GSL / Offshore and International Law. Offshore companies registration. / Offshore zones / South & Southeast Asia / Indonesia / Legislation of Indonesia

Legislation of Indonesia

Service packages Legislation Tax System Audit Services

List of laws and regulations

Act name
Scope of law
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 Justice and Human Right
http://www.kemenkumham.go.id/
General Elections Commission
http://www.kpu.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
Offers
Setting Up a Company (PT PMA) in Indonesia. Service offer

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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
Progressive income 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%
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
Domestic settlements are allowed only in IDRs
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
1б.919.440 sq. km.
Population
280.488.501 (2022)
Capital
Jakarta
National currency
Indonesian Rupiah
Conditional reduction of currency
IDR
Against USD
0,000066
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
The cost of opening an account, $
Global rating
Countrywide rating
GSL rating
Bank Mandiri
2 500
N/A
N/A
Permata Bank
2 500
N/A
N/A
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