Indonesia (ID)
Bali and beyond — Indonesia is a vast tropical archipelago of 17,000+ islands offering affordable living, extraordinary cultural diversity, world-class nature, and a rapidly growing digital economy that attracts digital nomads, retirees, and professionals from around the globe.
Capital: Jakarta
Region: Asia
Language: Indonesian
Currency: IDR (Rp)
Cost of living: Very affordable (index 28)
Emergency: 112
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Business Setup
Start a business or go freelance in Indonesia.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Obtain Digital Nomad Visa (E33G) or Second Home Visa if working for foreign clients remotely — this is the legal framework for independent remote workers
- 2 Register NPWP (tax number) if earning above Rp60 million/year from any Indonesian source
- 3 If serving Indonesian clients: establish PT PMA (mandatory for generating local revenue legally)
- 4 Open Indonesian bank account (BCA Jenius or Mandiri recommended) for receiving payments
- 5 Set up Wise or Instarem for receiving international payments from foreign clients
- 6 Maintain accounting records and issue invoices for all income
- 7 File SPT Tahunan (annual tax return) by 31 March if you have Indonesian tax obligations
Tax registration
NPWP (Nomor Pokok Wajib Pajak) mandatory for individuals earning above Rp60 million/year. Apply at local DJP Pratama office or via pajak.go.id. Freelancers on E33G Visa working for foreign clients: Indonesian tax does not apply to foreign-source income.
VAT threshold
PPN (VAT) registration mandatory for businesses with annual revenue above Rp4.8 billion. Below this threshold: exempt from VAT but must still maintain income tax obligations.
Invoicing
Indonesian company invoices must include company name, address, NPWP, invoice number, date, description of services, and amount. e-Faktur (electronic VAT invoice) system mandatory for PKP (VAT-registered taxpayers). Individual freelancers without PT: issue kuitansi (receipt) rather than formal invoice.
Social security
Self-employed (not on company payroll): can enroll voluntarily in BPJS Kesehatan (Class I–III: Rp150,000/35,000 per person/month) for health coverage. BPJS Ketenagakerjaan: mandates enrollment for informal sector workers in JHT and JKK — optional but recommended.
💡 The key decision for freelancers is: are your clients Indonesian or foreign? Foreign clients + remote work = Digital Nomad Visa (E33G) is sufficient and no Indonesian income tax applies. Indonesian clients = PT PMA required to legally transact in Indonesia. Operating without correct structure risks fines and deportation.
🏢 Business Structures
PT PMA · Perseroan Terbatas Penanaman Modal Asing
Foreign Investment Limited Liability Company
IDR 10 billion (approx. USD 650,000) statutory investment plan; practical operational minimum approx. USD 200,000. Paid-up capital minimum IDR 10 billion (announced) but authorised capital requirement reviewed by BKPM.
Min. capital
4–8 weeks via OSS-RBA (Online Single Submission Risk-Based Approach) at oss.go.id
Setup time
Liability: Limited to shareholder investment; shareholders not personally liable for company debts
Setup cost: USD 3,000–10,000 in professional fees (notary, legal, BKPM registration, OSS licencing). Additional ongoing compliance costs.
Best for: Foreign investors and entrepreneurs legally operating a business in Indonesia; the only structure allowing majority or 100% foreign ownership in most sectors. Required to work for Indonesian clients, issue Indonesian invoices, or generate revenue from Indonesian customers. Also required for foreign workers who want to sponsor their own KITAS.
PT · Perseroan Terbatas
Domestic Limited Liability Company
Rp50,000,000 (IDR 50 million) authorised capital; 25% paid-up minimum (Rp12,500,000). Mikro/Kecil: lower thresholds available.
Min. capital
2–4 weeks
Setup time
Liability: Limited to shareholder investment
Setup cost: USD 500–2,000 via notary and OSS registration
Best for: Indonesian nationals and domestic businesses. Foreigners CANNOT be shareholders in a regular PT. Maximum 49% foreign ownership allowed only in sectors open to foreign investment via PT PMA; not via PT directly.
KPPA · Kantor Perwakilan Perusahaan Asing
Foreign Company Representative Office
No minimum capital requirement. Cannot generate revenue in Indonesia.
Min. capital
4–8 weeks via BKPM and Ministry of Trade
Setup time
Liability: Parent company bears all liability
Setup cost: USD 1,500–4,000 in registration and legal fees
Best for: Foreign companies wanting a marketing, liaison, or business development presence in Indonesia without generating local revenue. Cannot sign sales contracts, issue invoices, or conduct direct business operations in Indonesia. Foreign staff can obtain KITAS under KPPA.
CV · Commanditaire Vennootschap
Limited Partnership
No statutory minimum
Min. capital
1–2 weeks
Setup time
Liability: Active partners have unlimited liability; passive (sleeping) partners limited to investment
Setup cost: USD 200–500
Best for: Indonesian nationals only. Foreigners CANNOT be shareholders or directors in a CV. Suitable for small Indonesian businesses.
Usaha Perorangan · Usaha Perorangan (NIB via OSS)
Sole Proprietorship
None (micro/small business category)
Min. capital
1–3 days via oss.go.id
Setup time
Liability: Unlimited personal liability
Setup cost: Free via OSS portal with NIB (Business Registration Number)
Best for: Indonesian nationals operating micro or small businesses. Foreigners CANNOT register. Indonesian-national spouse of a foreigner may register and operate a sole proprietorship.
Yayasan · Yayasan
Foundation (Non-Profit)
Rp10,000,000 initial assets
Min. capital
4–6 weeks
Setup time
Liability: Limited — foundation assets separate from founders
Setup cost: USD 500–1,500
Best for: NGOs, charities, educational institutions, and non-profit organisations. Foreigners can be founders or board members. Cannot distribute profits to founders.
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