How to open a company in Indonesia in 2026: requirements, taxes, and registration steps

Indonesia continues to strengthen its position as one of the most promising markets in Southeast Asia. In 2026, the country will offer favorable conditions for foreign investors thanks to reforms in business regulation, digitalization, and incentives for capital inflows.

Business Benefits

Indonesia is the region's largest economy, with a population of over 270 million. A rapidly growing middle class, developing infrastructure, and government support make the country an attractive location for starting companies. Particular attention is paid to the technology, tourism, logistics, and manufacturing sectors.

Furthermore, the government continues to simplify registration and licensing procedures through online platforms, significantly reducing bureaucratic burdens.

Main Company Forms

In 2026, foreign investors most often choose the PT PMA (Penanaman Modal Asing) form—a company with foreign capital. It allows for commercial activity within the country and profitability.

Local companies (PTs) also exist, but they require the participation of Indonesian partners. The choice of structure depends on the business objectives, the size of the investment, and the chosen industry.

Registration Steps

The company registration process in Indonesia involves several key steps:

• Choosing and reserving a company name
• Determining the shareholder and director structure
• Preparing incorporation documents
• Obtaining permits through the OSS (Online Single Submission) system
• Registering a tax identification number (NPWP)
• Opening a bank account

As of 2026, most of these procedures can be completed online, significantly speeding up the process—registration takes 2 to 6 weeks on average.

Capital Requirements

The minimum authorized capital for a PT PMA remains relatively high, but requirements may vary depending on the industry. It is also important to consider the investment plan and proof of financial solvency.

Taxation and Regulation

Indonesia offers a competitive tax system. The corporate tax rate is approximately 20%, with incentives available for certain industries. Double taxation treaties are also in effect with a number of countries. Business regulation is becoming more transparent, but it's important to consider local specifics and the need to comply with industry licenses.

Conclusion

Company registration in Indonesia in 2026 is a strategically advantageous step for entrepreneurs seeking to enter the Asian market. Despite certain requirements, the country offers ample opportunities for business growth and scaling.

If you're considering tax optimization and simplifying international operations, consider the IT-OFFSHORE format. This allows you to use foreign jurisdictions to register IT companies with more flexible regulations, a reduced tax burden, and access to global markets. Combined with an Indonesian presence, this strategy can create powerful synergies for the development of a technology business.