Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- Southeast Asia
- Capital
- Jakarta
- Currency
- IDR
- Languages
- Indonesian (official)
- ISO code
- ID / IDN
Jurisdictions
- Indonesia — National level; SEZs have separate rules
China's direct investment
- China's 2025 FDI flow
- 15.9 USD 100m
- End-2025 FDI stock
- 263.9 USD 100m
- Flow rank
- #12 by flow
Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Industries to study: Cross-border e-commerce & consumer brandsManufacturing & plant relocationEVs, batteries & energy storageInfrastructure, engineering & energyAgriculture, food & minerals
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Under the positive investment list, 100% foreign ownership in many sectors
- Applies to
- Some sectors reserved for SMEs or capped
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in Indonesia consistent
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Foreign-investment limited company (PT PMA)
- Applies to
- Required form for foreign direct investment
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Under the positive investment list, 100% foreign ownership in many sectors
- Applies to
- Some sectors reserved for SMEs or capped
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in Indonesia consistent
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Obtain a Business Identification Number (NIB) and risk-based licences through OSS
- Applies to
- From October 2025 minimum paid-up capital for foreign-owned companies fell to IDR 2.5 billion (BKPM Reg. 5/2025); investment per business code generally must exceed IDR 10 billion excluding land and buildings
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
- Cross-check
-
Tax Guide for Chinese Residents Investing in Indonesia consistent
OSS business licensing system consistent
Local director / representative
Whether a locally resident director, manager or representative is required.
At least one director and one commissioner; no nationality requirement
- Applies to
- Foreigners holding these roles in Indonesia need work and stay permits
- Jurisdiction
- Indonesia
- Source
- Directorate General of General Legal Administration (AHU)
Registration authority
Primary authority for company or commercial registration.
AHU (legal entity registration) and the OSS system
- Applies to
- Articles must be executed by an Indonesian notary
- Jurisdiction
- Indonesia
- Source
- Directorate General of General Legal Administration (AHU) Ministry of Investment / BKPM
Local registered address
Whether a local registered address or premises is required at incorporation.
An address in Indonesia that complies with local zoning
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Beneficial owner information must be reported to the Ministry of Law
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Directorate General of General Legal Administration (AHU)
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
22%
- Applies to
- Listed companies with at least 40% free float and other conditions get 3 points off (19%); smaller companies get 50% off part of their profit
- Jurisdiction
- Indonesia
- Source
- Directorate General of Taxes (DJP)
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in Indonesia consistent
Corporate income tax consistent
Tax authority
Authority responsible for corporate tax registration and filing.
Directorate General of Taxes (DJP)
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Directorate General of Taxes (DJP)
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT (PPN): nominal 12%; non-luxury goods effectively taxed at 11% via a tax-base adjustment
- Applies to
- Check current DJP rules
- Jurisdiction
- Indonesia
- Source
- Directorate General of Taxes (DJP)
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in Indonesia consistent
Corporate income tax consistent
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
20% withholding generally applies to dividends paid to non-residents
- Applies to
- May be reduced under tax treaties
- Jurisdiction
- Indonesia
- Source
- Directorate General of Taxes (DJP)
- Cross-check
-
Tax Guide for Chinese Residents Investing in Indonesia consistent
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Indonesia
- Source
- State Taxation Administration (China)
05Banking & Payments
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Bank Indonesia and the Financial Services Authority (OJK)
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Bank Indonesia Financial Services Authority (OJK)
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No general capital controls, but rupiah-use and FX reporting requirements apply
- Applies to
- Natural-resource export proceeds must be retained onshore for set shares and periods (PP 8/2025 as amended in 2026, in state-owned banks)
- Jurisdiction
- Indonesia
- Source
- Bank Indonesia
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) partly consistent Both guides describe relatively free FX management with free capital movement and do not mention export-proceeds retention
Tax Guide for Chinese Residents Investing in Indonesia partly consistent
Foreign exchange and payments consistent
06Employment
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Ministry of Manpower (Kemnaker)
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Ministry of Manpower (Kemnaker)
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) partly consistent The Chinese guide calls it the Ministry of Labour — another translation of the same body (Kemnaker)
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Foreign worker utilisation plan (RPTKA) plus limited stay permit (KITAS)
- Applies to
- Some positions may not be held by foreigners
- Jurisdiction
- Indonesia
- Source
- Ministry of Manpower (Kemnaker)
- Cross-check
-
Outward Investment and Cooperation Guide: Indonesia (2025 ed.) consistent
Social security contributions
Main employer social security schemes for local and foreign employees.
BPJS Ketenagakerjaan and BPJS Kesehatan
- Applies to
- Foreign employees working in Indonesia beyond a set period must also enrol
- Jurisdiction
- Indonesia
- Source
- BPJS Ketenagakerjaan
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
DJBC
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Directorate General of Customs and Excise (DJBC)
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
ASEAN, RCEP, ASEAN–China FTA and others
- Applies to
- Preferential tariffs require meeting rules of origin
- Jurisdiction
- Indonesia
- Source
- Directorate General of Customs and Excise (DJBC)
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Ministry of Investment / BKPM
- Applies to
- Ordinary companies
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Special economic zones (KEK), bonded zones and others
- Applies to
- Different tax and customs arrangements within zones
- Jurisdiction
- Indonesia
- Source
- Ministry of Investment / BKPM
09Digital & IP
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Personal Data Protection Law (UU PDP)
- Applies to
- Sets transfer and breach-notification duties for controllers and processors
- Jurisdiction
- Indonesia
- Source
- Ministry of Communication and Digital Affairs
IP office
Authority for trademark and patent filing and registration.
DJKI
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- Indonesia
- Source
- Directorate General of Intellectual Property (DJKI)
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Indonesia
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Foreign-entity setup flow：Obtain a Business Identification Number (NIB) and risk-based licences through OSS
- 1Decide model and jurisdiction
- 2Confirm licences
- 3Prepare documents
- 4Incorporate
- 5Register for tax
- 6Open bank account
- 7Obtain operating licences
- 8Start operations
Generic steps without times or fees; rely on the facts and official sources on this page.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Green guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻印度尼西亚共和国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- Investment Ministry of Investment / BKPM OSS business licensing system · Accessed 2026-11-12
- Tax Directorate General of Taxes (DJP) Corporate income tax · Accessed 2026-11-12
- Company registration Directorate General of General Legal Administration (AHU) Company registration and beneficial ownership reporting · Accessed 2026-11-12
- Financial regulation Bank Indonesia Foreign exchange and payments · Accessed 2026-11-12
- Financial regulation Financial Services Authority (OJK) Financial supervision · Accessed 2026-11-12
- Labour Ministry of Manpower (Kemnaker) Foreign workers and labour rules · Accessed 2026-11-12
- Labour BPJS Ketenagakerjaan Employment social security · Accessed 2026-11-12
- Customs Directorate General of Customs and Excise (DJBC) Customs · Accessed 2026-11-12
- Legislation Ministry of Communication and Digital Affairs Personal data protection · Accessed 2026-11-12
- Company registration Directorate General of Intellectual Property (DJKI) Trademarks and patents · Accessed 2026-11-12