Indonesia states in 2022

INDONESIA PROVINCES JAKARTA RIAU EAST KALIMANTAN BALI RIAU ISLANDS WEST PAPUA
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
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%

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