Indonesia
Southeast Asia's largest economy — and its largest market with no agreement in place
Indonesia has more than 280 million people and a growing middle class, but it is also the most complicated entry in the region: no agreement with the Union (a CEPA is under negotiation), its own local-content requirements, and halal certification that keeps extending to further categories of goods.
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Setting up a company
Setting up a company and tax are the part of the profile you cannot assemble elsewhere in an afternoon. The rest of the page is open.
- ·Legal forms
- ·Minimum capital
- ·How long registration takes
- ·Notary and legalisation
- ·Director and residence
- ·What to watch for
Taxes
Setting up a company and tax are the part of the profile you cannot assemble elsewhere in an afternoon. The rest of the page is open.
- ·Corporate income tax
- ·VAT
- ·Withholding tax — dividends
- ·Payroll contributions
What it makes and needs
Palm oil, coal, nickel and processed metals, rubber, textiles, footwear, electronics and coffee.
Machinery and industrial equipment, chemicals, pharmaceuticals, dairy, grain and technology for processing raw materials — Indonesia is pushing hard to have its own commodities processed at home.
Importing into their market
Halal certification is mandatory for food and drink and is being extended to cosmetics, medicines and further categories; it is issued by BPJPH. On top of that, BPOM registration for food, cosmetics and medicines, and mandatory Indonesian labelling in many categories. This is the single most common reason a European consignment gets stuck at the border.
The importer must hold an importer identification number (API) tied to the NIB; without it the consignment is not released. The declaration needs an invoice, packing list, transport document and, depending on the goods, an import approval or an SNI certificate.
Indonesian-language labelling is mandatory for consumer goods; food, cosmetics and medicines need BPOM registration before import and a halal certificate from the manufacturer through BPJPH. Registration takes months.
Practical matters
Indonesian is the official and negotiating language; a contract with an Indonesian party must have an Indonesian version or it risks being void. English is common in Jakarta and in international companies.
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