# Indonesia

 Country code: ID · Currency: IDR · Language: Indonesian

**Pros**
- Competitive corporate tax rates and various tax incentives within specialized economic zones.
- Extensive infrastructure projects for improved connectivity across the archipelago and enhanced logistics.
- Affordable cost of living for high-quality lifestyle and capital preservation.

**Cons**
- Pervasive corruption and complex bureaucracy as significant barriers to entry and operation.
- Protectionist trade regulations and restrictive foreign ownership limits in several key sectors.
- Unpredictable legal environment and weak enforcement of private property and contract rights.

Long story short: A discreet envelope to the right official unlocks in a day what an official process would take six months to grind out, corruption here literally greases the machine.

Behind that heaviness sits a massive market and a middle class expanding fast, solid local banks, and a tax load you can live with as long as you set up a proper structure and play by the rules.

Other than that: in Jakarta's wealthy neighborhoods, crime is basically a non issue, infrastructure is modern, the food is excellent, and Bali is just a two hour flight away when you need to unwind.

## Will your income be taxed?

Long story short: YES, A LOT.
Income gets *fleeced* in **Indonesia** (top marginal rate **35%**), but the residency test is surprisingly hands-off.

The bill is brutal for residents; the whole game is simply not to become one by accident.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 5 → 35% | progressive · 5 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,360 | 5% |
| 3,360 – 14,000 | 15% |
| 14,000 – 28,000 | 25% |
| 28,000 – 280,000 | 30% |
| 280,000 + | 35% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: YES, A LOT.
**Indonesia** shears capital gains hard (**35%** at the top), but at least it stops there: no annual wealth levy, no inheritance regime.

Selling is the trigger; as long as you don't pull it, the position compounds untouched.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 35% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,360 | 5% |
| 3,360 – 14,000 | 15% |
| 14,000 – 28,000 | 25% |
| 28,000 – 280,000 | 30% |
| 280,000 + | 35% |

| Metric | Value | Detail |
| --- | --- | --- |
| Dividend tax | 10% | flat |
| Interest income | 20% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | FLAT TAX | Rate: 0.2% · Indonesia applies a final withholding tax on the gross transaction value (not capital gains). Under PMK 50/2025 (effective Aug 2025), the rate is 0.21% for registered exchanges and 1% for unregistered/foreign ones. Crypto-to-crypto swaps are taxable events. Mining and other crypto-related services are subject to progressive income tax rates up to 35%. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | SIGNED | committed but not yet enforced |

## Easy to run a company there?

Long story short: NO.
Corporate tax in **Indonesia** is **22%**, but the rate isn't what hurts. *Misuse of corporate assets is a criminal offense*; the textbook case is the French *abus de biens sociaux*: spend your own company's money on yourself and you can end up prosecuted, even as sole shareholder, because the company is a separate legal person and your consent means nothing.

And the *registries are public*: your name as shareholder, free to browse.

For an owner-operator, those two together weigh far more than the rate, and unlike the rate they don't negotiate. Run it clean and you're fine; run it casually and you'll get burned.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 22% | flat |
| VAT standard rate | 11% | single rate · no reduced tiers |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 11% |
| Food & drink | non-alcoholic | 11% |
| Food & drink | alcohol | 11% |
| Print media | books | 11% |
| Print media | ebooks | 11% |
| Print media | newspapers | 11% |
| Culture | cultural events | 11% |
| Culture | cinema | 11% |
| Culture | theatre | 11% |
| Culture | museums | 11% |
| Culture | sports | 11% |
| Transport | public transit | 11% |
| Transport | rail | 11% |
| Transport | air | 11% |
| Hospitality | hotels | 11% |
| Hospitality | restaurants | 11% |
| Hospitality | takeaway | 11% |
| Health | pharma | 11% |
| Health | medical dev. | 11% |
| Energy | electricity | 11% |
| Energy | natural gas | 11% |
| Energy | district heat. | 11% |
| Energy | domestic fuel | 11% |
| Utilities | water | 11% |
| Utilities | waste | 11% |
| Clothing | kids clothing | 11% |
| Digital & telecom | digital | 11% |
| Digital & telecom | telecom | 11% |
| Digital & telecom | broadcast | 11% |
| Construction | construction | 11% |
| Construction | social housing | 11% |
| Agriculture | farm inputs | 11% |
| Agriculture | animal feed | 11% |
| Personal services | funeral | 11% |
| Personal services | hairdressing | 11% |
| Finance | insurance | 11% |
| Finance | financial svc. | 11% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Article 374 of the Indonesian Penal Code (KUHP) · Indonesia strictly adheres to the principle of the 'Autonomy of the Legal Entity' under Law No. 40 of 2007. A Limited Liability Company (PT) is a separate legal person, and its assets are distinct from those of its shareholders. Consequently, a sole director-shareholder who misappropriates company funds for personal use without formal corporate authorization (such as a recorded dividend distribution) can be prosecuted for 'Embezzlement in Office' (Penggelapan dalam Jabatan) under Article 374 of the Penal Code, as the law views the company as the victim of the theft of its own property. |
| Shareholders privacy | PUBLIC PAYWALL | Direktorat Jenderal Administrasi Hukum Umum (Ditjen AHU) - Kementerian Hukum dan HAM |
| Directors privacy | PUBLIC PAYWALL | Direktorat Jenderal Administrasi Hukum Umum (Ditjen AHU) - Kementerian Hukum dan HAM |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Perseroan Terbatas Penanaman Modal Asing (PT PMA) (Foreign Direct Investment Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Notary fees for Deed of Establishment (Akta Pendirian) | USD 560 |  |
| Professional legal and incorporation service fees | USD 1,680 |  |
| Government administrative fees (Kemenkumham and OSS registration) | USD 280 |  |
| Total | USD 2,520 |  |

## A good fit for a holding?

Long story short: YES.
**Indonesia** pairs a *moderate* treaty network (**40** signed) with a *full participation exemption* (**100%** on qualifying dividends and gains).

A perfectly honest holding base: not the NL/LU/SG first division on treaty count, but the pipes don't leak.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | 100% | no minimum threshold · no holding period |
| CFC rules | APPLY | Indonesia applies deemed dividend regulations to certain income generated by controlled foreign entities. A CFC is defined as a foreign business at least 50% owned by an Indonesian taxpayer or collectively by Indonesian taxpayers. This framework also encompasses income from indirectly held CFCs meeting specific ownership criteria. These provisions do not apply if the foreign entity's shares are traded on a recognized stock exchange. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 20% | non-resident outbound |
| WHT · interest | 20% | non-resident outbound |
| WHT · royalties | 20% | non-resident outbound |
| Tax-haven WHT | 20% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 37 | active |
| Treaties pending | 2 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Indonesia** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | — | available path to naturalisation |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: YES, CLOSELY.
**Indonesia** signed *every exchange framework that matters* and runs a *public corporate registry*. Whatever you do here (earn, hold, structure) is reported, searchable, or both.

Your money is watched from every angle; if discretion is part of your plan, this isn't your jurisdiction.

**Multilateral reporting frameworks — 3/9 active · 4 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2018 |
| CARF | Signed | 2024 |
| FATCA | None | — |
| MLI | In force | 2020 |
| BEPS | Signed | — |
| MAAC | In force | 2015 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Indonesia** is *clean on every major blacklist* (FATF, EU, France, Spain, Portugal, Brazil) and sits *inside* the FATF club.

Wiring money to or from here raises zero eyebrows: no flags, no extra questions, no compliance officer waking up. Reputationally, a non-event.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Indonesia** is *locked down* (RSF rank **\#127**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 127/180 | score 44 · ↓ 16 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Project Garuda

Bank Indonesia

   PROOF OF CONCEPT   —   [announce →](https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/sp_2627024.aspx "Announcement")    Digital Rupiah

The central bank says that the CBDC will complement existing banknotes and coins and will develop “national financial systems and the integration of national digital economy and finance.The project complements the preceding Bank Indonesia initiatives to spur national digital transformation agenda i.e., the Blueprint for Indonesian Payment System (IPSB) 2025 and Blueprint for Money Market Development 2025.

Bank Indonesia

   PROOF OF CONCEPT   —   [announce →](https://www.bi.go.id/id/publikasi/kajian/Pages/Blueprint-Sistem-Pembayaran-Indonesia-2030.aspx "Announcement")

 programs 2

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Indonesia**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**5/11**), but for an online business this is swimming against the current.

**Accept payments — 3/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

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