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Open an IT Company in Indonesia

Open an IT Company in Indonesia

Investors interested in starting a business in Indonesia have many reasons for doing so. Among these, the legislation which favors foreign investments in certain industries, the types of structures which are similar to those in Western countries and the incentives granted by the authorities.

Speaking about incentives, one of the industries which have recently undergone spectacular improvements is the information technology sector in Indonesia. During the last few years, the government has modernized several IT laws and has created specific programs which help enterprisers who open IT companies here.

Below, our company formation agents in Indonesia explain the steps for opening an IT company here.

We can also give you information if your goal is to start a company in this field and then immigrate to Indonesia.

Registering an IT business in Indonesia

The first step for opening an IT business in Indonesia is to choose the right type of structure and register it with the Companies Register. Our local consultants can help foreign entrepreneurs with this process.

There are no special procedures related to starting a business in the IT sector, however, there are several laws which must be respected when offering services to the public. Among these, the recently amended Electronic Information and Transactions Law which provides for a higher degree of privacy related to storing personal information.

Also, the IT company will be required to register with the Ministry of Communication and Information and will be supervised by the Telecommunications Regulatory Body and the Broadcasting Commission in Indonesia.

Our Indonesia company incorporation consultants can help with the registration of an IT business.

Incentives for the IT industry in Indonesia

In 2017, the Indonesian government has enabled a development plan for the improvement of the IT industry which implies, among others, the following:

  • a simple taxation system for e-commerce companies with a certain annual income; this can be a good reason to immigrate to Indonesia based on making an investment;
  • tax incentives for joint-venture companies;
  • simplified registration requirements with the regulatory authorities.

According to recent statistics, Indonesia is expected to have 125 million users of Internet and high-tech products by 2025.

For assistance in opening an IT company in Indonesia, please feel free to contact our local advisors.