Indonesia states

Indonesia states

INDONESIA PROVINCESJAKARTARIAUEAST KALIMANTANBALIRIAU ISLANDSWEST PAPUA
Summary
Preferred city for incorporation of the company?JakartaPekanbaruSamarindaDenpasarTanjung PinangManokwari
Business output market size? (in US$ billions)149574414165
Market size relative to the economy?17%7%5%2%2%0.50%
Local purchasing power (GRP per capita)?US$14,730US$9,250US$13,100US$3,200US$8,000US$5,800
Total population? (in millions)106.33.441.90.8
Most popular business sector?ServicesAgriculture & ManufacturingEnergy & ManufacturingTourism & AgricultureManufacturingMining
Average labour monthly salary?US$500US$300US$300US$250US$350US$300
Specific attractive Government incentives available?YesYesYesYesYesYes
Time zone? (ahead of GMT)+7hours+7hours+8hours+8hours+7hours+9hours
How many tax exempt free zones available?NoneNoneNoneNone1 (Batam)None
Literacy rate? (% of population)99%98%97%93%98%93%
Hub for the headquarters of Global Firms?YesNoNoNoNoNo
Airport with direct flight to Europe, Asia and America?YesNoNoNoNoNo
Logistical considerations
Attractive State for a manufacturing business?YesNoNoYesYesNo
Attractive State for an e-business?YesNoNoYesYesNo
Attractive State for an export-oriented service business?YesNoNoYesYesNo
CBD monthly office rental per sq m?US$30US$20US$20US$25US$20US$15
Average monthly warehouse rental per sq m?US$10US$5US$5US$7US$5US$5
Average monthly electricity prices? (per Kwh)US$0.14US$0.20US$0.19US$0.84US$0.31US$0.23
Frequency of power outages (hours per year)101518202024
Proximity of sea port to the main city?16km168km3.9km6km4km2km
Proximity of airport in kilometres to the main city?28km170km2.4km12km9.4km5.5km
Proximity of rail in kilometres to the main city?20km150km0km5km10kmNA
Number of international tourists? (in million)1.30.20.42.310.4
Average annual inflation rate (%, yoy)8.368.368.368.368.368.36
Average unemployment rate?5.70%5.90%8.80%2.20%9%5.70%
Quality of internet broadband and Wi-Fi?Very GoodPoorPoorVery GoodPoorPoor
Corporate Banking and Finance considerations
Is the main city a financial services hub?YesNoNoNoNoNo
How many global banks are based in the province?1012310
How many Indonesian banks with local branches?15129131110
Recommended Bank for corporate banking?Standard CharteredHSBCCommonwealthCitibankUOBCIMB
Client to visit bank for account opening?NoNoNoNoNoNo
Quality of bank customer services?Very GoodVery GoodGoodVery GoodGoodGood
Quality of online banking services?Very GoodExcellentGoodExcellentGoodGood
Does the Province have a reputable financial district?YesNoNoNoNoNo
Does the Province have a local Stock Exchange?YesNoNoNoNoNo
Are there Private Equity Funds/VCs in the State?YesYesYesYesYesYes
Employment considerations
Minimum monthly wage?US$240US$160US$170US$140US$170US$170
Average pension and insurance benefits (% of salary)?4%4%4%4%4%4%
Average skilled labour monthly salary?US$600US$450US$450US$400US$500US$500
Average unskilled labour monthly salary?US$300US$200US$200US$170US$200US$200
Mandatory labour unions?NoNoNoNoNoNo
Minimum notice to dismiss employees?4 weeks4 weeks4 weeks4 weeks4 weeks4 weeks
Minimum redundancy indemnity?1 month1 month1 month1 month1 month1 month
Is there a large expatriate community in the main city?YesNoNoYesYesYes
International schools for children of expatriate employees?YesYesYesYesYesYes
Golf courses near the main city of the State?YesYesYesYesYesYes
General availability of bars and restaurants?YesYesYesYesYesYes
Will I find European F&B products in the supermarkets?YesYesYesYesYesNot easily
Mercer Survey Ranking for global cities?172NoNoNoNoNo
Is the main city of the State safe for expatriates?YesYesYesYesYesYes
Is it easy to convert my driving permit?YesYesYesYesYesYes
Literacy rate? (% of population)99%98%97%93%98%93%
Computer literacy rate? (% of population)75%55%50%65%55%45%
Accounting and tax considerations
Monthly and annual tax filing required?YesYesYesYesYesYes
Government incentives for manufacturing?YesYesYesYesYesYes
Tax holidays available?YesYesYesYesYesYes
Monthly state tax filing if registered for payroll tax?YesYesYesYesYesYes
Tax incentives for manufacturing start-ups?YesYesYesYesYesYes
Tax incentives for construction start-ups?YesYesYesYesYesYes
Tax incentives for IT software start-ups?YesYesYesYesYesYes

Customs duty on export products?On specific products
Average customs duty for imported products?4.4%
Local corporation tax? (%)25%
Local LST/VAT? (%)10%
Payroll tax rates? (%)13%

Contact us

For additional information on our business 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