Ease of Doing Business in

Palembang - Indonesia

This page summarizes Subnational Doing Business in Indonesia 2012 data for Palembang. 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.

Economy Overview

Region East Asia & Pacific
Income Category Lower middle income
Population 246,864,191
GNI Per Capita (US$) 3,420.00
Ease of Doing Business Rank among 20 cities in Indonesia Top city in Indonesia
n.a. n.a.
Topic Rankings Rank among 20 cities in Indonesia Top city in Indonesia
Starting a Business 11 Yogyakarta
Dealing with Construction Permits 3 Balikpapan
Registering Property 3 Bandung, Jakarta

Subnational Data

Starting a Business


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.

Indicator Palembang 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)
34.0 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)
19.0 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.

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Paid-in Min. Capital (% of income per capita)
46.6 293.3 10.4
No. Procedure Time to Complete Associated Costs
1 Arrange for a notary; obtain the standard form of the company deed; obtain clearance for the company name electronically from the Ministry of Law and Human Rights 4 days IDR 200,000 (name clearance and reservation)
2 Notarize company documents before a notary public 1 day IDR 3,020,000 (notary fee)
3 Obtain a certificate of company domicile from the local municipality 2 days No cost
4 Pay the State Treasury for the non-tax state revenue (PNBP) fees for legal services at a bank 1 day No cost
5 Apply to the Ministry of Law and Human Rights for approval of the deed of establishment 14 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)
6 Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office 3 days No cost
7 Obtain a location permit (SITU) from the Licensing office (Kantor Pelayanan Perijinan Terpadu, KPPT) 3 days IDR 300,000
8 Apply for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) and the registration certificate (Tanda Daftar Perusahaan, TDP) at the Licensing office (Kantor Pelayanan Perijinan Terpadu, KPPT) 5 days No cost
* 9 Register with the Ministry of Manpower at the local Manpower Office 2 days No cost
* 10 Apply for the Workers Social Security Program (Jamsostek Program) 4 days No cost
* Takes place simultaneously with another procedure.

Subnational Data