Indonesia has been gaining in prominence as a location in which many have decided to start a company. However, those who choose to start a company in Indonesia ought to be aware of the risks of doing so before they proceed with the setup and operation of the new company in Indonesia.

Starting a Company in Indonesia

 

Many prospective company owners, whether locals or foreigners, have expressed interest in starting a company in Indonesia. This fact should not be one which is surprising to anyone for various reasons. Indonesia’s economy has been in a constant state of growth for many years. The country’s gross domestic product (GDP) has increased every year since 1999. The government of Indonesia has also been welcoming of foreigners who are interested in starting a company there. The Indonesian government recognizes that the contributions of foreign entrepreneurs only serve to strengthen the economy of Indonesia. Corporate tax rates, while not particularly low, are nevertheless reasonable, especially when measured against most other countries in the world.

However, anyone who plans to start a company in Indonesia ought to be aware of the inherent risks that come with doing so. Anyone who attempts to start a company in Indonesia but fails to make adequate plans to address these risks is likely to witness the eventual failure of the company.

Relative Difficulty of Conducting Business Activities

The proper conducting of business activities in Indonesia is not particularly easy. According to the World Bank’s Ease of Doing Business Index, Indonesia ranks 73rd. Although this position represents a significant improvement from its rankings in previous years, it is nevertheless a detail of which those starting a company in Indonesia must take note. When the rankings are restricted to only countries in the Asia-Pacific region, Indonesia ranks 12th, behind many of its neighbouring countries. As the conducting of business activities in the country is not always as easy as it could be, those who plan on starting a company there must find ways to overcome these challenges so that they may discover simpler and more viable ways in which business activities can be conducted.