Foreign Business Setup Guide
How to Start an Import/Export Business in Yogyakarta as a Chinese Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Chinese entrepreneurs opening a import/export business in Yogyakarta, Indonesia.
Licenses Required
2
Est. Cost Range
$52 - $258
Timeline
7-41 days
Quick Answer
Yes, Chinese foreigners can start a import/export business in Yogyakarta, Indonesia. This business activity is open to foreign investment with up to 100% foreign ownership through a PT PMA (foreign-owned limited liability company).
You will need approximately 2 licenses and can expect the process to take 7-41 business days. The estimated government and service fees range from Rp 800.000 to Rp 4.000.000.
Foreign Ownership Rules
Foreign Ownership
Up to 100%
DNIB Status
open
Recommended Structure
PT PMA (Foreign Investment Company) (PT PMA)
As a foreign investor opening a import/export business in Indonesia, you will typically establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a foreign-owned limited liability company. This is the standard legal entity for foreigners conducting business activities in Indonesia.
Minimum investment capital: Rp 10.000.000.000 ($645,161).
Yogyakarta — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Yogyakarta.
Cost Adjustment
20% lower
Costs in Yogyakarta are approximately 20% lower than the national average due to local market conditions and regulatory requirements.
Timeline Adjustment
+5 business days
Processing times in Yogyakarta typically take 5 additional business days compared to the national average.
About Yogyakarta
Yogyakarta as a Special Region (DIY) has unique regulations governed by the Sultanate. Land ownership is restricted under Sultanate rules - the 1975 vice-governor instruction prohibits land ownership by non-native Indonesians, and Sultan Ground (Tanah SG) can only be leased. Lower costs but limited commercial infrastructure outside the city center. Cultural heritage requirements can add time for businesses in the Malioboro/Keraton area.
Additional Local Requirements
These permits and requirements apply specifically in Yogyakarta, in addition to national requirements.
- Special Region cultural impact assessment for businesses in heritage zones
Restrictions & Warnings
Yogyakarta Special Region has unique land ownership rules - foreigners cannot own land directly
Businesses near Keraton (Sultan Palace) require cultural preservation approval
Sultanate ground lease (Sultan Ground) applies to most land - review carefully with a local lawyer
Local Investment Authority
Authority Name
DPMPTSP DIY
Contact
dpmptsp@jogjaprov.go.id
The local DPMPTSP (Investment and One Stop Integrated Service) office handles regional permits alongside the national OSS system.
Required KBLI Codes
KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes identify your business activities in Indonesia's licensing system.
| Code | Risk Level | Foreign Ownership | DNIB Status |
|---|---|---|---|
| 46100 | medium | 100% | open |
Required Licenses & Permits
Licenses required to operate a import/export business in Yogyakarta as a foreign-owned business.
Nomor Induk Berusaha(NIB)
business_id
▾
Nomor Induk Berusaha(NIB)
business_id
Estimated Cost
Free
Free through OSS system
Processing Time
1 business days
Validity
Varies
Izin Usaha Perdagangan (Trading License)
sector_specific
▾
Izin Usaha Perdagangan (Trading License)
sector_specific
Estimated Cost
Rp 1.000.000 - Rp 5.000.000
Trading license through OSS. Cost varies by trade scale.
Processing Time
7 business days
Validity
60 months (renewable)
Get Your Free Compliance Checklist
Tailored to your specific business type, location, and nationality.
Step-by-Step Setup Process
The typical process for a Chinese entrepreneur setting up a import/export business in Yogyakarta (11 steps).
Prepare Documentation
~7 daysGather your passport, proof of address, apostilled documents, and prepare a detailed trading business plan including product categories, target markets, and trade volume projections.
Reserve Company Name via AHU Online
~3 daysSubmit 3 company name choices to Kemenkumham through the AHU Online system. Trading company names must be in Bahasa Indonesia with at least 3 words.
Draft Deed of Establishment with Notary
~7 daysWork with a notary to prepare articles of association with KBLI code 46100 (wholesale trade). Import-export businesses have specific capital requirements and must clearly define trading activities.
Register with Kemenkumham
~14 daysSubmit the notarial deed for legal entity approval. Your PT PMA will be registered with trade-specific KBLI codes.
Obtain NIB through OSS
~1 dayRegister on OSS to get your NIB. Select KBLI code 46100 for wholesale/import-export trade. Trading businesses are typically classified as medium-to-high risk.
Apply for API (Importer Identification Number)
~14 daysObtain your Angka Pengenal Importir through OSS. Choose API-U (Umum/General) for general trading companies or API-P (Produsen/Producer) if importing raw materials for manufacturing.
Pro tip: API-U for general trading, API-P for producer importers. Choose based on business model. API-U allows trading imported goods; API-P restricts imports to own production use.
Apply for NPIK (Product-Specific Import License)
~14 daysIf importing regulated product categories, obtain the Nomor Pengenal Importir Khusus. Required for electronics, textiles, footwear, toys, and food/beverages.
Pro tip: Required for specific product categories. Check your HS code restrictions before importing. Not all products need NPIK - check the latest Permendag for your product category.
Register with Customs (DJBC)
~7 daysRegister your company with Direktorat Jenderal Bea dan Cukai (Customs and Excise). Obtain your customs access code and set up electronic customs declaration (PDE) capabilities.
Open Corporate Bank Account with Trade Finance
~14 daysOpen a corporate bank account at a bank with strong trade finance capabilities (BCA, Mandiri, BNI). Set up Letter of Credit (L/C), trade payment, and foreign currency transaction facilities.
Register for Tax (NPWP & PKP)
~7 daysObtain company NPWP and register as PKP. Import-export businesses must understand import duties, VAT on imports (11%), and income tax prepayments (PPh 22) on imported goods.
Apply for Work Permits (RPTKA/IMTA) & KITAS
~45 daysApply for RPTKA and IMTA through the Ministry of Manpower, then obtain KITAS stay permits through immigration.
Estimated Total Timeline
133 days(5 months)
Based on mandatory steps processed sequentially. Actual timeline may vary depending on government processing speeds and document readiness. Some steps can run in parallel.
Estimated Costs Breakdown — Yogyakarta
Approximate government and service fees adjusted for Yogyakarta (20% below national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 12.000.000 | Rp 28.000.000 | $774 - $1,806 |
| Kemenkumham Registration | Rp 800.000 | Rp 1.600.000 | $52 - $103 |
| NIB / OSS Registration(Free (government)) | Free | Free | Free |
| Nomor Induk Berusaha (NIB)(Free through OSS system) | Free | Free | Free |
| Izin Usaha Perdagangan (Trading License)(Trading license through OSS. Cost varies by trade scale.) | Rp 800.000 | Rp 4.000.000 | $52 - $258 |
| Work Permit (RPTKA + IMTA) | Rp 12.000.000 | Rp 20.000.000 | $774 - $1,290 |
| KITAS Visa | Rp 4.000.000 | Rp 9.600.000 | $258 - $619 |
| Virtual / Physical Office Address(Per year) | Rp 4.000.000 | Rp 24.000.000 | $258 - $1,548 |
| Total Estimated Range | Rp 33.600.000 | Rp 87.200.000 | $2,168 - $5,626 |
Note: Minimum investment capital for a PT PMA is Rp 10.000.000.000 ($645,161). This is separate from the setup costs above.
Visa & Work Permit Requirements
As a Chinesenational, you'll need the right visa to live and work in Indonesia while running your import/export business.
Recommended: Investor
KITAS Investor
- Duration: 24 months
- Estimated cost: $1,500
- Company sponsorship required
Alternative: Work Permit
KITAS Investor
- Duration: 24 months
- Min. salary: $1,200/month minimum
- RPTKA approval needed first
Chinese citizens can enter Indonesia visa-free for up to 30 days or on a Visa on Arrival (VoA) for tourism. However, to work and operate a business, you must obtain the appropriate stay permit (KITAS/KITAP).
Guidance for Chinese Entrepreneurs
Country-specific information for Chinese nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. Chinese nationals benefit from ASEAN+3 business facilitation. B211A available with sponsor.
Estimated processing time: 40 business days
Tax Treaty Information
China-Indonesia DTA active. China taxes worldwide income for residents. Transfer pricing scrutiny is high for Chinese-Indonesian business structures.
Trade Agreements & Bilateral Benefits
ASEAN-China Free Trade Area (ACFTA) provides tariff reductions. ASEAN+3 business facilitation framework applies.
Common Issues for Chinese Nationals
Language barrier is common - hire bilingual Indonesian-Chinese staff
Capital transfer from China subject to SAFE regulations (max $50,000/year for individuals)
Anti-Chinese sentiment exists in some regions - use local business partner
WeChat Pay/Alipay not widely accepted - need Indonesian banking
Document Requirements for Chinese Citizens
- Documents must be notarized by Chinese notary public and authenticated by Chinese Ministry of Foreign Affairs
- Criminal background check from local Public Security Bureau
- Education certificates must be verified by CDGDC
Embassy & Consulate
Chinese Embassy Jakarta: Jl. Mega Kuningan No.2. Chinese Consulates in Surabaya, Medan, and Denpasar.
Business Culture Tips
Indonesia has a significant ethnic Chinese population. Mandarin-speaking staff are available in major cities. Business dinners are common for relationship building. Gift-giving customs are similar.
Common Pitfalls & Tips
Operating on a Tourist Visa
Many foreigners try to start a business while on a tourist visa or VoA. This is illegal and can result in deportation and blacklisting. Always obtain proper business documentation first.
Using Nominee Structures Illegally
While nominee arrangements are common, undisclosed nominee structures violate Indonesian law. If foreign ownership is restricted, work with a qualified lawyer to find compliant alternatives.
Underestimating Capital Requirements
PT PMA companies have minimum investment and paid-up capital requirements. Ensure you meet these thresholds before starting the registration process for your import/export business.
Ignoring Local Permits
Yogyakarta may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Yogyakarta-specific requirements.
Missing Tax Obligations
Indonesia has strict tax reporting requirements including monthly VAT returns, employee tax withholding (PPh 21), and annual corporate income tax. Non-compliance leads to significant penalties.
Frequently Asked Questions
Can a Chinese citizen own 100% of a import/export business in Yogyakarta?
▾
Yes, Chinese nationals can own 100% of a import/export business in Yogyakarta through a PT PMA (foreign-owned limited liability company). All 1 KBLI code required for this business type allow full foreign ownership.
What licenses do I need to start a import/export business in Yogyakarta?
▾
You will need 2 licenses to operate a import/export business in Yogyakarta. These include: NIB, Izin Usaha Perdagangan (Trading License). All licenses are obtained through Indonesia's OSS (Online Single Submission) system and sector-specific authorities.
How much does it cost to set up a import/export business in Yogyakarta?
▾
Based on the 2 required licenses, government and service fees for a import/export business in Yogyakarta range from Rp 800.000 to Rp 4.000.000 (approximately $52 to $258). This excludes the minimum investment capital of Rp 10 billion required for PT PMA companies, office rental, and ongoing operational costs.
How long does it take to set up a import/export business in Yogyakarta?
▾
The typical timeline is 7-41 business days from start to fully operational in Yogyakarta. This includes company registration, obtaining all 2 required licenses, and visa processing. Working with an experienced agent can help run some steps in parallel and reduce the total time.
Do I need a local partner to start a import/export business in Indonesia?
▾
No, you do not need a local partner. All 1 KBLI code for a import/export business allow 100% foreign ownership, so you can establish a fully foreign-owned PT PMA in Yogyakarta without any Indonesian shareholders.
What visa do I need as a Chinese to run a business in Indonesia?
▾
You will need either an Investor KITAS (stay permit) or a Work KITAS, sponsored by your Indonesian company. Tourist visas and Visa on Arrival do not permit business activities. The Investor KITAS is typically recommended for business owners, while the Work KITAS is for employees of the company.
Can I operate my import/export business from Yogyakarta remotely?
▾
Your PT PMA must have a registered physical or virtual office address in Yogyakarta. You can manage operations remotely as long as you maintain compliance with tax and reporting obligations, including monthly VAT returns and quarterly LKPM (investment activity reports). Directors must attend certain regulatory meetings in person.
What are the ongoing compliance requirements?
▾
You must file monthly tax returns (VAT, employee tax), submit an annual corporate tax return, renew applicable licenses (you have 2 to track), maintain LKPM (investment activity reports) quarterly, and keep company records with your notary. Non-compliance can result in license revocation and penalties.
Data verified against official Indonesian government sources
Every data point is marked with its verification status. We source from OSS.go.id, BKPM, Imigrasi.go.id, and Peraturan.go.id. This is informational guidance — always confirm with a licensed Indonesian lawyer for your specific situation.
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Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or professional advice. Regulations in Indonesia change frequently. Always consult with a qualified Indonesian lawyer and licensed tax consultant before making business decisions. Information on this page was last reviewed in March 2025 and may not reflect the most current regulations. IndonesiaCompliance is not a law firm and does not provide legal services.