Why International Businesses Needed Company Incorporation in Indonesia

What is Indonesia company incorporation? Indonesia is currently the fourth most populated country in the whole world. It’s been a great transit point for global entrepreneurs who can grow Indonesia s economy, transform resources into cash and a place for global investors to do international trade and import because it’s strategically situated in between two oceans (Asian and Australian) and two oceans (maritime and Indian). It’s a small country with a rich but neglected potential.

Company Incorporation in Indonesia – Key Considerations For Foreign Investors

It is therefore imperative to understand that Indonesia company incorporation means to establish an offshore company which will be utilized to conduct trade and receive payments in different countries. There are three ways of conducting business in Indonesia such as ‘domestic’ trading, ‘remote controlled’ and ‘remote controlled’ company formation. In Indonesia domiciled or foreign-owned companies need to appoint a director (typically one of the Indonesian citizens) who can act as the company secretary. In case of ‘remote controlled’ company formation, foreigners need to appoint a foreign owned or offshore company secretary who will conduct company business through a chain of command in Indonesia.

Foreign corporations may choose to register their foreign-owned property in Indonesia by approaching an Indonesian-registered agent (ROM). This is one way of obtaining a permanent legal status in Indonesia, but this also takes time. The other way is to register a ‘semblance’ or a partnership – a corporation in Indonesia is considered as a partnership and is subject to local laws of inheritance and corporate taxes. This is one reason why it may take years to get an Indonesian company registration.


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