Ease of Doing Business in

Jakarta - Indonesia

Region East Asia & Pacific
Income Category Lower middle income
Population 257,563,815
GNI Per Capita (US$) 3,440.00

This page summarizes Subnational Doing Business in Indonesia 2012 data for Jakarta. The first table shows its rank among 20 cities/regions in Indonesia. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Topic Rankings Rank among 20 cities in Indonesia Top city in Indonesia
Overall n.a n.a
Starting a Business 8 Yogyakarta
Dealing with Construction Permits 19 Balikpapan
Registering Property 1 Bandung
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Legal form Limited Liability Company - Perseroan Terbatas (PT)
City Jakarta
Indicator Jakarta East Asia & Pacific OECD
Procedure (number) info_outline 8 7.0 4.8
Time (days) info_outline 45 23.9 8.3
Cost (% of income per capita) info_outline 17.9 19.0 3.1
Paid-in min. capital (% of income per capita) info_outline 46.6 12.3 9.2
  • No. Procedure Time to Complete Associated Costs

    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.

    The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company, to avoid a rejection by the Ministry of Justice and Human Rights of the company's deed of establishment and articles of association. Because the process must be done through a computerized processing system, the reservation and clearance must be done by a notary public (because the new computerized system for nontax state revenue payments may be accessed only by a notary public). The reserved name will be blocked for 60 days. If the founding shareholders are confident that the same name has not been used by another Indonesian company, this procedure is not necessary.

    4 days IDR 200,000 (name clearance and reservation)

    Notarize company documents before a notary public

    4 days IDR 2,526,816 (notary fee)

    Pay the State Treasury for the non-tax state revenue (PNBP) fees for legal services at a bank

    Because the new computerized system for nontax state revenue payments (PNBP)—which has been implemented by the Ministry of Justice and Human Rights—may be accessed only by a notary public, payment for registering or establishing a company is normally easier through the notary.
    The requirement to pay the non-tax state revenue (PNBP) fee for legal services in relation to the establishment of a PT is obtained from the information stated in the website of the Legal Entity Administration System (known as SABH (Sistem Administrasi Badan Hukum) (www.sisminbakum.go.id), where it is informed that there is a PBNP fee to be paid for the purpose of company establishment in the amount of Rp. 200,000 and to be paid through the Notary.

    1 day No cost

    Apply to the Ministry of Law and Human Rights for approval of the deed of establishment

    Based on Article 9, 10, 29 and 30 Indonesian Company Law No. 40 year 2007, the application for approval of Ministry of Law and Human Right (the "Ministry of Law") on establishment of company should be be able to file electronically by attaching with the certificate of bank account, copy of the relevant bank transmittal advice, NPWP (Tax Registration Number), Certificate of Company Domicile. the process will be taken as follows:
    -The application should be filled at the latest 60 days since the date of establishment deed;
    - Since the application has already fulfilled, the Ministry of Law directly electronically stated no objection on said application. However, if the application is not fulfilled, the Ministry of Law will directly electronically stated his objection on said application.
    - in 30 days since the date of no objection by Ministry of Law, the applicant should submit the original application and supporting documents;
    -7days after fulfillment of above requirements, Ministry of Law will issue the legalisation on the establishment of the company.
    -Data of company which its establishment has been approved by Ministry of Law i.e name, domicile, object and purpose, period, capital company will be inserted into Company Registry.
    - The Ministry of Law will announce the establishment of company in Supplement State Gazette (TBNRI) within 14 days of the Ministry's Approval Letter.
    The cost of this procedure is based on the Schedule to the Government Regulation Number 38 of 2009 concerning Types and Tariffs on Non-Tax State Revenues Applied for in the Department of Law and Human Rights which comes into effect on 28 May 2009.

    7 days IDR 1,580,000 (IDR 1,000,000 for validation of company as legal entity + IDR 30,000 for publication in the State Gazette, BNRI + IDR 550,000 for publication in the Supplement to the State Gazette, TBNRI)

    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)

    The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non-facility company engaging in trading business. The SIUP contains details about the company activities and the person in charge of the company (normally the President Director). The Ministry of Industry and Trade, which issues the SIUP for a nonfacility company, may require a letter of good conduct from the Indonesian police in support of the person in charge of the company. Normally, the following copy of documents should be attached for the application for a SIUP:
    - The articles of association (copy).
    - An attestation of location and address of the company’s offices.
    - Identity card of the company President Director.
    - Notary deeds
    After reviewing the application, the Municipality passes it to the technical agency at the regional office for cooperatives for further review- it takes 2 days to get the signature of the head of that office as the authority is not delegated. Once the application is back, the SUIP is provided.

    Although there is no official charge, there is usually an unofficial administrative fee. Fees depend on negotiation and usually start from IDR 400,000 to 500,000 for a small company, IDR 600,000 to IDR 700,000 for a medium-size company; and IDR 750,000 to IDR 1,000,000 for a large company.the cost is included in procedure 2.
    SIUP and TDP can be obtained at the One Stop Shop Service, through the Standard Operating Procedure.
    Based on Regulation of Ministry of Trading No. 36/M-Dag/PER/9/2007 on Issuing Business Trading License (SIUP), the SIUP will be issued in 3 days since the receiving of completed documents but in practice it takes 3-7 days.

    15 days IDR 500,000

    Register with the Ministry of Manpower

    According to Law No. 13/2003, companies with more than 10 workers or a monthly payroll of IDR 1 million must register with the Ministry of Manpower. This procedure can be completed concurrently with other post-registration procedures by filing the manpower compulsory report and company regulations with the Ministry of Manpower. Although there is no official fee, there may an unofficial administrative fee that depends on negotiation and usually starts at IDR 100,000.

    14 days No cost
    * 7

    Apply for the Workers Social Security Program (Jamsostek Program)

    According to legal provisions on workers’ social security (Law No. 3/1992), it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR 1 million a month to apply for the Workers Social Security Program (Jamsostek), operated by the executing agency. This social security program covers occupational accident security, death security, old age security, and health maintenance.

    A company or an individual is not obligated to enroll its employees in the social security program if it offers an independent employee social security program with benefits comparable or better than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. 14/1993, as amended by Government Regulation No. 28 /2002).

    7 days No cost
    * 8

    Obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP)

    Regulation of Directorate General of Taxation No. 44/PJ/2008 which comes into effect on 20 October 2008 concerning Procedures of Application of Taxpayer Registration and/or Taxable Enterpreneur Number, Amendment of Data and Transfer of Taxpayer and/or Taxable Enterpreneur aimed to incease the service to the taxpayer. The regulation states that within 1 year as of the issuance of NPWP, the relevant Tax Office will conduct field confirmation regarding the correct data/identity of the taxpayer a. The person/entity can apply for NPWP in the relevant tax office where the company is located or can apply it online through http://www.pajak.go.id, choose e-registration to make account as a taxpayer and then follow the procedures therein, by filling the form and attaching copies of deed of establishment and its amendment if any, identity card/KTP of one of active Director, statement letter regarding confirmation on place of business from one of the active Director (form is provided), POA and identity card/KTP of the authorizee. The NPWP card and Registered Statement Letter is obtained within 1 calendar day upon the completeness of the required document without and fee, charge and/or retribution.

    1 day No cost

    * Takes place simultaneously with previous procedure.