Home Blog Doing Business in Indonesia: An Overview of Indonesian Market Landscape Uncategorized Doing Business in Indonesia: An Overview of Indonesian Market Landscape InCorp Editorial Team 20 November 2017 4 minutes reading time Table of Contents Indonesian Market Landscape throughout The Years Penetrate the Indonesian Market with Assistance from Cekindo We have all witnessed how the Indonesian market slowly rose to become one of the world’s emerging economic hotspots. With the growing attention that the archipelago has been getting, surely there is no lack of foreign investors seeking great opportunities like this and start a business in Indonesia. According to the 2016 Economic Survey of Indonesia, a sound macroeconomic policy framework will pull a miracle economic performance. However, it will still be facing challenges that can be overcome by the strong mandate from the administration. Indonesian Market Landscape throughout The Years Ease of Doing Business (EODB) in 2014 The past few years have brought significant change to the Indonesian market landscape. In 2014, the Indonesian people pushed President Jokowi to realize his promise of sustainable growth and economic development in Indonesia. With infrastructure development as the top priority, the Jokowi administration made great efforts to create an investor-friendly government with a minimum regulatory process for doing business in Indonesia. PricewaterhouseCoopers (PwC) points out that Jokowi’s administration is in a constant implementation to increase infrastructure spending until 2019. The gross domestic product (GDP) will also reach a peak of 7.7 percent in 2017 forecasted by PwC. They are also in full force promoting a Public-Private Partnership (PPP) scheme, encouraging investment in the infrastructure sector. Ease of Doing Business in (EODB) 2016 In late 2016, Indonesia’s ranking in EODB made its way up from 106 to 91 out of 190 countries; according to World Bank’s global survey. Thanks to a series of fundamental reform packages—now 15 of them—making a 15-place jump for EODB. It has proved that the government’s multi-pronged efforts have been fruitful with Capital Investment Coordinating Board (BKPM) living up to its goal to do better. Company registration in Indonesia is made simpler this way. Indonesia is a strategically important market with the largest economy in Asia—a GDP of 932 billion (USD); it is also in the third rank for the fastest growing economy, competing with all the countries in Asia. A projection from IMF estimates the purchasing power to reach 5.1 percent growth in 2017 supported by the strong private consumption—with a 5 percent growth over the past decade—putting Indonesia in the 8th place in the world with its purchasing power parity. With this emerging economic opportunity, setting up a company in Indonesia seems like a good way to reap the economic benefits in the long run. The prime economic sector with 24.3 percent of GDP is the manufacturing and process sector. Ease of Doing Business Nowadays As a matter of fact, Indonesia is the fourth most populous country in the world with a huge population of over 250 million. It is also one of the largest archipelagic countries; with over 17, 000 islands contributing to its abundant natural resources and major transport links. The large population means a large market available to invest in by foreign companies in Indonesia. Today, Java is the most developed and populated island, keeping the most businesses and investments at its heart. With the effort to build a modern infrastructure; to reduce the digital gap between Indonesia and other countries; with the estimation, the data traffic in Indonesia will rise sixfold by 2020. Together with that, Indonesia made its name in the digital world with the fourth largest users of Facebook globally; Jakarta is the largest user of Twitter in the world. In conclusion, given the optimistic market landscape, starting a business in Indonesia has never been easier. Many investors are welcome to unlock Indonesia’s Massive business and investment opportunities. Penetrate the Indonesian Market with Assistance from Cekindo As a leading consulting company in Indonesia, Cekindo provides comprehensive services related to market entry and incorporation, from company registration and product registration to visas and permits. Get in touch to discuss your business needs via the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What is the difference between PT and CV? You can find the difference below: PT: limited liability company (shareholders are not legally liable for company liabilities) CV: a proprietary company where liability falls on the shareholders What other things should be considered when hiring local and foreign employees in Indonesia? There are a few things to consider, such as: Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates Increase the competence of workers by giving or encouraging job training. Follow the termination procedures (Terminating an employee in Indonesia can be long, tedious, and expensive. Observe working hours, holidays, and overtime regulations Give mandatory employee benefits, including social security and health insurance Withhold only the right amount of income tax on behalf of the employees Follow the wages and other benefits outlined by the law Process work permits for foreign employees Can you provide pricing details for HR outsourcing services? To provide you with accurate pricing information for our HR outsourcing services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please get in touch with our consultants. Should a foreigner deposit the minimum paid-up capital in a bank account to start a business in Indonesia? It is advisable to make a minimum paid-up capital deposit after the company completes its establishment process. Another option is after the company receives the Articles of Association and Deed of Establishment. Get in touch with us. Lead Form Newsletter Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business 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. More on Uncategorized Work-at-Home Moms, Here’s Your Easy Guide to Virtual Office in Jakarta Read more Why Invest in Padang, Indonesia Read more How to Start a Travel Agency in Indonesia: Tour and Travel Read more