Can You Do Business in Indonesia

Even if international investors have shown some interest in Indonesia over the last several years, it is still not the APAC region's most business-friendly country. According to the nation's position in the World Bank's Doing Company report, it might be difficult to start a business here. There are a lot of barriers and bureaucracy in the way of doing business here. Additionally, you must contend with a drastically altered work environment and overall business climate. Let's look at a few obstacles to doing business in Indonesia and how to overcome them.

A Business Venture

Several factors led to Indonesia's rating of 166th on the World Bank's rankings. One of the primary ones is the many hoops you must jump through before you can legally run a company in the nation. In other OECD nations, there are typically 5 steps required to start a firm. In Indonesia, the number is nine.

This is why you need someone who is well-versed in the local system to establish or maintain a company in Indonesia, particularly when it comes to employment. If you ever want to open a business in Indonesia, you should start searching for a PEO immediately away.

Building Permits

Good luck if you were considering developing a facility for your company in Indonesia or entering the development industry. First of all, foreigners have little access to development, and obtaining construction licenses in the nation takes a long time. In reality, the process of obtaining a building permit might take more than 150 days and include a total of 13 steps.

Simple Amenities

The price of installing certain utilities, like power, is another issue that will surprise a lot of investors. Electricity installation costs are much higher than in other OECD nations. Prior to receiving a Certificate of Operation Worthiness from the National Electrical Contractors Association, you must first get a Guaranteed Electrical Installation Certificate. The additional expenses for physical work are not even included in this.

Advantages of doing business in the nation

However, there are a few advantages to doing business here. First of all, it is well situated geographically in the center of the APAC, giving it easy access to the Chinese, Southeast Asian, South Asian, and Australian markets. If you were planning to partner with a local, it is also one of the countries with the highest investment protections in the world.

Although registration of company in Indonesia is not for the timid, it nonetheless presents a wealth of chances for astute investors with a strategy. Talk to someone who has experience first, and then take the necessary precautions to be ready for the realities of conducting business in the nation.