Company Incorporation in Indonesia: Your Complete Guide

Establishing a company is the first step to expanding your business operations into Indonesia. There are many options business owners can opt for their incorporation Indonesia, but the most common types are a Foreign-Owned Company or Representative Office. Each has its benefits, and one may be better suited for you based on your business expansion objectives.
Table of Content

Types of Entities for Foreign Investors in Indonesia

Foreign-owned Company

If you are a foreign investor that wants full control of your business, then establishing a fully foreign-owned entity is the best option you can opt for. This is the only legal entity in Indonesia that allows up to 100% foreign ownership. However, each sector has regulations on their permitted business activities as well as the maximum amount of shares foreigners can own determined by the Positive Investment List.

General Representative Office

A representative office (RO) is suitable for foreign investors and business owners that are at the early stage of expanding into Indonesia. RO’s allow foreign businesses to test the Indonesian market before establishing any commercial operations. RO’s also work best for non-sales activities, such as customer service support, approaching potential clients, as well as conducting marketing and brand awareness initiatives.

Representative Office for Business Trading

This is a representative office that is established specifically for business trading. Both general and trading RO’s are prohibited from conducting business activities that generate financial income. However, a trading RO may be established in any part of Indonesia, whereas a general RO is not able to do so.

Representative Office for Construction Company

This is a representative office specifically established for foreign construction companies. You may engage in large-scale construction projects, but only under a joint operation with a local company known as local company. Despite its limitations, it is still a good start for foreign construction companies to set their footprint in Indonesia, as they are allowed to collaborate on building projects without obtaining a construction permit.

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.

Lead Form

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.

Frequently Asked Questions

What Our Clients Say

Our Clients Find This Helpful. Please Review.
Rating: 5.0/5. From 1 vote.
Please wait...