Indonesia's Economic and Investment Climate
Indonesia is the fourth most populous in the world with 270 million population. It is the world's 10th largest economy in terms of purchasing power parity, and a member of the G20 with a vast natural resources. Indonesia was the second-fastest growing economy in G20 from 2012 until the COVID-19 outbreak hit in 2020. It is ranked third after China and South Korea in terms of economic growth among G20 economies according to Bloomberg data collected in September 2020.
Indonesia's economy was disrupted in 2020 with a negative growth of 2.1% from 2019. The World Bank forecasted that the Indonesian economy would rebound by 4.4% in 2021.
Exporters can export have to pay higher Products which labeled "Made in China" and
Indonesia's Taxes and
SEZ Incentives
The principal taxes applicable to Indonesian Permanent Establishment of foreign companies doing business in Indonesia consist of Corporate Income Tax, branch profits tax, withholding tax ("WHT"), value-added tax ("VAT") and luxury-goods sales tax ("LST"), Import duty will be charged on the customs value of imported goods., and various other indirect levies including land and building tax, the regional taxes and stamp duty.
Taxpayers conducting business in Special Economic Zones (Kawasan Ekononi Khusus or KEKs) may enjoy tax facilities. The business should cover the main activities determined for each KEK. The designation of an area as a KEK is set out in a specific GR.
Doing Business in Indonesia
Indonesia is the fourth most populous in the world with 270 million population. It is the world's 10th largest economy in terms of purchasing power parity, and a member of the G20 with a vast natural resources. Indonesia was the second-fastest growing economy in G20 from 2012 until the COVID-19 outbreak hit in 2020. It is ranked third after China and South Korea in terms of economic growth among G20 economies according to Bloomberg data collected in September 2020.
Indonesia's economy was disrupted in 2020 with a negative growth of 2.1% from 2019. The World Bank forecasted that the Indonesian economy would rebound by 4.4% in 2021.
Special Economic Zones
Until July 2021, there are 19 regions that are registered as SEZs in Indonesia.
Lion is working closely with one industrial park and three SEZs, named as below,, and assists client to
Cikarang Industrial Park
Kendal SEZ
Tanjung Lesung SEZ
Morotai SEZ
How LION Can Help
Dr. Hon Sir Benson Chang KCMA is, Group Managing Director, from second-generation Indonesian Chinese family, living in Hong Kong and doing consulting business in China. He familiars with the cultures and behaviour difference among these three jurisdictions. Because of his family background and experience, LION helps clients to enter into Indonesia market and assist them to solve corporate multicultural and compliance issues.
Dr. Hon Sir Benson Chang was elected as Entrepreneur of the Month by the Indonesia Chamber of Commerce in Hong Kong. Click here to read the article.
LION is working closely together with the Consulate General of the Republic of Indonesia in Hong Kong and China to assist investors to expand their businesses in Indonesia.
Lion provides a comprehensive Feasibility Study, upon investor's request with a fee charge, for investor to have full picture with our analysis and recommendation of the potential plant location.
Lion assists not only just register a FDI entity (PT PMA), but also assist investors to get the relevant permits with BKPM and KLIK, plant building, manpower recruitment, liaise with universities and hospitals for certain industries, liaise with government departments, and SEZ management offices, logistic arrangement, then accounting and annual tax reporting. Lion also assists investors to enjoy the tax holidays and/or allowances.
Lion offers cross-border tax structure advisory, transfer pricing, BEPS, double tax arrangement advisory and application for tax resident certificate for DTA purposes.
Lion can also assist you to grant the BUD fund from Hong Kong Government on expanding your Brand, Upgrade and Develop your business in Indonesia.
