Self-Employment and Starting a Business

Information on who can set up their own business in Indonesia and who to contact...

It is legal for foreigners to own their own businesses in Indonesia and many foreigners do own businesses in the tourist industry. Indonesian business partners are not required.

Creating a business is a complex process that differs from person to person because the paperwork depends on what kind of business is involved, who the owners are, and the specific contractual arrangement. For example, foreigners are not allowed to own land, so that if acquiring land is a necessary part of the business, then a long-term lease will need to be negotiated.

The minimum capital required for creating a foreign investment company is USD100,000. Such a company is called a Limited Company (Perseroan Terbatas - PT), or Foreign Direct Investment (Penanaman Modal Asing - PMA). An application must be submitted to the Investment Coordinating Board (BKPM), which is part of the Ministry of Manpower (Kementerian Tenaga Kerja).

Applicants should expect variations in procedure as local custom always applies in Indonesia, and any information should be confirmed with the Investment Coordinating Board (BKPM).

Indonesian Consulates can also be contacted for more information. If already in Indonesia, interested parties should consult the Ministry of Manpower and other foreign business owners.

Business Associations

  • American Chamber of Commerce in Indonesia
  • British Chamber of Commerce in Indonesia
  • European Business Chamber of Commerce
  • Indonesia Australia Business Council (IABC)
  • Indonesia Canada Chamber of Commerce
  • Singapore Chamber of Commerce Indonesia