Indonesia industrial free trade zones

Indonesia industrial free zones

    list of free zone areas in Indonesia

  1. Indonesia currently boasts only one free trade zone (FTZ) which is Batam Free Trade Zone;
  2. Unfortunately, companies registered within Batam FTZ still suffer a corporate tax rate of 30%;
  3. However, Batam FTZ companies enjoy exemption from import and export duty on machine, spare parts, and raw materials for production purposes. Imported goods are also exempted from VAT;
  4. Batam FTZ offers double taxation avoidance for 65 countries including Australia, USA, United Kingdom, Germany, Vietnam, Philippines, Mauritius, Singapore, and Malaysia;
  5. Batam FTZ is located within the Indonesia – MalaysiaSingapore growth triangle and can be accessed by all modes of transportation including air, land, and sea; consequently, this location enables more efficient logistics for investors;
  6. Companies operating in Batam FTZ enjoy an ample supply of cheap labor and land compared to its neighbors. The average monthly labor cost is US$100-145 while average land rent is around US$2 per square meter per month;
  7. These FTZs invites multinationals from the business sectors of electronics, manufacturing, shipping industry, and oil and gas production.
Summary at a glanceBatam Free Trade Zone
Average annual Industrial space rent per 1000 sqmUS$24,400
How long to set the company up?3 months
How long to open company bank account?3 – 4 weeks
Allowed to sign sales contracts with Indonesian Clients?Yes
Allowed to invoice Indonesian Clients?Yes
Corporate tax payable in IndonesiaYes
Corporate bank accountYes
Physical office space requiredYes
Industrial space availabilityMany
Allowed to import raw materials?Yes
Allowed to export goods?Yes
Wholly foreign ownedYes
Can the entity hire expatriate staff in Indonesia?Yes
Do you visit Indonesia for company incorporation?No
Minimum number of directors1
Minimum number of shareholders2
Tax registration certificate requiredYes
Individual shareholders allowedNo
Corporate shareholders allowedYes
Corporate director(s) allowedYes
LLC company allowedYes
Can apply for immigration visasYes
Annual audited financial statementsYes

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For additional information on our free zone company registration services in Indonesia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi