3 important things to know when setting up a company in Indonesia

3 important things to know when setting up a company in Indonesia

There are factors that can make your company successful when you set up your company in foreign countries. It does not matter whether you are a multinational company or a small-medium enterprise, each company needs to make a proper planning. In fact, planning is one of the many things that you need to do carefully and properly when you set up a company abroad. With this article, we aim to provide you more information about setting up a company in Indonesia. In this article, we explain three important things that you need to remember when setting up company in Indonesia

Indonesian Regulations

For foreign companies who want to succeed in Indonesia, they must be aware of government regulations and follow all their requirements. Often those regulations are confusing the investors which resulted in miscommunication and delayed process. We suggest you to search for local partners who are capable and expert with sort of things. Only then, the progress of setting up a company in this country will run smoothly.

Aware of Indonesia diversity and cultures.

Indonesia is also a country with so many races, languages and cultures. Taking that into consideration, we strongly suggest the foreign investors to find local consultant companies so that your company can receive assistance in setting up a company in Indonesia. Even though you might think that your company has enough knowledge of Indonesian market, it still does not guarantee that your company can operate smoothly and receive a good outcome. This is because Indonesians still follow the traditions, customs and cultures. Therefore, you might not know which custom to follow when you deal with legal and other matters. So, our suggestion to the foreign investors is to learn about Indonesian cultures by themselves and also from the local consultant companies.

Enough capital prepared

The last thing that you must remember is that your company must have enough capital. Besides the regulations required your company to have a minimum amount of investment to be able to enter Indonesian Market. This is also to make sure that your company can operate in a long-term. BKPM (Indonesia Investment Coordinating Board) requires a foreign-owned company to present a business plan equivalent to at least IDR 10 Billion. 25% of the investment is needed to be paid up front as capital. The sum is equivalent to IDR 2.5 Billion, which can be presented as cash or fixed assets, however, land and buildings are excluded from the amount and not applicable as the paid-up capital.

Many foreign companies have to shut down their businesses in Indonesia because of the money issue. So, we want you to plan your project carefully, especially for the financial part.


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