Starting a business in
🇮🇩Indonesia
Checked November 4, 2026 · How we score
Corporate tax
22%
Top income tax
35%
Setup from
$3,500
all-in, first year
Time to form
5 weeks
visit usually needed
Taxes in Indonesia
| Corporate income tax | 22% 22% standard rate (listed companies with 40%+ public float get a 3-point discount). Small businesses with turnover up to IDR 4.8bn can pay a 0.5% final tax on gross turnover for a limited period, and companies with turnover up to IDR 50bn get a 50% reduction on the first IDR 4.8bn of profit. A 15% top-up tax applies to large multinational groups from 2025. |
|---|---|
| Personal income tax (top) | 35% Progressive rates of 5%, 15%, 25%, 30% and 35% (35% above IDR 5bn). Individuals staying more than 183 days in a 12-month period (or intending to live in Indonesia) are tax residents on worldwide income. Some foreign-source income of new residents may be exempt for up to four years under conditions; do not assume this applies automatically and confirm with a local adviser. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No separate capital gains tax; gains are taxed as ordinary income, except sales of listed shares (0.1% final tax on gross value) and real estate (2.5% final tax, 0% in some cases). |
| Dividend withholding (non-residents) | 20% |
| VAT / GST | 11% |
| Social security | BPJS social security and health contributions apply to employees (employer about 10-11% of salary); foreigners working 6+ months must join BPJS. VAT is 11% (12% on luxury goods only). |
Forming a company in Indonesia
| Usual entity | PT PMA (foreign investment limited liability company) |
|---|---|
| Minimum capital | $155k |
| Setup cost (all-in) | $3,500–$8,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 5 weeks |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
The E33G Remote Worker visa (up to 1 year, extendable) needs a contract with a company outside Indonesia and about $60,000 a year of income and bars local work. Investors can use the 5- or 10-year Golden Visa (about $350,000 in a PT PMA or government bonds for 5 years, higher for 10) or the Second Home Visa (IDR 2bn deposit). Company directors normally need a work KITAS (KITAS for directors needs an IMTA/RPTKA and a minimum investment plan).
| Digital nomad visa | Remote Worker KITAS (E33G), $5,000/month income |
|---|---|
| Golden visa | Yes, from $350k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Remote Worker KITAS (E33G)
Visa for remote workers with a foreign employer or freelance contracts and at least about $60,000 in annual income; tax treatment of foreign income after 183 days is not automatically exempt.
Golden Visa
Investor residence of 5 or 10 years launched in 2024, with company, individual and family routes; figures start around $350,000 for individual investors.
Second Home Visa
5- or 10-year residence for foreigners who deposit or invest IDR 2bn (about $125,000) in an Indonesian bank or property and meet other criteria.
Special Economic Zones
Tax holidays of up to 20 years and customs benefits in zones such as Batam, Kendal and Mandalika for qualifying investments.
Pros and cons
Why founders pick Indonesia
- Large domestic market and growing digital economy
- E33G remote worker visa and Golden Visa options
- Low cost of living and hiring
- Tax holidays in special economic zones
Watch out for
- PT PMA minimum investment and paid-up capital rules are high
- Residents are taxed on worldwide income; the remote visa does not give a tax exemption
- Slow, paperwork-heavy company and visa procedures
- Complex local compliance and foreign director KITAS requirements
Best for: Remote workers wanting a Bali base with a formal visa · Companies selling to Indonesia's 270 million consumers · Manufacturers using special economic zones
Indonesia: common questions
What is the corporate tax rate in Indonesia?
The standard corporate income tax rate is 22%. Small businesses with turnover under IDR 4.8 billion can pay a 0.5% final tax on turnover for a limited period, and large multinational groups face a 15% top-up tax from 2025.
How much income do you need for the Indonesia remote worker visa?
The E33G Remote Worker visa generally requires proof of at least $60,000 in annual income from outside Indonesia and a contract with a foreign employer or clients. It is valid for up to one year, can be extended, and does not allow local employment.
Does Indonesia tax foreign income of remote workers?
Individuals who spend more than 183 days in Indonesia in a 12-month period become tax residents and are taxable on worldwide income. A four-year exemption on some foreign-source income may be available under specific conditions, but it is not automatic, so confirm with a local tax adviser.
Can a foreigner own 100% of a company in Indonesia?
Yes. A PT PMA allows 100% foreign ownership in most sectors under the 2021 positive investment list, but it needs a minimum investment plan above IDR 10 billion per business line (excluding land and buildings) and at least IDR 10 billion authorised capital, with a quarter of it paid up. Some sectors remain restricted.
How much does it cost to set up a company in Indonesia?
Setting up a PT PMA through an agent typically costs about $3,500 to $8,000 in fees, plus the required paid-up capital of roughly IDR 2.5 billion (about $155,000). Annual accounting, tax and reporting (LKPM) usually costs $3,000 to $8,000.
Sources
- Directorate General of Taxes (Indonesia)
- Directorate General of Immigration (Indonesia)
- OSS - Online Single Submission
- PwC Tax Summaries - Indonesia
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.