Legal system: based on civil law, modernized in line with international business standards. The main regulators include the Ministry of Law and Human Rights (MOLHR), the Ministry of Investment / BKPM, and the Tax Authority.
Currency: Indonesian Rupiah (IDR), freely usable within the framework of domestic foreign exchange regulations.
Taxation:- Corporate income tax: 22%, with the possibility of reduced effective tax rates for companies with annual turnover of up to IDR 50 billion;
- preferential regimes and tax holidays are available for priority sectors and large investment projects;
- VAT: an effective rate of 11% applies to most goods and services; an increased rate of 12% applies to certain luxury items.
Reporting: mandatory annual financial and tax reporting, bookkeeping in accordance with Indonesian accounting standards, and the obligation for PT PMA companies to submit investment activity reports (LKPM).
Confidentiality: information on directors and shareholders is recorded in official registers; however, access is typically granted through formal requests to the registrar. The use of nominee services is permitted, subject to KYC/AML requirements.
Sector focus: Indonesia is particularly attractive for companies operating in e-commerce, manufacturing, logistics, energy, and digital services, as well as for international holding structures targeting the Southeast Asian market.