Indonesia Company Registration for Indian Entrepreneurs: A Complete Guide

Indonesia, renowned for its thriving economy and strategic location in Southeast Asia, has emerged as an attractive destination for global investors, including Indian entrepreneurs. With a vast market, abundant natural resources, and pro-business policies, Indonesia offers exciting opportunities for Indian businesses looking to expand internationally.

But what does it take for Indian entrepreneurs to establish and own a business in Indonesia? This guide provides insights into the process and highlights the opportunities available.

Also read: Risk-Based Business Licensing and OSS System in Indonesia

Can Indian Entrepreneurs Start and Own a Business in Indonesia?

Yes, Indian entrepreneurs can establish and fully own businesses in Indonesia, provided the chosen industry permits 100% foreign ownership. The Indonesian government categorizes industries into two lists:

• Positive Investment List (DPI): Sectors open to full foreign investment to attract global investors and drive economic growth.
• Negative Investment List (DNI): Industries where foreign investment is either restricted or requires collaboration with local partners.

Understanding these categories is essential to determine the type of business you can set up in Indonesia.

Also read: Can a Foreigner Own 100% of a Business in Indonesia?

Industries Open to Indian Entrepreneurs

Indonesia’s Positive Investment List provides various opportunities for Indian investors to fully own businesses in key sectors:

1. Agriculture: Opportunities include crop farming, livestock breeding, and aquaculture.
2. Financial Services: Exploring banking, insurance, and other financial solutions.
3. Manufacturing: Focus areas such as textile production, vehicle components, and electronics.
4. Tourism: Investments in hotels, resorts, and other travel-related services.
5. Telecommunications: Engaging in mobile and internet services.
6. Healthcare: Establishing hospitals, clinics, or wellness centers.

These industries align with Indonesia’s development goals and offer significant growth potential for foreign investors.

Also read: Major Industries in Indonesia (Based on Contribution to GDP)

Sectors with Conditional Foreign Investment

Certain industries in Indonesia impose restrictions on foreign ownership. These include:

• Mining and Oil & Gas: Require partnerships with local entities and technology transfer.
• Retail and Real Estate: Often subject to minimum capital requirements.

Indian entrepreneurs should consult the Indonesian Investment Coordinating Board (BKPM) or a local expert to navigate these regulations effectively.

Also read: Indonesia’s Top Trading Partners (Export-Import)

Business Registration Options for Indian Entrepreneurs

Indian entrepreneurs can establish businesses in Indonesia using two main frameworks:

1. PT PMA (Foreign-Owned Company)

   • Allows full or partial foreign ownership.
   • Requires a minimum investment of IDR 10 billion (approximately 55,000,000 Indian Rupee or USD 650,000).
   • Must have at least two directors, one of whom is an Indonesian national.
   • Requires approval from the BKPM.

2. PMA Representative Office

   • Ideal for businesses exploring the Indonesian market without generating revenue.
   • Requires a registered office and an appointed Indonesian representative.

Both options have distinct advantages depending on your operational goals and long-term strategy.

Also read: The Types of Representative Offices in Indonesia

Why Indonesia is a Great Opportunity for Indian Entrepreneurs

Indonesia offers a combination of economic, demographic, and policy-driven advantages for Indian businesses:

• Robust Economic Growth: A growing middle class with increased consumer spending.
• Strategic Location: A gateway to the Southeast Asian market.
• Abundant Resources: Opportunities in agriculture, manufacturing, and energy sectors.
• Government Support: Incentives for foreign investors, including tax breaks and simplified procedures.

Indian entrepreneurs can leverage these factors to gain a competitive edge in one of Asia’s most dynamic markets.

Also read: Indonesia Investment Incentives: Government Support for Foreign Businesses

Start Your Business Journey in Indonesia

The process of registering a business in Indonesia can be complex, but with the right guidance, it becomes much simpler. Understanding local regulations, industry classifications, and investment requirements is crucial for a seamless experience.

For expert guidance on Indonesia company registration for Indian businesses, you can rely on InvestinAsia’s Indonesia PMA company registration and Indonesia Representative Office Set Up services to simplify the process.

Start a chat with us for FREE consultation and get a special package!

Also check out our services for other business legality matters:

• Indonesia PT PMDN Company Establishment
• Virtual office setup in Indonesia
• Business registration number in Indonesia
• Indonesian Business Licenses application
• Indonesia Trademark Registration

Contact our experts now for FREE consultation and special package!