(Foreign Investment Company in Indonesia for Your Business in Yogyakarta? Here’s Why

Why Should You Establish a PT PMA for Your Business in Yogyakarta?

InCorp Editorial Team

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Being one of the best business locations for entrepreneurs to set up a foreign investment company in Indonesia, Yogyakarta has got it right in many areas in attracting foreign capital.

Generally, Yogyakarta enjoys a strong competitive edge over many cities in Southeast Asia especially in its rapid development of digital ecosystems and high-tech startups.

The improving infrastructure, attractive tax regime, abundant young workforce, and stable socio-political environment also put Yogyakarta on top of the list as a destination to start a business in Indonesia.

Below are the reasons in detail for starting a business in Yogyakarta.

Why Start a Business in Yogyakarta

1. High-Quality Education, Workforce, and Talent

There is a huge young population in Yogyakarta especially in Kota Pelajar, hosting a lot of students from Universitas Gadjah Mada (UGM). Approximately 37.5% of Yogyakarta’s population is below 24 years old; 49.1% of its population is between 25 and 59 years old.

Therefore, as the hub of education with so many young and highly-educated talent and workforce, it is no wonder that a substantial number of entrepreneurs start their businesses in Yogyakarta in a heartbeat.

2. Booming Digital and Creative Startups

A lot of digital and creative startups have blossomed and some even gained significant success recently.

The prospering digital ecosystems are also supported and improved by digital incubators, coworking spaces, seminars and conferences, creative centers, and governmental policies.

Some popular digital startups in Yogyakarta include Fitinline, Sale Stock Indonesia, Culinary, and Kulina.

3. Government Support and Little Cost

The low expenses and Indonesian government support initiatives are some of the key reasons so many foreign entrepreneurs base their startups in the city.

Salaries, rents, and utility fees are much lower in Yogyakarta as compared to some major cities in Indonesia.

Also, the best part is the Investment Coordinating Board in Indonesia assists Yogyakarta’s startups, especially in the field of Information Technology (IT) to acquire outstanding talents.

4. Bettered Transport Infrastructure

To keep up with the increasing arrivals of foreign visitors, the transport infrastructure in the region has improved at a rapid pace. In 2019, about 7.2 million visitors arrived at Yogyakarta’s Adisutjipto International Airport, Slemen Regency. Another new airport in the city will commence its operation in 2020 as well.

Why Should You Establish a Foreign-Owned Company over Other Entity Options

There are several types of business entities you can establish in Indonesia. They are the local company (PT), representative office (RO), sole proprietorship, branch office, and foreign-owned company (PT PMA).

For foreign investment in Yogyakarta, PT PMA is the most suitable business structure for foreign investors over the others due to the many benefits it presents.

  1. A PT PMA can sponsor foreign employees provided that it fulfills certain criteria. These foreign employees may include directors, commissioners, and other foreign shareholders.
  2. Your PT PMA can obtain licenses and permits more easily. The license and permit issuance will take less time and hassle to complete.
  3. You can enjoy lower import duties as PT PMA is eligible for certain financial and tax benefits under Indonesian Law.

How Cekindo can Assist with Foreign Investment Company Setup in Indonesia

The promising market outlooks and impressive workforce make Indonesia and its many cities that include Yogyakarta, an ideal location for you to set up a foreign investment company.

Each year, thousands and thousands of business owners register their foreign companies in Indonesia to capitalize on the easy access to capital and corporate tax benefits.

Cekindo has been consistently recognized by our clients and experts as one of the leading consulting firms in Indonesia. We can help you set up a foreign investment company in Indonesia that is compliant with all labor laws and bureaucratic regulations.

Get started with Cekindo so you can incorporate your foreign investment company in Indonesia with ease. Fill in the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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