Doing Business with Indonesia

Exporting to Indonesia involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Indonesia’s import regulations and standards for your product.
   • Check for any product-specific certifications needed.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Indonesia.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with Indonesian labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company experienced with exports to Indonesia.
   • Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Pay any necessary duties and taxes.

6. Understand Duties and Taxes

   • Familiarize yourself with Indonesia’s import duties and applicable taxes.

7. Distribution and Sales

   • Establish distribution channels within Indonesia.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Directorate General of Customs and Excise
  • Website: Customs Indonesia
• Indonesia Investment Coordinating Board (BKPM)
  • Website: BKPM

Importing goods into Indonesia involves several steps. Here’s a comprehensive guide:

1. Obtain Importer Identification Number (API)

   • Register for an API through the Ministry of Trade.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code for your products.

3. Check Import Regulations and Restrictions

   • Ensure compliance with Indonesia’s import regulations and any necessary licenses or permits.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order.

6. Customs Clearance

   • Work with a customs broker to handle the clearance process.
   • Submit required documents, such as the Bill of Lading and commercial invoice.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and Value Added Tax (VAT).

8. Receive Your Goods

   • Arrange for the transportation of goods from the port to your warehouse.

Key Contacts

• Directorate General of Customs and Excise
  • Website: Customs Indonesia
• Ministry of Trade
  • Website: Ministry of Trade

Incorporating a company in Indonesia involves several steps. Here’s a comprehensive guide:

1. Choose a Business Structure

   • Decide on the type of company (e.g., PT, PMA).

2. Reserve a Company Name

   • Check availability and reserve your company name with the Ministry of Law and Human Rights.

3. Draft the Articles of Association

   • Prepare the Articles of Association with a notary.

4. Obtain Approval for Incorporation

   • Submit the Articles of Association to the Ministry of Law and Human Rights for approval.

5. Obtain a Deed of Establishment

   • Have the deed notarized after approval.

6. Register for Tax Identification Number (NPWP)

   • Register with the local tax office to obtain an NPWP.

7. Register with the Online Single Submission (OSS) System

   • Obtain a Business Identification Number (NIB) and necessary permits.

8. Open a Bank Account

   • Open a corporate bank account in the company’s name.

Costs

• Notary Fees: Vary based on the notary and complexity of the documents.
• Government Fees: Vary depending on the business structure and capital.

Key Contacts

• Ministry of Law and Human Rights
  • Website: Ministry of Law and Human Rights
• Indonesia Investment Coordinating Board (BKPM)
  • Website: BKPM

Setting up a manufacturing plant in Indonesia involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze demand, competition, and location advantages.

2. Choose a Suitable Location

   • Consider proximity to raw materials, transportation, and workforce availability.

3. Incorporate Your Company

   • Register your business with the Ministry of Law and Human Rights.

4. Obtain Necessary Permits and Licenses

   • Apply for environmental, zoning, and construction permits.
   • Obtain specific industry-related licenses if required.

5. Secure Financing

   • Explore options through banks and investment partners.

6. Design and Construct the Facility

   • Hire architects and contractors for design and construction.
   • Ensure compliance with local building codes and regulations.

7. Install Equipment and Machinery

   • Purchase and set up machinery necessary for production.
   • Ensure safety and operational standards are met.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Indonesia Investment Coordinating Board (BKPM)
  • Website: BKPM
• Ministry of Industry
  • Website: Ministry of Industry

Registering a trademark in Indonesia involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered.
   • Use the Indonesian Trademark Database.

2. Prepare Your Application

   • Include details such as the trademark design, classification of goods/services, and applicant information.

3. Submit the Application

   • File the application online through the Directorate General of Intellectual Property (DGIP) or physically at their office.

4. Pay the Application Fee

   • Fees vary based on the type and number of classes.

5. Examination Process

   • The DGIP examines the application for compliance and potential conflicts.
   • Respond to any objections or requests for additional information.

6. Publication and Opposition

   • If approved, the trademark is published for opposition.
   • A period of 30 days is provided for third parties to oppose the registration.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered.
   • Receive the Certificate of Registration from DGIP.

8. Maintain and Renew the Trademark

   • Trademarks are valid for 10 years and can be renewed indefinitely.
   • Submit renewal applications to maintain protection.

Costs

• Application Fees: Approximately IDR 1,800,000 per class.
• Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

• Directorate General of Intellectual Property (DGIP)
  • Website: DGIP

Resolving commercial disputes in Indonesia involves several steps. Here’s a guide on the process:

1. Attempt Negotiation

   • Begin by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions.
   • Mediation is often quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution.
   • Follow the rules set by the Indonesian National Board of Arbitration (BANI).

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit in the appropriate civil court or commercial court.
   • Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case.
   • Follow legal procedures as guided by your attorney.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Indonesian National Board of Arbitration (BANI)
  • Website: BANI
• Ministry of Law and Human Rights
  • Website: Ministry of Law and Human Rights

When considering doing business in Indonesia, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: Bahasa Indonesia is the official language, but English is commonly used in business settings.
• Business Etiquette: Building relationships and trust is crucial. Respect for hierarchy and formal greetings are important.

Political Factors

• Government Structure: Presidential republic with a stable political environment.
• Regulatory Environment: Ongoing reforms to improve ease of doing business, though bureaucracy can pose challenges.

Economic Factors

• Growing Economy: Southeast Asia’s largest economy with a focus on infrastructure and digital transformation.
• Foreign Exchange: The currency is the Indonesian Rupiah (IDR). Be aware of exchange rate fluctuations.

Rule of Law

• Legal Framework: Comprehensive legal system with protection for property rights.
• Judiciary: Independent but may experience delays due to case backlogs.

Business Environment

• Infrastructure: Improving, with significant investments in transportation and digital infrastructure.
• Workforce: Young and growing workforce with increasing emphasis on education and skills development.

Key Resources

• Indonesia Investment Coordinating Board (BKPM)
  • Website: BKPM
• Ministry of Trade
  • Website: Ministry of Trade
• Bank Indonesia
  • Website: Bank Indonesia