Indonesia, with its strategic position in Southeast Asia and a thriving economy, offers immense opportunities for foreign entrepreneurs, including those from Thailand. Boasting a population exceeding 270 million and abundant natural resources, Indonesia is an attractive destination for Thai businesses seeking to expand their operations internationally.
Also read: Indonesia Free Trade Zone and Free Port (FTZFP): A Complete Guide
Can Thai Entrepreneurs Start and Own a Business in Indonesia?
Yes, Thai entrepreneurs can establish and own businesses in Indonesia, depending on the industry. Indonesia promotes foreign investments through its Positive Investment List (DPI) and Negative Investment List (DNI):
- Positive Investment List: Highlights sectors open to full foreign ownership, encouraging economic growth.
- Negative Investment List: Specifies industries with restrictions or requiring local partnerships.
Understanding these regulations is crucial for Thai businesses to assess the feasibility of their ventures in Indonesia.
Also read: Can a Foreigner Own 100% of a Business in Indonesia?
Key Industries Open to Thai Investors
The Positive Investment List presents opportunities for Thai entrepreneurs to fully own businesses in high-potential sectors such as:
- Tourism: Hotels, resorts, and tourism-related ventures.
- Telecommunications: Internet services and infrastructure development.
- Agriculture: Crop farming, aquaculture, and livestock ventures.
- Healthcare: Hospitals, clinics, and wellness centers.
- Manufacturing: Automotive parts, electronics, and textiles.
- Financial Services: Banking, insurance, and fintech.
These industries align with Indonesia’s development priorities and offer significant growth opportunities for Thai businesses.
Also read: Top Foreign Investment Sectors in Indonesia
Industries with Conditional Foreign Ownership
Certain sectors, such as mining, oil & gas, retail, and real estate, may require local partnerships or additional permits:
- Mining and Oil & Gas: Typically necessitate collaboration with local firms.
- Retail and Real Estate: Often have capital requirements and specific licensing processes.
For businesses in these sectors, consulting with experts or Indonesia’s Investment Coordinating Board (BKPM) is recommended to navigate the regulatory landscape.
Also read: How to Check Company Details in Indonesia: A Complete Guide
Business Structures for Thai Entrepreneurs
When entering the Indonesian market, Thai businesses can select from these registration options:
PT PMA (Foreign-Owned Company)
- Allows full or partial foreign ownership.
- Requires a minimum investment of IDR 10 billion (approximately THB 22,000,000 or USD 650,000).
- Requires a minimum of two directors, with at least one being an Indonesian national.
- Approval from BKPM is required.
Also read: Can a PMA Own Land and Properties in Indonesia?
Representative Office (RO)
- Best for market exploration without engaging in revenue-generating activities.
- Necessitates an official office location and an appointed representative from Indonesia.
Also read: The Types of Representative Offices in Indonesia
Each structure caters to different business objectives. Choosing the right structure depends on your business goals and investment strategy.
Why Indonesia is an Ideal Market for Thai Businesses
Indonesia provides several advantages for Thai entrepreneurs, including:
- Rapidly Growing Economy: A burgeoning middle class with increasing purchasing power.
- A strategic gateway to ASEAN, offering access to a market of over 680 million people.
- Abundant Natural Resources: Opportunities in agriculture, energy, and manufacturing.
- Government Incentives: Tax breaks, simplified licensing, and foreign investment support.
These factors make Indonesia a lucrative market for Thai businesses aiming to expand globally.
Also read: 10 Reasons Why You Should Invest in Indonesia
Start Your Business in Indonesia
Although expanding into Indonesia may seem complex, the process is manageable with the right guidance. Understanding local regulations, investment opportunities, and business structures is key to unlocking Indonesia’s vast potential.
For expert guidance on Indonesia company registration for Thailand 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!
