Indonesia

Ease of Doing Business in

Indonesia

This page summarizes Doing Business 2013 data for Indonesia. The first table lists the overall "Ease of Doing Business" rank (out of 185 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 242,325,638
GNI Per Capita (US$) 2,940
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
128 130 down 2

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
55.7 55.5 down 0.2
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 166 161 up -5
Dealing with Construction Permits 75 72 up -3
Getting Electricity 147 158 up 11
Registering Property 98 99 up 1
Getting Credit 129 127 up -2
Protecting Investors 49 46 up -3
Paying Taxes 131 129 up -2
Trading Across Borders 37 40 up 3
Enforcing Contracts 144 145 up 1
Resolving Insolvency 148 149 up 1

Economy Profile

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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 2013 Rank 166 DB 2012 Rank 161 Change in Rank down-5
DB 2013 DTF** (% points) 71.3 DB 2012 DTF** (% points) 71.0 Improvement in DTF** (% points) up0.3
YearNew business densityNumber of new limited liability companies
2011 0.2743,775
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)
9 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)
47 36 12

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)
22.7 22.4 4.5

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.

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Paid-in Min. Capital (% of income per capita)
42.0 13.4 13.3
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 a certificate of company domicile from the local municipality 2 days no charge
4 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
5 Apply to the Ministry of Law and Human Rights for approval of the deed of establishment 7 days included in procedure 4
6 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 IDR 500,000 (TDP)
7 Register with the Ministry of Manpower 14 days no charge
* 8 Apply for the Workers Social Security Program (Jamsostek Program) 7 days (simultaneous with previous procedure) no charge
* 9 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 indicators across all economies included in Doing Business since each indicator was 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...

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