Indonesia

Ease of Doing Business in

Indonesia

This page summarizes Doing Business 2014 data for Indonesia. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region East Asia & Pacific
Income Category Lower middle income
Population 246,864,191
GNI Per Capita (US$) 3,420
City covered Jakarta
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
120 116 down -4

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
57.83 57.69 down 0.14
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.

Subnational Data


 

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 2014 Rank 175 DB 2013 Rank*** 171 Change in Rank down-4
DB 2014 DTF** (% points) 69.19 DB 2013 DTF** (% points) 68.76 Change in DTF** (% points) up0.43

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

Indicator Indonesia 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 7 5

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)
48.0 37.8 11.1

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)
20.5 29.8 3.6

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)
38.5 293.3 10.4
No. Procedure Time to Complete Associated Costs
1 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. 4 days included in procedure 4
2 Notarize company documents before a notary public 4 days IDR 4,464,464
3 Obtain the Building Management Domicile Certificate 1 day no charge
4 Apply for the Certificate of Company Domicile 2 days no charge
5 Pay the State Treasury for the non-tax state revenue (PNBP) fees for legal services at a bank 1 day IDR 200,000 (name check) + IDR 1,580,000 non-tax state revenue (PNBP) fees for legal services
6 Apply to the Ministry of Law and Human Rights for approval of the deed of establishment 7 days included in procedure 4
7 Apply at the One Stop Service for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) and the company registration certificate (Tanda Daftar Perusahaan/TDP) 15 days no charge
8 Register with the Ministry of Manpower 14 days no charge
* 9 Apply for the Workers Social Security Program (Jamsostek Program) 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 (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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

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