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3 Considerations Before Setting Up A Business in Indonesia

February 07, 2022

Are you currently searching for a rental warehouse to expand your business in Indonesia? Well, Indonesia certainly has a lot to offer in terms of business. But, first, let’s take a look at what you need to consider before setting up a business in Indonesia. 

Why Indonesia?


In 2021, several worldwide investors are constantly pursuing investments in Indonesia. Being the biggest economy in ASEAN, Indonesia is also the world's tenth-largest economy in market exchange rates.

“Indonesia's economy grew by 5.2 percent in 2019. Furthermore, annual core inflation has been below 3.9 percent for four years and will remain so through 2024.”

Moreover, the thriving economy that renders Indonesia a financial haven results from other significant aspects such as dynamic tourism, bountiful agricultural goods for export, and a thriving industrial sector. 

Things You Need to Consider



If you believe that now is the best moment to start a company in Indonesia, below are three crucial things to consider.

  • Setting Up Your Company 

The first step in starting a company in Indonesia is deciding on a legal entity. Indonesian Limited Liability Companies (PT), Representative Offices, and Public Companies are the most popular forms of legal entities.

After you've decided on your legal organization, you need to decide about the location. The company development requires a rental warehouse in Indonesia or control of everything digitally through a computing environment.

However, all businesses in Indonesia must adhere to Indonesian law, regardless of their nature, category, or location.

  • Worker Regulation

If you ever need to recruit staff, you must follow all Indonesian employment laws. Moreover, Indonesia does have its system of job and labour laws.

Remember never to apply your nation's employment legislation in an overseas country like Indonesia. To successfully expand globally, you must understand your duties as an employer and your employees' rights.

Furthermore, knowing local employment laws might safeguard your organization from legal issues. Non-compliance carries hefty fines, reputational harm, and jail.

However, employment restrictions vary for local and international workers. Thus, you might need to address all topics like salaries and perks. Moreover, make sure you pay your workers and file your taxes on time.

Remember that you may only hire foreigners on a PKWT for a sufficient period. Furthermore, the foreigner must also have a work visa to comply with Indonesian law.

  • License 

To start a company in Indonesia, you must first get several mandatory business licenses. Moreover, you won't be able to lawfully conduct your company in the nation until you have them.

Depending on the nature of your company and operations, you might have to apply for special extra permissions.

A standard business license is the most frequent sort of license required. You'll need this license to conduct normal business operations as well as get a rental warehouse.

However, you'll need an operating business license if you're in the manufacturing industry. Not to mention that you would need a construction sector license if you're in the construction industry.


If you are looking to start a company in Indonesia, you need to learn more about the location. You might need a rental warehouse, and you can contact us anytime through https://www.slp.id/en/ to get more information.

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