Who would miss the chance to expand businesses in Indonesia? The country is blessed with lush forests, inviting tropical beaches, vast islands, delicious food, and low living costs. These are on top of the fact that Indonesia is becoming one of the leading countries with impressive market growth and investment opportunities.
However, expanding a business often requires hard work and commitment, along with many obstacles. Although you can enjoy many benefits by expanding to Indonesia, before going forward, you should understand what the country offers.
Below are some of the promising reasons why you should expand your business in Indonesia.
With the world’s 4th largest population, Indonesia increases its average population growth by almost 3 million people yearly. By 2020, the country expects to have a population of 272 million people. This substantial population provides both residents and foreigners with many business and investment opportunities.
Another inviting reason why you should expand your business to Indonesia is its friendly tax rates. Indonesia has lowered its corporate income tax (CIT) rate to 22 % from 25 % for the 2020-2021 fiscal year and can reduce it further to 20 % in 2022.
Also, taxes for public companies offering a minimum share capital requirement of 40% of the total share capital are reduced to 5 % from the regular rate. Companies with an annual turnover of 50 billion rupiahs (US$3.5 million) qualify for a 50% tax reduction from the standard rate. At the same time, businesses with a gross turnover of not more than 4.8 billion rupiahs (US$341,000) are subject to a maximum turnover tax of 0.5 %. The government provides many other tax incentives to encourage higher foreign investments over the years.
Ease Of Doing Business In Indonesia
According to the World Bank Group Ease of Doing Business index, Indonesia ranks 73th globally for doing business, ahead of the Philippines (rank 124), behind China (46) and Malaysia. Ranking 128th in 2013 and 91st in 2017 for ease of doing business, Indonesia is on an upward trend. Also, processes for company formation Indonesia are made easy by the government to further attract investors. This optimistic trend shows that the government’s changes to local regulations are adequate for the commercial environment.
There are more than 700 languages in Indonesia. While the majority are speaking Indonesian, the English language is widely used in the business community. It is easy to connect and do business without learning the local languages or investing in a translator for entrepreneurs working in major cities such as Jakarta.
Ready To Expand Your Business In Indonesia?
Indonesia is the best pick for your expansion. With a significant percentage of working-age people and an array of opportunities and natural resources to invest in, you can never go wrong in choosing the country for your next business venture.
Partner with 3E Accounting, a company formation Indonesia specialist. We offer a variety of market entry and back-office support services. Our solutions are designed to help you grow into a new market and lead your business to higher levels. Contact us today to find out more about our Indonesian-based business specialists.