Everyday Banking
Find the support you need to help your business get ahead, along with clear pricing so you know where you stand
About business bank accounts
Find an account to suit your business - whether you're just starting out or looking to switch banks
About business cards
Separate your business spending, stay in control of your expenses and reduce your need for cash
About business savings accounts
Earn interest on surplus cash while keeping funds easily available for your business
About credit and lending
Let us help your business to achieve its ambitions with our range of credit and lending facilities
About ways to bank
Access and manage your money on the move – whenever and wherever you need to
About finance and borrowing
Discover a wide range of business finance solutions to help you achieve your business goals
About business cards
Separate your business spending, stay in control of your expenses and reduce your need for cash
About credit and lending
Let us help your business to achieve its ambitions with our range of credit and lending facilities
About exports
Take advantage of our international expertise to help you remove some of the risks associated with global payments
About global receivables
Provide your customers with a choice of ways to pay - online and in your retail outlet - to help you improve your cash flow
About imports
Discover secure ways of receiving your goods and use our trusted payment methods to help you trade with confidence
About insurance
Find the cover you need quickly and easily with a tailored insurance policy from our preferred partners
About receivables finance
Free up your working capital and keep your business running smoothly with our invoice finance solutions
About payments
Let us take the complexity out of payments and handle them efficiently so you can focus on running your business
About business cards
Separate your business spending, stay in control of your expenses and reduce your need for cash
About clearing and foreign currency payments
Take advantage of our expertise and you'll be able to make and receive domestic and global payments with ease
About Global payables
Let our payroll experts simplify your payroll management so you can make payments swiftly and securely
About global receivables
Provide your customers with a choice of ways to pay - online and in your retail outlet - to help you improve your cash flow
About protection
Protect what matters most with business insurance policies and workplace pensions provided by our preferred partners
About exports
Take advantage of our international expertise to help you remove some of the risks associated with global payments
About guarantees
Benefit from our extensive experience of providing guarantees so you can trade with increased security and reduced risk
About imports
Discover secure ways of receiving your goods and use our trusted payment methods to help you trade with confidence
About insurance
Find the cover you need quickly and easily with a tailored insurance policy from our preferred partners
About receivables finance
Free up your working capital and keep your business running smoothly with our invoice finance solutions
About import and export
Find the guidance you need to help you trade securely and cost-effectively overseas
About exports
Take advantage of our international expertise to help you remove some of the risks associated with global payments
About guarantees
Benefit from our extensive experience of providing guarantees so you can trade with increased security and reduced risk
About imports
Discover secure ways of receiving your goods and use our trusted payment methods to help you trade with confidence
About ways to bank
Access and manage your trade requirements – whenever and wherever you need to
This is one of a series of Global Business Guides designed for businesses wishing to expand into another country/territory. This Global Business Guide was produced in January 2016. The materials contained in this document provide a snapshot at that time and were based on the law enforceable and information available at that time.
Indonesia continues to implement measures to open up the archipelago to foreign investment, including removing sectors from its negative investment list. Consequently, foreign direct investment (FDI) flows continue to grow; FDI into Indonesia increased by 19.2 per cent year-on-year to IDR365.9 trillion in 2015.
Indonesia ranked 109th in the World Bank's 2016 Doing Business rankings, rising from 120th in the year prior. The rankings recognised a number of reforms enacted to make doing business easier. Indonesia made starting a business in Jakarta easier by reducing the time needed to register with the Ministry of Manpower. It also improved access to credit by enabling searches of the collateral registry by the debtor’s name. Paying taxes became easier and less costly through the introduction of an online system for paying social security contributions and a reduction of both the rate paid by employers and the ceiling for the contributions.
Key facts about starting a business in Indonesia:
Indonesia's attractiveness as an investment location can be attributed to a number of factors, including its abundant natural resources, young workforce and large domestic market. Nevertheless, in order to make an informed decision, it is critical to understand the nuances of any local regime. The manner in which people conduct business in Indonesia may differ from the home countries of investors. Furthermore, variations on these distinctions may exist depending on the region and the industry in which a company operates.
Indonesia's official language is Indonesian or 'Bahasa Indonesian' which is a standardised dialect of the Malay language. Due to the size and structure of the country, most of the population will speak regional dialects. However, Bahasa Indonesian is the lingua franca of business.
Business in Indonesia is formal and companies tend to be hierarchical. Business attire is conservative. A handshake is the typical business greeting and business cards will usually be presented after initial introductions. Gifts are generally not exchanged as part of business interactions.
Those looking to establish a business in Indonesia may look across Southeast Asia for alternative options. However, Indonesia can be differentiated on the following factors:
While there are significant opportunities for investment in Indonesia, a number of challenges remain. The legal and regulatory system is often uncertain and changes can be enacted quickly. Complex bureaucracy means that the country's 'Ease of Doing Business' ranking remains low and businesses will face difficulties entering the market.
This guide has been developed to provide businesses with an overview of Indonesia, its legal regime, start-up and market entry considerations, tax and customs requirements and a general summary of the factors that may affect the decision to do business in Indonesia. However, the information contained in this document is generic in nature and you should not act or rely on it without obtaining specific professional advice.
Please note that the Global Business Guides may only be available in English.
1 | FDI Statistics |
2 | Doing Business Rankings |
3 | Limited Stay Visa |
4 | Indonesia PPP (update figures) |
Download Global Business Guide - Indonesia (2.54MB, PDF)
Disclaimer
This document is issued by The Hongkong and Shanghai Banking Corporation Limited, Indonesia (the Bank). This guide is a joint project with Grant Thornton. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. It is not intended for distribution to anyone located in or resident in jurisdictions which restrict the distribution of this document. It shall not be copied, reproduced, transmitted or further distributed by any recipient. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. Whilst every care has been taken in preparing this document, the Bank and Grant Thornton makes no guarantee, representation or warranty (express or implied) as to its accuracy or completeness, and under no circumstances will the Bank or Grant Thornton be liable for any loss caused by reliance on any opinion or statement made in this document. Except as specifically indicated, the expressions of opinion are those of the Bank and are subject to change without notice. The materials contained in this document were assembled in January 2016 and were based on the law enforceable and information available at that time.
Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and its member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by GTIL for loss occasioned to any person acting or refraining from acting as a result of any material in this publication.
HSBC retains all responsibility for the translation of the content of this guide. In the event of any discrepancy or inconsistency between the English and translated versions of this Guide, the English version shall apply and prevail.
Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.
Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.