How to Register a Company in Indonesia

by Alexander Cequea; Updated September 26, 2017
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To start a company in Indonesia, you will need to initially register your business by obtaining a business license. You will need to start on this process well before you plan to open your company, since it may consume more time than expected to finish all of the legal procedures. In Indonesia, the process of registering a company can take about three months.

Items you will need

  • Deed
  • Notarized company documents
  • Tax payer registration number
Step 1

Obtain the standard form of the company deed. Arrange for a notary electronically and obtain clearance for your company’s name at the Ministry of Law and Human Rights. You must initially check the uniqueness of the name to avoid rejection after submission. The process is completed through a computerized processing system, which you can asses only through a notary public. This may take up to 7 days and cost you 385,000 rupiah (Rp.) (U.S. $42) for name clearance and reservation. This procedure is unnecessary if you are confident that the name is unique.

Step 2

Notarize company documents before a notary public. This may also take about 7 days and cost up to Rp. 2,526,816 (U.S. $280).

Step 3

Pay the State Treasury for the nontax state revenue (PNBP) fees for their legal services at a bank. The fee may be around Rp. 200,000 (U.S. $22). This process is normally easier to accomplish than in any other country and just takes a day.

Step 4

Apply for approval of the deed of establishment to the Ministry of Law and Human Rights. You will need to submit the application electronically along with certificate of a bank account and Certificate of Company Domicile. This will take 14 days and involve Rp. 1,000,000 (U.S. $111) for deed approval and Rp. 580,000 (U.S. $64) for Publication in the State Gazette.

Step 5

Register with the Company Register or Department of Trade and get a registration certificate. There is no official fee, and the process will take 15 days.

Step 6

Obtain a taxpayer registration number (NPWP) and a value-added tax (VAT) collector number (NPPKP) from the Directorate General of Taxation. There are no charges for this process. This may take one or two days.

Step 7

Apply for the permanent business trading license, which is referred as Surat Izin Usaha Perdagangan (SIUP) in Indonesia. This will take 5 days and is free of cost. You will need to submit a copy of the articles of association, location of the company’s offices, tax registration number and the identity card of the company director with the application.

Step 8

Register with the Ministry of Manpower. This will take 14 days and is free of cost.

Step 9

Apply for the Workers Social Security Program if you hire 10 or more workers. This will take about 7 days.

Warnings

  • Bribery sometimes plays a part in doing business in Indonesia.

About the Author

Alexander Cequea has been writing since 2008. He is an activist, speaker and film producer whose work has been featured in "Enlightennext Magazine" and the Environmental News Network. Cequea is currently producing a documentary about sustainability and consciousness. He has a Master of Business Administration in sustainable business from Maharashi University.

Photo Credits

  • banknotes of indonesia image by Steve Lovegrove from Fotolia.com