Indonesia Market Entry Strategy

How to set up Business in the United Kingdom?

The UK continues to be one of the most attractive locations for organizations who are looking to expand their horizons internationally due to its strong and welcoming business environment to foreign investors. Relatively low corporate tax rates and flexible employment laws make UK a highly competitive market for business. To establish a business in the United Kingdom one has to first register as a sole trader, limited company or partnership. The on-line portal allows one to register at ease or even make changes if required through a single form. To register an individuals requires the company name, business address, director information, shareholders and documentations:

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  Choose the Name as per guidelines & obtain ratification of Deed of Establishment

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  Tax Registration - Get a Tax Identification Number (NPWP)

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  Registration in the OSS to obtain company’s Identification Number to Operate (NIB)

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  Operational / Commercial License

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Being referred by a local company could be a strong entry point for foreign entrepreneurs who are looking to expand into Indonesia. Companies who are interested in setting up a legal entity in Indonesia should probably first refer to the ‘Negative Investment List’ to learn about businesses that are closed or conditionally open for investment. To support potential foreign investors in establishing their business in Indonesia, the government has assigned BKPM (Indonesia Investment Coordinating Board) as the one-stop service provider for business license processing, through its online licensing system the Online Single Submission System (OSS).

Here are a few tips on planning, legal issues, hiring, immigration, and taxes & an overview of Indonesia market that would help you to build a expansion strategy for your business.

Top 3 Sectors for Investment in Indonesia

Consumer-related market opportunities continue to lead growth in Indonesia. In the recent years’ health, retail, education, financial and telecom services have boomed. The aviation industry in Indonesia is growing at a rate of 20 % yearly. Aircraft replacement parts and services, air traffic control, airport logistics services and ground support equipment is a valuable and significant market. Over all there is need for development of Infrastructure. Here are three major sectors that are showing huge growth potential:

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In order to successfully establish a business in Indonesia, it is important to build a strong network with Indonesian business and government circles. Foreign entrepreneurs should understand the importance of these networks and make efforts to develop them as well as to maintain them. Though it sounds intimidating but it is not difficult to establish these networks as foreign businessmen are happily welcomed by Indonesians. It is also highly recommended to acquaint yourself with cultural values beforehand in order to know how to socialize with Indonesian business partners and Indonesian employees as well as to grasp Indonesia's business culture. You can find a detailed report covering different facets and market intelligence related to Austria here.

Visa and Immigration

Business Visa is a short term visa which enables foreigners to come to Indonesia for business reasons that permits holders to participate training, conferences or workshops , business meeting and negotiate conditions of potential business deals. Single-entry and multiple-entry business visa is available. Single Entry visa has a validity for 60 days and Multiple entry does not limit the number of stays in the country per year. Citizens from Cameroon, Afghanistan, Israel, Guinea, Iraq, Indonesia, Liberia, Somali and North Korea may not be eligible for Indonesian business visa application.

 

 

Investor KITAS is issued to foreign nationals who are investing in PT PMA company in Indonesia and are required to work for that company. There are 2 types of Investor KITAS visa - Index 313 which is valid for 1 year and Index 314 with a validity of 2 year

The KITAP Visa is the most comprehensive, stress-free and cost effective visa. It is a Permanent Resident permit visa. It is also one of the hardest visa to attain. The visa is applicable for business reason can be applied by foreign investors, directors or commissioners in an Indonesian Company (PT PMA).

 

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