Indonesia’s strategic position in Southeast Asia and its dynamic, fast-growing economy make it an appealing destination for foreign entrepreneurs, including those from Turkey. With a population exceeding 270 million and abundant natural resources, Indonesia presents numerous opportunities for Turkish businesses eager to expand internationally.
Also read: Top Foreign Investors in Indonesia (by Country and Continent)
Can Turkish Entrepreneurs Start and Own a Business in Indonesia?
Yes, Turkish entrepreneurs can establish and own businesses in Indonesia, depending on the industry. Indonesia encourages foreign investments through its Positive Investment List (DPI) and Negative Investment List (DNI):
- Positive Investment List: Highlights sectors open to full foreign ownership to stimulate economic growth.
- Negative Investment List: Imposes restrictions or requires local partnerships for specific industries.
Understanding these regulations is essential for Turkish 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 Turkish Investors
The Positive Investment List provides opportunities for Turkish entrepreneurs to fully own businesses in high-potential industries, including:
- Tourism: Hotels, resorts, and tourism-related enterprises.
- Telecommunications: Internet providers and infrastructure services.
- Agriculture: Aquaculture, crop farming, and livestock ventures.
- Healthcare: Hospitals, clinics, and wellness centers.
- Manufacturing: Electronics, automotive parts, and textiles.
- Financial Services: Banking, insurance, and fintech.
These industries align with Indonesia’s development goals and offer substantial growth opportunities for foreign investors.
Industries with Conditional Foreign Ownership
Some sectors, such as mining, oil & gas, retail, and real estate, may require local partnerships or additional licensing. For instance:
- Mining and Oil & Gas: Usually require collaboration with local firms.
- Retail and Real Estate: Often have minimum capital requirements and specific permits.
For these industries, it’s advisable to consult local experts or Indonesia’s Investment Coordinating Board (BKPM) to navigate regulatory complexities.
Also read: Top Foreign Investment Sectors in Indonesia
Business Structures for Turkish Entrepreneurs
When entering the Indonesian market, Turkish businesses can choose from the following registration options:
PT PMA (Foreign-Owned Company)
- Permits full or partial foreign ownership.
- Requires a minimum investment of IDR 10 billion (approximately TRY 23,000,000 or USD 650,000).
- Needs at least two directors, one of whom must be an Indonesian citizen.
- Approval from BKPM is mandatory.
Also read: Can a PMA Own Land and Properties in Indonesia?
Representative Office (RO)
- Ideal for market exploration without revenue-generating activities.
- Requires an official office address and a designated Indonesian representative.
Also read: The Types of Representative Offices in Indonesia
Both structures cater to different goals, so selecting the right option depends on your business objectives.
Why Indonesia is an Ideal Market for Turkish Businesses
Indonesia offers several advantages for Turkish entrepreneurs:
- Rapidly Growing Economy: Expanding middle class with increasing purchasing power.
- Strategic ASEAN Gateway: Access to a market of over 680 million people.
- Rich Natural Resources: Opportunities in agriculture, energy, and manufacturing.
- Government Incentives: Tax breaks, streamlined licensing, and foreign investment support.
These factors position Indonesia as a prime market for Turkish businesses looking to grow internationally.
Also read: 10 Reasons Why You Should Invest in Indonesia
Start Your Business in Indonesia
Expanding into Indonesia might seem challenging, but with proper guidance, the process is manageable. By understanding the local regulatory environment, investment opportunities, and business structures, Turkish entrepreneurs can unlock Indonesia’s vast potential.
For expert guidance on Indonesia company registration for Turkish 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!
Expand your business to Indonesia and seize the opportunities offered by this thriving economy!
