Cekindo Business International is now InCorp Indonesia. Learn more.
InCorp offers a comprehensive range of solutions to ease the company registration process and help you create a viable roadmap for your business.
Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Granting an environmental permit in Indonesia needs an Environmental Impact Analysis (AMDAL) in advance.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the country’s complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
Learn more about the food & beverage product registration services in Indonesia
Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
Learn more about the household product registration services in Indonesia.
Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
Organizations must continuously evolve and transform to remain competitive and relevant in today’s global environment ...
Companies face many opportunities and challenges as a result of a changing market and regulatory landscape ...
Adopting Environmental, Social, and Corporate Governance (ESG) practices can improve your company’s value ...
Risk Management services from InCorp Indonesia can assist companies in building confidence when making future business decisions ...
Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
Our transfer pricing services provide you with a hassle-free experience while still complying with the legal aspects of transfer pricing in Indonesia.
As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
Both natural and legal persons are entitled to open a bank account in Indonesia. Find out how to open a bank account in Indonesia, here.
InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
InCorp can help foreigners to get the driving license in Indonesia, whether SIM A or SIM C. Check out the requirements and the procedure, here.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
Currently, Indonesia in ranks 114 out of 118 of ease doing business based on latest survey from World Bank. However, along with the new government, some business laws and regulations in various sectors have been changed to be tighter than before.
After Jokowi was announced as the winner of Indonesia’s Presidential Election, there is an optimism of better climate to invest in Indonesia encouraged also through his speech in APEC CEO Summit to increase the ease of doing business in Indonesia.
“We have a national one-stop service office that can help you, that will serve you, that will facilitate you, that will give you your business permit” -Jokowi-
Since April last year, there is a new Indonesian Negative Investment List, May 4, 2014 which limits foreign shareholding in several sectors but increase foreign shareholding in other several sectors also. This has already given rise to many questions from foreign companies. Indonesia’s legal system continues to pose obstacles for foreign investors in various fields of law. Changes occurred in labor, tax, corporate, compliance and litigation. This changes is only applied to the new investment approval effective from 24th April 2014. While a grandfather clause is being applied by the Investment Coordinating Board (BKPM), which means that licenses issued by the previous Negative list rules will continue to apply. The current negative list will apply to all future approvals or licenses. In case a foreign distributor company operates under a grandfather clause and wants to extend its selling capacity, it will be treated by BKPM on case-by-case basis.
Some business fields which are increasing open to foreign investor
Some other business fields which are conditionally open for investment
Some business fields which are now totally closed to foreign investment
The above limitation of ownership for foreign ownership will not be a matter as long as foreign investor appoints their local shareholder properly.
Another latest update regulation for foreign investors who decide to go ahead with PMA company registration is about the obligation to fulfill investment realization. Generally known that the minimum investment plan for PMA is above USD 1 million with the paid-in capital above USD 250,000. Started from April 2015, foreign investor is not only required to breakdown in details of their planned investment capital but also to get the permanent license, foreign investor firstly need to fulfill the investment realization above USD 1 million based on their investment plan. This investment realization should be proven through financial statement since Indonesian government would like ensure that all foreign investors who invest in Indonesia have sufficient capital to run their business.
Regarding the authority to issue trade business license, from December 2014 through Ministry of Trade Regulation No 96/M-DAG/PER/12/2014, Ministry of Trade has been delegated its authority to issue related trade business license to the Head Capital Investment Coordinating Board (BKPM). This licenses such as Business License for Foreign Representative Trading Company, Business License for Direct Selling, Approval to Organize an International Trade Exhibition, Convention or Seminar and General Importer Identification Number and Producer Importer Identification Number and Producer Importer Identification for investment companies.
Another new regulation from Ministry of Trade through Ministry of Trade Regulation No 90/M-DAG/PER/12/2014 on December 2014, regulate details of classification of warehouses, requirements for company which have warehouses to obtain Warehouse Registration certificate called Tanda Daftar Gudang (TDG) and obligation to report the warehouses administration records to Director General of Trade. This latest regulations will impose to both local and PMA wit business activities on export/import and distribution.
From the end of March 2015, Bank Indonesia issued regulation about the obligation to use IDR in the territory of Indonesia through its regulation Number 17/3/PBI/2015. This regulation as the response due to usage of foreign currency in transaction downward continuation to the IDR exchange rate and it can be great affect to the IDR’s stability in the market. The mandatory of using IDR can be occurred in the specific conditions such as for payment purposes, for obligation that should be done using money and deposit money to bank account. However, some conditions are allowed for both local and foreign to use IDR e.g. for international transaction.
Under normal circumstances, the tax audit should be conducted five years from the date of a tax return. Any discrepancy found within an audit will be charged the applicable penalties plus 2% interest penalty, per month. In the most recent development however, the director general of tax will reconsider an every lost appeal result. This reconsideration process creates huge uncertainty in the tax dispute resolution process in Indonesia, as the timing for a decision from the Supreme Court is vague.
Income tax decreased from 28 percent to 25 percent. Indonesia also has made several other tax facilities, namely the reduction of corporate income tax for listed companies to 20%, tax holidays, investment allowances and other reductions. In total there are 45 tax facilities available:
Tax payer who invest in:
52 business sectors or
77 business sectors in certain regions
Rules and regulations, however, are not always in line. It is advisable to secure tax reduction for foreigner investors. Indonesia has the Double Tax Avoidance Agreement (DTA). A foreign company receiving specific income from an Indonesia resident company should carefully consider its structure and DTA position. A proven payroll processing company can help you successfully claim a DTA benefit.
Signing agreements should be always be secured by following the law in case the agreement is not being fulfilled. There are 2 main arbitration clauses in use and the Civil Code gives parties the freedom to agree on one of them.
1. SIAC – Indonesian Parties Singapore
2. BANI – Indonesian National board of Arbitration
SIAC is considered for international arbitration awards. BANI is a national award and therefore it will be considered more by companies because SIAC is not automatically accepted in Indonesia and can therefore be time consuming. Lawyers should always handle these proceedings.
Since 2011, Intellectual property rights (IPR) have been in force in Indonesia through the BAM HKI (Arbitration and Mediation Board for Intellectual Property Rights) is. Before BAM HKI was established, IPR disputes could be settled through Commercial Court or BANI.
BAM HKI is authorized to receive, examine and decide disputes relating to:
• Geographic indications
• Industrial designs
• Layout-designs of integrated circuits
• Trade secrets
• Plant varieties
• other fields related to IPR
Even though the current climate is very challenging, there are some positive trends and a more level playing field may be on the horizon. To deal with this some change in regulations which relate to investment in Indonesia, we are on your disposal to assist you provide the details information and consultancy for you to successfully penetrate Indonesian market amidst to tighter business regulations.
Check the latest regulation on Indonesia 2018 Negative Investment List.
Edy Tarlesno holds various certifications and a respectable degree to be an expert on internal and external legal compliance in Indonesia. His experience starts from bankruptcy and insolvency, leading to a prominent social foundation consultancy in Indonesia.