starting a business in semarang, indonesia

Your Guide to Foreign Company Relocation to Semarang, Indonesia

  • InCorp Editorial Team
  • 30 April 2020
  • 4 minute reading time

As the tenth most populated city in Indonesia and the capital city of Central Java, Semarang has always been a popular destination for international investors for starting a business in Indonesia.

Lately, an increasing number of businesses from different countries have relocated to Semarang, especially those from China, Singapore, Japan, and South Korea.

Over the past few years, the economy in Semarang has been growing, evidenced by the appearance of many high-rise buildings, industrial parks, and infrastructure.

Indonesian President, Joko Widodo, also announced the opening of 35 business sectors in Indonesia for full foreign ownership, and Semarang received the Pro-Investment Reward — all in all indicating the significant growth of the economy and increase of foreign investments in this dynamic business atmosphere.

With the Indonesian government’s implementation of new tax rates of attracting more foreign investments for starting a business in Indonesia, foreign company relocation to Semarang has become even more prominent.

Semarang: An Ideal Location for Starting a Business in Indonesia & Foreign Company Relocation

There are reasons that make business owners decide to relocate their companies to Semarang.

These reasons are often beneficial to the operation and growth of their businesses:

  • Operational, infrastructure and labour costs are lower in Semarang
  • The increasingly vibrant economic conditions that boost profits
  • More business opportunities especially when the government opened up more business sectors for foreign ownership
  • Large workforce due to the huge population in the country
  • Large consumer population and increasing middle-income population
  • Rising labour wages in neighbouring countries such as China also leads to more relocation of companies from China to Indonesia, especially in the wake of the trade war effect
  • Rapidly improving infrastructure and technology

 

How to Relocate a Foreign Company to Semarang, Indonesia

Relocating a foreign company to Semarang doesn’t have to be complicated if all the legal requirements are fulfilled.

Though the process may not be complicated, it could take up a business owner’s tremendous amount of time to do so. On average, the relocation process of a foreign company takes approximately six months to complete.

Also, one thing to take note of is that the foreign company relocation is only possible when the business owner possesses a work permit, related visa, business licenses, and other registration documents.

A business owner who has relocated its business to Semarang doesn’t have to live in Indonesia even though they need to have the said documents, permits, licenses and visas.

The business owner can hire somebody else to manage the company and handle the operations, and they will only have to visit the country at the beginning of the setup or when necessary.

 

Next Steps after Relocation

There are still things to be done after the relocation:

  • Business registration and licensing
  • Compliance with legal requirements and regulatory
  • The resident place for the person living in Indonesia and managing the company

 

Starting a Business in Indonesia with Cekindo

Starting a business in Indonesia can be an exciting but challenging undertaking. As always, getting everything right from the beginning is the key to business success.

Therefore, the right guidance and advice are critical. At Cekindo, we have the expertise and experience to take you through the whole complex of relocating your business to Semarang.

Our specialists can advise you on the legal and financial obligations of your company and how to adequately set up and structure your new business in Semarang.

Whether you are opening up new branches, buying another company or franchise, or setting up a new company in Indonesia, our expert business consultants understand all the key aspects of the Indonesian business environment and regulations.

Now, all you need for your business to be up and running in Semarang is in one place – Cekindo. Get in touch with us now to ensure that you’re set up for success. 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.

Get in touch with us.

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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.

Frequent Asked Questions

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.