Things to Consider When Starting a Business in Indonesia

Things to Consider When Starting a Business in Indonesia

Nowadays, it is increasingly difficult for many people to get a job, especially for people who do not have special skills. Opening your own business can be an opportunity for you to make money.

If you decide to start your business or investing in Indonesia, you need to know step by step how to start a company and you need to consider the following things.

Also read: Easy Tips To Grow Your Property Business

  1. Type of Business

    Please note that some sectors or industries are prohibited or limited to foreign investment. The list is written in the Indonesia Negative Investment List. In the list, some sectors limit foreign ownership from zero (0) to ninety-five (95) percent. However, some businesses are allowed to be fully owned (100%) by foreigners.
  2. Type of Company

    Since the government of Indonesia wants to protect its micro, small, and medium enterprises, there is a policy stating that to open a business in Indonesia, the company needs to be registered as a foreign limited liability or PMA. To establish a foreign company, it is obligated to meet certain requirements regarding minimum investment and paid-up capital.
  1. Human Resources Issue

    Although Indonesia is listed as the fourth most populated country in the world with over 60% of the total population being in their productive ages (15-60 years old), not all of them are having sufficient skills to participate in the industrial and commercial world. On the other hand, hiring foreign talents also requires complex requirements. This will become a challenge that every PMA needs to solve. Therefore, you need to be selective in choosing human resources based on your needs to avoid more costs by hiring unskilled or unsuitable people.
    Also read: 7 Reasons and Advantages for Starting a Business in Indonesia
  2. Diverse Markets

    Indonesia is not only the biggest archipelago nation in the world but also the most complex and fragmented market. Considering that there are many races, languages, religions, customs, and values, you cannot treat Indonesia as a single market entity. Every target group has its own needs that the business needs to address.
    Also read: 5 Must-Own Company Legality Documents
  1. Bureaucracy

    You have to highlight that the bureaucracy in Indonesia is so long and complex. And make any foreigners who are new to this environment feel overwhelmed. As a foreigner, you should be put into your awareness that keeping up-to-date with recent laws and policies is very important.

If you are interested in opening a business and company here, don’t hestitate to check our services for company setup Indonesia.

Furthermore, InvestinAsia is one of a company that can help you through the process of PMA registration in Indonesia, Indonesia representative office registration, virtual office setup in Indonesia, and obtaining the necessary business registration number in Indonesia.

If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.

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