Indonesia

Ease of Doing Business in

Indonesia

This page summarizes Doing Business 2015 data for Indonesia. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region East Asia & Pacific
Income Category Lower middle income
Population 249,865,631
GNI Per Capita (US$) 3,580
City covered Jakarta, Surabaya
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
114 117 down 3

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
59.15 58.10 down 1.05
Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

Subnational Data


Viewing the data for

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2015 DTF** (% points) 68.97 DB 2014 DTF** (% points) 62.79 Change in DTF** (% points) up6.18

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Jakarta East Asia & Pacific OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
10.0 7.3 4.8

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
52.5 34.4 9.2

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
20.1 27.7 3.4

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in min. capital (% of income per capita)
35.5 256.4 8.8
No. Procedure Time to Complete Associated Costs
1 Hire a notary to pay the fee for name clearance at a bank; obtain the standard form of the company deed; arrange for a notary electronically; obtain clearance for the Indonesian company's name at the Ministry of Law and Human Rights; notarize company documents; pay the State Treasury for the non-tax state revenue (PNBP) fees for legal services at a bank 6 days See procedure details
2 Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Less than one day (online procedure) included in procedure 5
3 Obtain the Building Management Domicile Certificate 1 day no charge
4 Apply for the Certificate of Company Domicile 2 days no charge
5 Apply at the Ministry of Industry and Trade for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) 15 days no charge
6 Obtain company registration certificate (Tanda Daftar Perusahaan/TDP) from the Local Government Office 14 days no charge
7 Register with the Ministry of Manpower 14 days no charge
* 8 Apply for the Workers Social Security Program (BPJS Ketenagakerjaan) 7 days (simultaneous with previous procedure) no charge
* 9 Apply for healthcare insurance with BPJS (Badan Penyelenggara Jaminan Sosial) Kesehatan  7 days (simultaneous with previous procedure) no charge
* 10 Obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP) 1 day (simultaneous with previous procedure) no charge
* Takes place simultaneously with another procedure.

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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