All You Need to Know About Doing Business in Indonesia


Over the past 10 years, the economic stability in Indonesia has rendered a stronghold for both local and foreign capital. It shows that Indonesia’s economy has risen by more than 5% per year, making it clear why it is a firm favorite of foreign investors. Indonesia’s business opportunities are plentiful, but first, it is important to understand how to do business in Indonesia to succeed. Here are some important things you need to know before doing business in Indonesia.

Indonesia is ease of doing business

Based on the World Bank’s Doing Business 2018 index, Indonesia ranks 72 in the world. It is ahead of the Philippines (rank 124), behind China (rank 46), and Malaysia (rank 15). The nation is on a business-friendly upward trajectory, reaching 128th in 2013, 114th in 2015, and 73rd in 2017. This positive trend reflects the government’s changes in local regulations adjusting the business environment. Fortunately, it isn’t difficult to establish such good networking here. You can try to understand the business culture of Indonesia by socializing with the local business partners and local employees. This will make your company, especially in the long term, more effective and efficient.

Working and living in Indonesia

To start a business in Indonesia, you need to establish an Indonesian Limited Liability Company, where there should be two parties holding shares in the company. It takes about 52 days to finish all the steps. On the other hand, there is also the possibility of establishing a representative office, but this comes with several restrictions on the operations of a corporation. Another choice is to pick an indirect location, designate a local company to become a sales manager or dealer, and sell your products there. Moreover, you don’t only need to learn how to do business in Indonesia, but also understand how to work and live here. It’s critical for foreigners lacking in-depth familiarity with this country and having no reliable family or a network to depend on. Because Indonesia is not the most business-friendly country in the world. It includes specific cultural complexities that can make matters more complicated for a foreigner.

Use the right language

Last but not least, you might need to learn how to do business in Indonesia using its language. Of course, you need a translator if you don’t speak the Indonesian language. Even though English is the main business language in the world, most Indonesians still use the national language in daily conversation. The translator ix most needed especially when you are working anywhere outside Jakarta. It may also be helpful (although not strictly necessary) to also print your business card in Bahasa Indonesia, so all parties you encounter can interpret it more quickly.



Once you understand how to do business in Indonesia, you can start a business here as soon as possible. Some industries and sectors you can try include aviation, automotive, property, textile, tourism, banking, technology, and entertainment. Hopefully, the above details about some aspects of the foreign business in Indonesia can help you learn about the foreign business company that is settled in Indonesia.