doing business in indonesia

The Importance of a Registered Business Address when Doing Business in Indonesia

  • InCorp Editorial Team
  • 4 July 2025
  • 3 minutes reading time

Indonesia is one of the important economic powerhouses in the world that many investors want to do business in for a lot of reasons. From its strategic location to access to huge international markets, abundant resources to a vibrant investment environment, Indonesia makes an excellent choice for doing business.

There are several requirements for registering a business in Indonesia that you must comply with, and one of those is having a registered business address.

Every business in Indonesia will require a designated location with a registered business address. This registered business address allows the follow-up for regulatory compliance issues, communications, correspondence and the smooth operation of the business.

However, many business owners are tempted to use a residential address for their business purposes and little do they know that the use of a residential address for their businesses will lead to non-compliance.

Except for Jakarta that doesn’t need a domicile, no investor is allowed to do business in Indonesia with a company address that is the same as the owner’s residential address.

This rule applies to every type of legal entity in Indonesia including local companies, foreign-owned companies, and representative offices.

The Ideal Solution for Business Address Issue

You don’t have to spend a lot of money to buy or rent an office just to get a registered business address.

Now, you can easily set up your company in Indonesia with a legit registered business address with a virtual office.

Not only that your business is fully in compliance with the law regarding the mandatory business address, but a physical business address will also help you generate more sales as people will be more willing to do business with you.

A virtual office provides a physical business address in a prime location, giving the impression that your company is reputable, reliable and trustworthy.

Furthermore, you can use this address on your website, business card and social media platform to show that you have an established company.

Benefits of Virtual Office when Doing Business in Indonesia

In addition to compliance and increased reputation, a virtual office in Indonesia, especially those that are centrally located can give entrepreneurs the following advantages:

  • You can start doing business in Indonesia quickly
  • Meeting rooms are available to meet up clients and employees in person
  • You can scale up or downsize your business anytime you want based on your business growth
  • No long-term and expensive commitment, you can rent a virtual office on a short-term lease
  • Low overhead costs: no maintenance fees and hefty start-up costs
  • Mail and call forwarding services
  • Other receptionist services which mean you don’t need to hire any full-time administrative employees
  • Free virtual office consultation

Business Incorporation in Indonesia with InCorp Indonesia

After you have decided to start a business in Indonesia, the next step is the business incorporation of your company.

InCorp Indonesia is a licensed company registration service provider in Indonesia and has established itself as a leading business consultant since commencing its business in 2011.

We offer a one-stop solution helping our clients to set up an Indonesian company, with the assistance of opening bank accounts.

We give pieces of advice that enable our clients to start their business activities efficiently and quickly. On-going assistance is also available after you have after the incorporation to help your business comply with Indonesian company law, tax filing, and accounting requirements.

Find out about all the details from InCorp Indonesia for the business incorporation in Indonesia. Fill in the form below.

Verified by

Ales Cina

Consulting Manager at InCorp Indonesia

Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.

Frequently Asked Questions

    A PMA company in Indonesia must obtain an NIB, which also functions as:

    • Importer Identification Number (Angka Pengenal Impor or API)
      Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production.
      General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System.
    • Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process.

    Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals.

    Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met.

    Yes, PMA companies in Indonesia can hire expatriates, but certain positions are restricted by the Ministry of Manpower. Expatriates need both working and stay permits, and employers must employ Indonesian counterparts for each expatriate employee, typically at a ratio of at least one Indonesian counterpart per expatriate.

    The minimum number of shareholders to incorporate a PT is two

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.