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Doing Business in Indonesia?

Doing business in Indonesia can be challenging due to its complex regulations and bureaucracy. However, with the right approach and knowledge, it can also be a profitable opportunity. Here are some steps you can take to start a business in Indonesia:​​


Research the market

Before starting a business in Indonesia, it's important to research the market and understand the local business culture. This includes understanding the target market, the competition, and the legal requirements for doing business in the country.

Modern Office

Choose the right legal entity

There are several types of legal entities that you can choose from when starting a business in Indonesia, including a representative office, a foreign direct investment (FDI) company, or a local company. Each entity has different regulations and requirements, so it's important to choose the one that is most suitable for your business.

Modern Office
Image by Michael Dziedzic

Obtain necessary licenses and permits

Depending on the type of business you are starting, you may need to obtain various licenses and permits from the Indonesian government. This can include licenses for importing goods, operating a factory, or employing workers.

Hire local staff

Hiring local staff can be beneficial for your business as they are familiar with the local culture and can help navigate the bureaucracy.

Bali view
Image by Sarah Kilian

Comply with regulations

Indonesia has strict regulations that businesses must comply with, including labor laws, environmental laws, and tax laws. It's important to understand these regulations and make sure your business is in compliance.

Create a network

Building a network of contacts in Indonesia can help you navigate the business environment, find potential partners and customers, and stay informed about new regulations and opportunities.

Image by Mike Kononov
Image by Nick Abrams

Be patient

Doing business in Indonesia can be a time-consuming process. You should be prepared for delays and be patient with the bureaucracy.

It's important to note that laws and regulations can change over time, so it's always a good idea to consult a local lawyer or financial advisor for the most up-to-date information and guidance.

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