Legislation of Indonesia

List of laws and regulations

Law No. 40 of 2007 on Limited Liability Companies

Companies

Law No. 25 of 2007 on Capital investment

Investment

Law No. 13 of 2003 on Manpower

Manpower

Law No. 10 of 1998 Banking Law

Banking

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Tax treaties entered

Algeria

Armenia

Australia

Austria

Bangladesh

Belarus

Belgium

Brunei

Bulgaria

Cambodia

Canada

China

Croatia

Czech Republic

Denmark

Egypt

Finland

France

Germany

Hong Kong

Hungary

India

Iran

Italy

Japan

Jordan

Korea (North)

Korea (South)

Kuwait

Laos

Luxembourg. Malaysia

Mexico

Mongolia

Morocco

Netherlands

New Zealand

Norway

Pakistan

Papua New Guinea

Philippines

Poland

Portugal

Qatar

Romania

Russia

Serbia

Seychelles

Singapore

Slovakia

South Africa

Spain

Sri Lanka

Sudan

Suriname

Sweden

Switzerland

Syria

Taiwan

Tajikistan

Thailand

Tunisia

Turkey

Ukraine

United Arab Emirates

United Kingdom

United States of America

Uzbekistan

Venezuela

Vietnam

Zimbabwe

Tax Exchange Information Agreement (TIEA)

Bahamas

Bermuda

Guernsey

Isle of Man

Jersey

San Marino

List of state regulatory authorities

President of the Republic of Indonesia

https://www.presidenri.go.id/

People’s Consultative Assembly

http://www.mpr.go.id/

Regional Representative Council

https://www.dpd.go.id/

Supreme Audit Agency

https://www.bpk.go.id/

Ministry of Finance

http://www.kemenkeu.go.id/

Ministry of Foreign Affairs

https://kemlu.go.id/

Ministry of Law & Justice

https://lawmin.gov.in/

General Elections Commission

http://www.kpu.go.id/

Central Bank of Indonesia

https://www.bi.go.id/

Corporate info

Legal system

Romano-Germanic

Types of entity

Local company (PT PMDN)
Foreign investment company (PT PMA)
Representative office:
1. Foreign company representative office (KPPA)
2. Representative office for trading (KP3A)
3. Representative office for foreign construction company (BUJKA)

Shelf companies permitted

No

Incorporation timescale for a new company

—

Company suffix

PT

Sensitive words

Bank, Government, Military

Cyrillic alphabet permitted in company name

No

Local registered office

Yes

Local registered agent

No

Information to be kept at the registered office

Financial statements, corporate documents

Seal required, type of seal

The only mandatory element is the name of the company

Redomiciliation (to, from) permitted

—

Director and secretary

Minimum number of directors

1

Residency requirements for directors

No

Corporate directors permitted

No

Directors’ meetings/frequency/location

If necessary, at the place of company registration / place of actual activity

Disclosure to local agent

Yes

Disclosure to public

Yes

Company secretary required

No

Residency requirements for a secretary

No

Qualified secretary required

No

Corporate secretary permitted

No

Shareholder and beneficiary

Minimum number of shareholders

2

Residency requirements for shareholders

No

Corporate shareholder permitted

Yes

Meetings/frequency/location

Annually at the place of company registration / place of actual activity

Disclosure to local agent

Yes

Disclosure to public

Yes

Beneficiary info disclosure to

Yes

Shares and share capital

Minimum authorized share capital

10 000 000 000 IDR / 700 000 USD

Minimum issued share capital

10 000 000 000 IDR / 700 000 USD

Minimum paid share capital

10 000 000 000 IDR / 700 000 USD

Authorized capital payment deadlines

Within one year from the date of obtaining a licence to operate

Issued capital payment deadlines

Within one year from the date of obtaining a licence to operate

Standard currency

IDR

Standard authorized share capital

10 000 000 000 IDR / 700 000 USD

Standard par value of shares

1 000 000 IDR

Shares with no par value permitted

No

Bearer shares permitted

No

Taxes

Personal tax

5-35%

Сorporate tax

22%

Corporate tax (in detail)

The corporate tax rate is 0.5% until the turnover exceeds IDR 4 800 000 000 (~ USD 330 000). Thereafter, the standard corporate tax rate of 22% applies. Resident corporate taxpayers with gross revenue up to IDR 50 000 000 000 000 receive a 50% reduction in the corporate tax rate levied on taxable income for gross revenue up to IDR 4 800 000 000 (~ USD 330 000)

Capital gains tax

5 - 35% / 22%

Capital gains tax. Details

Standard personal income tax and income tax rates apply to most capital gains

VAT

11%

VAT. Details

The obligation to register for VAT arises once the turnover exceeds IDR 4 800 000 000 (~ USD 330 000)

Withholding tax

20% (dividend), 20% (interest), 20% (royalty)

Other taxes

Motor vehicle tax; vehicle title transfer fee; motor fuel tax; heavy equipment tax; surface water tax; cigarette tax; advertising tax; non-metallic and mining mineral tax; groundwater tax; tax on certain goods and services

Exchange control

Yes

Government fee

—

Stamp duty

Some documents are subject to a stamp duty of IDR 10 000

Accounts

Requirement to prepare accounts

Yes

Requirement to file accounts

Yes

Publicly accessible accounts

No

Requirement to file Annual Return

Yes

Publicly accessible Annual Return

No

Audit required

Yes

General information shortly

Location

The islands of the Malay Archipelago and the western part of the island of New Guinea

Total area

1 919 440 sq. km.

Population

280 488 501 (2022)

Capital

Jakarta

National currency

Indonesian Rupiah

Conditional reduction of currency

IDR

Against USD

0,000062 (2024)

Climate, average max and min t°

Equatorial, humid, subequatorial in some regions

Time difference from Moscow

- 4 hours

Dialing code

+62

State language

Indonesian

Ethnic groups

The most numerous are Javanese (over 40%), Sundanese (~15%), Madurians (~4%), Minangkabau (~3%), Bugis (~2.5%)

Literacy rate

95,4% (2019)

History

—

Credit rating

BBB-

Government type

Unitary state, presidential republic

Executive branch

The head of state is the president, who forms and heads the government

Legislative branch

The highest legislative body, the People's Consultative Congress, consists of two chambers: the Council of People's Representatives and the Council of Regional Representatives

Judicial branch

The highest authority is the Supreme Court, which administers the criminal, civil, administrative, commercial, and tax justice systems. The Supreme Court is also the highest appellate court

Unemployment

5,83% (2021)

GDP per capita rank

110 (2021)

Corruption perceptions index rank

38 (2021)

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Banks of Indonesia

Bank Mandiri

2 500

N/A

Permata Bank

2 500

N/A