Summary | | | | | | |
Preferred city for incorporation of the company? | Jakarta | Pekanbaru | Samarinda | Denpasar | Tanjung Pinang | Manokwari |
Business output market size? (in US$ billions) | 149 | 57 | 44 | 14 | 16 | 5 |
Market size relative to the economy? | 17% | 7% | 5% | 2% | 2% | 0.50% |
Local purchasing power (GRP per capita)? | US$14,730 | US$9,250 | US$13,100 | US$3,200 | US$8,000 | US$5,800 |
Total population? (in millions) | 10 | 6.3 | 3.4 | 4 | 1.9 | 0.8 |
Most popular business sector? | Services | Agriculture & Manufacturing | Energy & Manufacturing | Tourism & Agriculture | Manufacturing | Mining |
Average labour monthly salary? | US$500 | US$300 | US$300 | US$250 | US$350 | US$300 |
Specific attractive Government incentives available? | Yes | Yes | Yes | Yes | Yes | Yes |
Time zone? (ahead of GMT) | +7hours | +7hours | +8hours | +8hours | +7hours | +9hours |
How many tax exempt free zones available? | None | None | None | None | 1 (Batam) | None |
Literacy rate? (% of population) | 99% | 98% | 97% | 93% | 98% | 93% |
Hub for the headquarters of Global Firms? | Yes | No | No | No | No | No |
Airport with direct flight to Europe, Asia and America? | Yes | No | No | No | No | No |
Logistical considerations | | | | | | |
Attractive State for a manufacturing business? | Yes | No | No | Yes | Yes | No |
Attractive State for an e-business? | Yes | No | No | Yes | Yes | No |
Attractive State for an export-oriented service business? | Yes | No | No | Yes | Yes | No |
CBD monthly office rental per sq m? | US$30 | US$20 | US$20 | US$25 | US$20 | US$15 |
Average monthly warehouse rental per sq m? | US$10 | US$5 | US$5 | US$7 | US$5 | US$5 |
Average monthly electricity prices? (per Kwh) | US$0.14 | US$0.20 | US$0.19 | US$0.84 | US$0.31 | US$0.23 |
Frequency of power outages (hours per year) | 10 | 15 | 18 | 20 | 20 | 24 |
Proximity of sea port to the main city? | 16km | 168km | 3.9km | 6km | 4km | 2km |
Proximity of airport in kilometres to the main city? | 28km | 170km | 2.4km | 12km | 9.4km | 5.5km |
Proximity of rail in kilometres to the main city? | 20km | 150km | 0km | 5km | 10km | NA |
Number of international tourists? (in million) | 1.3 | 0.2 | 0.4 | 2.3 | 1 | 0.4 |
Average annual inflation rate (%, yoy) | 8.36 | 8.36 | 8.36 | 8.36 | 8.36 | 8.36 |
Average unemployment rate? | 5.70% | 5.90% | 8.80% | 2.20% | 9% | 5.70% |
Quality of internet broadband and Wi-Fi? | Very Good | Poor | Poor | Very Good | Poor | Poor |
Corporate Banking and Finance considerations | | | | | | |
Is the main city a financial services hub? | Yes | No | No | No | No | No |
How many global banks are based in the province? | 10 | 1 | 2 | 3 | 1 | 0 |
How many Indonesian banks with local branches? | 15 | 12 | 9 | 13 | 11 | 10 |
Recommended Bank for corporate banking? | Standard Chartered | HSBC | Commonwealth | Citibank | UOB | CIMB |
Client to visit bank for account opening? | No | No | No | No | No | No |
Quality of bank customer services? | Very Good | Very Good | Good | Very Good | Good | Good |
Quality of online banking services? | Very Good | Excellent | Good | Excellent | Good | Good |
Does the Province have a reputable financial district? | Yes | No | No | No | No | No |
Does the Province have a local Stock Exchange? | Yes | No | No | No | No | No |
Are there Private Equity Funds/VCs in the State? | Yes | Yes | Yes | Yes | Yes | Yes |
Employment considerations | | | | | | |
Minimum monthly wage? | US$240 | US$160 | US$170 | US$140 | US$170 | US$170 |
Average pension and insurance benefits (% of salary)? | 4% | 4% | 4% | 4% | 4% | 4% |
Average skilled labour monthly salary? | US$600 | US$450 | US$450 | US$400 | US$500 | US$500 |
Average unskilled labour monthly salary? | US$300 | US$200 | US$200 | US$170 | US$200 | US$200 |
Mandatory labour unions? | No | No | No | No | No | No |
Minimum notice to dismiss employees? | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
Minimum redundancy indemnity? | 1 month | 1 month | 1 month | 1 month | 1 month | 1 month |
Is there a large expatriate community in the main city? | Yes | No | No | Yes | Yes | Yes |
International schools for children of expatriate employees? | Yes | Yes | Yes | Yes | Yes | Yes |
Golf courses near the main city of the State? | Yes | Yes | Yes | Yes | Yes | Yes |
General availability of bars and restaurants? | Yes | Yes | Yes | Yes | Yes | Yes |
Will I find European F&B products in the supermarkets? | Yes | Yes | Yes | Yes | Yes | Not easily |
Mercer Survey Ranking for global cities? | 172 | No | No | No | No | No |
Is the main city of the State safe for expatriates? | Yes | Yes | Yes | Yes | Yes | Yes |
Is it easy to convert my driving permit? | Yes | Yes | Yes | Yes | Yes | Yes |
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? | Yes | Yes | Yes | Yes | Yes | Yes |
Government incentives for manufacturing? | Yes | Yes | Yes | Yes | Yes | Yes |
Tax holidays available? | Yes | Yes | Yes | Yes | Yes | Yes |
Monthly state tax filing if registered for payroll tax? | Yes | Yes | Yes | Yes | Yes | Yes |
Tax incentives for manufacturing start-ups? | Yes | Yes | Yes | Yes | Yes | Yes |
Tax incentives for construction start-ups? | Yes | Yes | Yes | Yes | Yes | Yes |
Tax incentives for IT software start-ups? | Yes | Yes | Yes | Yes | Yes | Yes |