Summary |
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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 |
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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 |
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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 |
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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 |
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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 |