Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
One of the Southeast Asia’s largest economic hub, Indonesia has eclipsed majority of Asian countries such as Singapore, Thailand, Malaysia etc., in terms of its entrepreneurial growth. Due to the wealth of natural resources and stable growth in Indonesia, foreign investors in big numbers have invested in the country. However, setting up a company anywhere in the world encompasses challenge. Knowing the challenges involved beforehand can go a long way in being prepared for the potential challenges. In this article, we provide you with a complete perspective including challenges and benefits of starting a Company in Indonesia.
Table of Contents
Apart from the wealth of natural resources available in Indonesia there are many other reasons why you should start a company there. Below we have explained few of the major benefits that business owners can exploit:
Some of the primary challenges of starting a company in Indonesia includes complex market, business culture, corruption, lack of transparency bureaucratic inefficiency, red tapism, elaborate tax system, among others.
Indonesia is an archipelago with over 17000 islands and 500 languages being spoken. It is a complex market to do business in. This means you need to conduct serious market research, validation and study about which customer segment you wish to target. Hence it is advisable to test the market first before starting a company there. Further, in order to do most forms of businesses you will require obtaining special licenses and permits from the regulatory authority. This can be a challenging tasks if you have to do it all yourself. It can be a time taking administrative hurdle. Investors will be required to interact with different organizations and ministries during the process of doing business in Indonesia.
Corruption has been the biggest obstacle which has reduced investment benefits. While there have been various steps taken to curb corruption in the country, the change has been gradual. However, by moving the process online, the Indonesian government has taken steps to reduce bribery and collusion.
Having discussed about the challenges, Indonesia still remains one of the hotspot locations to start a company and do business. The challenges mentioned above should not discourage any entrepreneur from exploring business opportunities in Indonesia but these have been mentioned in order to make you aware of the obstacles beforehand. The Indonesian government has promised certain structural reforms as priority. Hence going forward one can expect more relaxation in regulations which will reduce formality, ease barrier for investments and tighten norms to fight corruption.
Please note the following tips that can be handy for someone who is looking to expand business to Indonesia:
Read Our Article: How to Register Company in Indonesia?
A joint venture is a strategic business arrangement in which two or more companies collaborate...
With the rising inflation rates and various other economic factors, wealthy Americans are incre...
Before approaching the new suppliers or any other third parties, you should always go for the v...
With the increasing landscape of Fintech Companies, it is increasingly vital that fintech compl...
This blog gives a detailed description through an audit report for industrial waste by examinin...
Are you human?: 1 + 4 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Japan is one of the most politically stable countries in the world. It is the 3rd largest country in the world in t...
19 Dec, 2020
Most of the foreign investors overlook the prospects of doing business in Canada when they are thinking of entering...
10 Sep, 2022
Chat on Whatsapp
Hey I'm Suman. Let's Talk!