#

Ease of Doing Business in

Indonesia

Indonesia Download Profile (2090.2KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 257,563,815
GNI Per Capita (US$) 3,440
City covered Jakarta, Surabaya

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 91 106 up
15
61.52 58.51 down
3.01
Starting a Business 151 167 up
16
76.43 67.51 up
8.92
Dealing with Construction Permits 116 113 down
3
65.73 65.26 up
0.47
Getting Electricity 49 61 up
12
80.92 77.60 up
3.32
Registering Property 118 123 up
5
55.72 53.24 up
2.48
Getting Credit 62 70 up
8
60.00 55.00 up
5.00
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 104 115 up
11
69.25 64.47 up
4.78
Trading across Borders 108 113 up
5
65.87 63.53 up
2.34
Enforcing Contracts 166 171 up
5
38.15 35.37 up
2.78
Resolving Insolvency 76 74 down
2
46.46 46.48 down
0.02

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

69.25

DB 2016 DTF (% points):

64.47

Change in DTF (% points):

up4.78

Indicator Jakarta East Asia & Pacific OECD high income
Payments (number per year) info_outline 43 22.9 10.9
Time (hours per year) info_outline 221 198.0 163.4
Total tax rate (% of profit) info_outline 30.6 33.9 40.9
Postfiling index (0-100) info_outline 76.5 59.6 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 13 75 12.5% - 25% * taxable income 16.90
Employer paid - Social security contributions 1 Online 56 6% (2% pension contribution as of July 1, 2015) gross salary 5.91
Employer paid - Health insurance contributions 1 online 4% gross salary 4.38
Capital gains tax 1 5% proceed 3.03
Property tax 1 0.2% value of the land and building determined by the government 0.29
Vehicle registration tax 1 1% sales price and weight 0.08
Value added tax (VAT) 12 90 10% transaction value 0.00 not included
Employee paid - Social security contributions 0 Jointly 2% gross salary 0.00 withheld
Employee paid - Payroll tax on employee 12 5% - 30% gross salary 0.00 withheld
Employee paid - Health Care contributions 0 Jointly 0.5% gross salary 0.00 withheld
Stamp duty 1 Rp 6,000 fixed fee 0.00
Totals: 43 221 30.6
  • Taxes by type Answer
    Profit tax (% of profit) 16.9
    Labor tax and contributions (% of profit) 10.3
    Other taxes (% of profit) 3.3
    Answer Score
    Postfiling index (0-100) 76.5
    VAT refunds 64.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Highly likely
    Time to comply with VAT refund (hours) 18.0 64.0
    Time to obtain a VAT refund (weeks) 30.9 46.6
    Corporate income tax audits 95.4
    Does corporate income tax exist? yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 4.0 95.4
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Regional Tax Office (RTO)
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines Online/in printed publication
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 1 year

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.