IndonesiaBest Business Opportunities in Indonesia and Types of Business in 2024

January 4, 2024by Tetra Consultants0
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  • Business opportunities in Indonesia abound for ventures seeking expansion and growth in Asia. With a strategic location at the heart of Southeast Asia and an extensive network of free trade agreements with major economies, it offers unparalleled access to a vast consumer base. 
  • As the sixteenth largest economy globally, Indonesia presents a dynamic landscape for entrepreneurs looking to establish a foothold in this thriving market. The country’s ambitious infrastructure development plans open a plethora of contract opportunities across various sectors. 
  • Tetra Consultants is your trusted partner in unlocking the full potential of Indonesia’s thriving market. Our team can assist you in seamlessly to register company in Indonesia, ensuring that you can swiftly embark on your business journey. With our expert guidance, you can navigate essential aspects like legal drafting and more, enhancing the efficiency and effectiveness of your operations. Join us in making the most of the abundant business opportunities in Indonesia. 

Best business opportunities in Indonesia 

Construction 

  • The construction business is one of the compelling business opportunities in Indonesia because Indonesia is embarking on an ambitious infrastructure development plan, investing heavily in roads, bridges, airports, and other essential facilities. This surge in construction projects creates a significant demand for skilled contractors and builders. 
  • Moreover, with a growing population and increasing urbanization, there is a pressing need for residential, commercial, and industrial spaces. 

E-commerce platform 

  • Indonesia boasts a massive population of over 270 million people, making it one of the largest consumer markets in Southeast Asia. With a burgeoning middle class and increasing internet penetration, the potential customer base for e-commerce businesses is immense. 

Mobile app development 

  • Indonesia is experiencing a rapid digital transformation, with a significant portion of the population using smartphones and engaging with mobile apps this creates a mobile app to be one of the most appealing business opportunities in Indonesia. 
  • Operating such businesses requires licenses which you can easily obtain by engaging with Tetra Consultants. Our experts will guide you about the requirements and permits and will also obtain them on your behalf.  

Organic farming 

  • There is a rising awareness and demand for organic and sustainable products in Indonesia. Consumers are increasingly seeking healthier and environmentally friendly alternatives, creating a lucrative market for organic produce. 

Types of business in Indonesia 

Limited Liability Company (Perseroan Terbatas or PT) 

  • This types of business in Indonesia includes limited liability of shareholders and they generally protect the shareholders in the event of the company’s financial difficulties or insolvency. 
  • Here are some of the statutory requirements for the LLC 
  • Deed of establishment containing the articles of association and its approval from the Ministry of Law and Human Rights (MOLHR). 
  • Shareholders’ resolutions containing any amendments to the articles of association and their receipts of notice or approvals from the MOLHR. 
  • General meeting of shareholders must be convened annually (within 6 months of the end of the financial year). 
  • A minimum of 1 director. 
  • A minimum of 2 shareholders. 
  • A minimum of 1 commissioner. 
  • There is no residency requirement for directors, shareholders, and commissioners. 
  • With these many statutory compliances, there may be additional compliances which depend on the types of business activity you are performing. Tetra Consultants can guide you about the various requirements for your company and can also aid you with drafting articles of association.  

Foreign Investment Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA) 

  • A Foreign Investment Company (PMA – Penanaman Modal Asing) in Indonesia refers to a business entity that is established with foreign capital investment. It is governed by the Indonesian Investment Coordinating Board (BKPM) and is a popular choice for foreign investors looking to operate in Indonesia. 
  • There are various statutory requirements for the business which are similar to that of the LLC. The difference is in the capital requirement of the company which is at least 10,00,00,00,000 rupiah (US$696,000).  
  • Moreover, this types of business in Indonesia requires shareholders to meet the requirements of the Foreign Capital Investment Law. Along with that, the director and commissioner must obtain a work permit and a stay permit (KITAS) to work in Indonesia. 
  • Additionally, these corporates are subject to various accounting and tax regulations which you can easily fulfill by starting the engagement with Tetra Consultants. 

Foundation (Yayasan) 

  • In Indonesia, a foundation is a legal entity established for specific charitable, educational, social, religious, or humanitarian purposes. This type of entity can be established by both local and foreigners. 
  • Even after being a foundation this business entity is required to adhere to the specific restrictions and compliances imposed by the authorities. Tetra Consultants can help you in adhering to those compliances and requirements within the stipulated time. 

Cooperative (Koperasi) 

  • Cooperatives in Indonesia are a unique business structure that is established to promote the welfare of members and society, while also helping to build the national economy. There are four types of cooperatives in Indonesia: production cooperatives, credit cooperatives, consumer cooperatives, and service cooperatives. 

State-Owned Enterprise (Badan Usaha Milik Negara or BUMN) 

  • State-owned enterprises (SOEs) in Indonesia are business entities that are owned and controlled by the Indonesian government. These companies play a significant role in the country’s economy and are responsible for managing vital interests in people’s lives, such as income and state money. 
  • State-owned enterprises are 100% owned by the Indonesian government, and there can be no foreign shareholders.  

Firm (Firma) 

  • Firma is a type of cooperative business entity formed by two or more Indonesian citizens in one agreement to make a collective name to deal with third parties in making a profit. 
  • There is no separation between personal wealth and company assets implying unlimited liability on the firma partners. 
  • If you are operating any type of business in Indonesia, there will always be a requirement for a bank account for the financial management purpose of the company. With the help of Tetra Consultants, you can enjoy the corporate bank account opening process seamlessly which will be completed under 4 weeks after the incorporation. 

Conclusion 

  • Indonesia stands as an exceptional destination for businesses poised for expansion in the dynamic Asian market. With a robust economy, strategic trade agreements, and a rapidly growing middle class, the potential for success is immense. Tetra Consultants, with its comprehensive suite of business services, is here to pave the way for your success. 
  • Contact us to find out more about the business opportunities in Indonesia and various types of business in Indonesia, and our dedicated and experienced team will respond within the next 24 hours. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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