days
Free
Commercial Bank
Obtain Business Licenses
Sector-specific licenses via OSS risk-based approach
7-60 days
~$200
Various Ministries via OSS
$180/mo
Minimum Wage
$400/mo
Average Wage
40 hrs/week
Work Hours
12 days/year
Paid Leave
4 weeks/year
Severance
11.74% of salary
Employer Social Security
3% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: RPTKA (foreign worker utilization plan) required. Must have Indonesian deputy in training.
#73/190
Ease of Business Rank
13 days
Starting a Business
28 days
Registering Property
403 days
Enforcing Contracts
34/100
Corruption Perception
73%
Internet Penetration
IDR
Currency
UTC+7 to UTC+9
Time Zone
14
Retail (months)
10
F&B (months)
16
Tech (months)
24
Manufacturing (months)
10
Services (months)