Why Is Indonesia An Excellent Destination For Incorporating A Company?

Indonesia is a fast-developing Asian nation whose GDP has been growing steadily over the past few years. The nation’s per capita income has increased in recent years, and people’s purchasing power shows significant improvement. Indonesia has a large domestic market, which makes it ideal for foreign investment. If you are looking to invest, this is the right time for incorporating a company in Indonesia.

Benefits of incorporating a company in Indonesia

These are the advantages of starting a company in Indonesia:

  1. Low living costs: The costs of living in Indonesia, including food, rent, and utilities, are much lower compared to other nations. The low overheads will enable your business to get you more returns on your investment.
  2. Progressive middle-class: The nation’s middle-class has been growing rapidly, and this is a great benefit to foreign investors on the lookout for potential customers. With increased purchasing power, there is a growing demand for international products, along with domestic products
  3. Excellent growth prospects: The country is made up of more than 15000 islands, thus providing a huge potential for business expansion
  4. Advantageous geographic location: Indonesia is located next to other developed countries like Singapore, Malaysia, and Australia, which makes growing business operations favorable for investors. The nation’s access to the ready markets of its neighbors presents a huge advantage
  5. Improved regulations for foreign investors: After 2016, the Indonesian government has revised the percentage of maximum foreign investment in various business classifications.

Selecting the right business entity

Investors starting a business in Indonesia have the following options of business structures:

  • Local company: The rules state that a local company must be 100% owned by a local resident.
  • Foreign company (PT PMA): In this type of business entity, the maximum percentage of ownership depends on the type of business and industry. Foreign investors need to take note of restrictions in some sectors listed in the Indonesia Negative Instrument List (DNI).

All these favorable factors make Indonesia the preferred location for investment in Asia. 3E Accounting Indonesia has years of experience assisting entrepreneurs with business registration Indonesia. Our well-qualified team of chartered accountants and taxation experts provides comprehensive business registration in Indonesia at affordable costs. With support from our expert team, you can easily incorporate your company in Indonesia and run your business efficiently and profitably.