Foreign Business Setup Guide
How to Start a Software Development in Surabaya as an Australian Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Australian entrepreneurs opening a software development in Surabaya, Indonesia.
Licenses Required
1
Est. Cost Range
Contact us
Timeline
1-15 days
Quick Answer
Yes, Australian foreigners can start a software development in Surabaya, 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 1 licenses and can expect the process to take 1-15 business days. The estimated government and service fees range from Rp 10,000,000 to Rp 50,000,000.
Foreign Ownership Rules
Foreign Ownership
Up to 100%
DNIB Status
priority
Recommended Structure
PT PMA (Foreign Investment Company) (PT PMA)
As a foreign investor opening a software development 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).
Surabaya — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Surabaya.
Cost Adjustment
10% lower
Costs in Surabaya are approximately 10% lower than the national average due to local market conditions and regulatory requirements.
About Surabaya
Surabaya as East Java's capital offers streamlined processing. The local investment office is proactive with foreign investors. Lower operational costs than Jakarta or Bali. Surabaya has Indonesia's second-largest port, making it ideal for import/export businesses. The local DPMPTSP is known for relatively efficient processing.
Additional Local Requirements
These permits and requirements apply specifically in Surabaya, in addition to national requirements.
- East Java Provincial Business Registration
Restrictions & Warnings
Industrial zone businesses require Surabaya Environmental Agency clearance
Certain areas near military installations have restricted business activities
Local Investment Authority
Authority Name
DPMPTSP Kota Surabaya
Contact
dpmptsp@surabaya.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 |
|---|---|---|---|
| 62011 | low | 100% | priority |
Required Licenses & Permits
Licenses required to operate a software development in Surabaya as a foreign-owned business.
Nomor Induk Berusaha(NIB)
business_id
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Nomor Induk Berusaha(NIB)
business_id
Estimated Cost
Free
Free through OSS system
Processing Time
1 business days
Validity
Varies
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Tailored to your specific business type, location, and nationality.
Step-by-Step Setup Process
The typical process for a Australian entrepreneur setting up a software development in Surabaya (9 steps).
Prepare Documentation
~5 daysGather your passport, proof of address, and apostilled documents. Software companies are classified as low-risk and require minimal documentation beyond standard company formation papers.
Reserve Company Name via AHU Online
~3 daysSubmit 3 company name choices to Kemenkumham through the AHU Online system. 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 62011 (custom software development). Software development is 100% open to foreign ownership.
Register with Kemenkumham
~14 daysSubmit the notarial deed for legal entity approval. Your PT PMA will be registered under software development KBLI codes.
Obtain NIB through OSS
~1 dayRegister on OSS to get your NIB. Software development under KBLI 62011 is low-risk, making NIB effectively your only required operational license.
Pro tip: Tech companies are typically low-risk classification. NIB is often the only license needed. This makes software development one of the fastest business types to get operational.
Open Corporate Bank Account
~14 daysOpen a corporate bank account in the company name and deposit the required paid-up capital.
Pro tip: Digital banks (Jenius, Bank Jago) offer faster onboarding for tech companies. However, traditional banks (BCA, Mandiri) provide better wire transfer support for international clients.
Register for Tax (NPWP & PKP)
~7 daysObtain your company NPWP and register as PKP if projected annual revenue exceeds IDR 4.8 billion. Software exports may qualify for 0% VAT on exported services.
Register as Electronic System Operator (PSE)
Optional~14 daysIf your software processes Indonesian user data, register as a Private Electronic System Operator (PSE Lingkup Privat) through Kominfo.
Pro tip: Required if your tech product processes Indonesian user data. Register through Kominfo. Applies to SaaS platforms, mobile apps, and any software handling Indonesian user information.
Apply for Work Permits (RPTKA/IMTA) & KITAS
~45 daysApply for RPTKA and IMTA for foreign developers through the Ministry of Manpower. Indonesia tech sector has streamlined processes for skilled IT workers.
Estimated Total Timeline
96 days(4 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 — Surabaya
Approximate government and service fees adjusted for Surabaya (10% below national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 13.500.000 | Rp 31.500.000 | $871 - $2,032 |
| Kemenkumham Registration | Rp 900.000 | Rp 1.800.000 | $58 - $116 |
| NIB / OSS Registration(Free (government)) | Free | Free | Free |
| Nomor Induk Berusaha (NIB)(Free through OSS system) | Free | Free | Free |
| Work Permit (RPTKA + IMTA) | Rp 13.500.000 | Rp 22.500.000 | $871 - $1,452 |
| KITAS Visa | Rp 4.500.000 | Rp 10.800.000 | $290 - $697 |
| Virtual / Physical Office Address(Per year) | Rp 4.500.000 | Rp 27.000.000 | $290 - $1,742 |
| Total Estimated Range | Rp 36.900.000 | Rp 93.600.000 | $2,381 - $6,039 |
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 Australiannational, you'll need the right visa to live and work in Indonesia while running your software development.
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
Australian 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 Australian Entrepreneurs
Country-specific information for Australian nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS recommended. Australia has streamlined processing under IA-CEPA (Indonesia-Australia trade agreement). B211A for exploration phase.
Estimated processing time: 30 business days
Tax Treaty Information
Indonesia-Australia Tax Treaty (DTA) in effect since 1992. Modified by OECD Multilateral Instrument (MLI) effective 2019. Australia taxes worldwide income. Foreign Income Tax Offset available for Indonesian taxes paid.
Trade Agreements & Bilateral Benefits
IA-CEPA (Indonesia-Australia Comprehensive Economic Partnership Agreement) provides preferential market access and reduced barriers for Australian businesses.
Common Issues for Australian Nationals
IA-CEPA agreement provides preferential market access for certain sectors
Australian superannuation has no totalization with Indonesia
Bali is most popular location - competition is high
Dual taxation on rental income common issue
Document Requirements for Australian Citizens
- Documents must be apostilled (Hague Convention)
- Australian Federal Police check required for KITAS
- DFAT can authenticate documents for Indonesian use
Embassy & Consulate
Australian Embassy Jakarta: Jl. Patra Kuningan Raya Kav 1-4, Jakarta. Australian Consulate Bali: Jl. Tantular No.32, Renon, Denpasar.
Business Culture Tips
Australians are perceived positively in Bali. Direct communication style should be softened for Indonesian business culture. "Rubber time" (jam karet) means meetings may not start punctually.
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 software development.
Ignoring Local Permits
Surabaya may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Surabaya-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 Australian citizen own 100% of a software development in Surabaya?
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Yes, Australian nationals can own 100% of a software development in Surabaya 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 software development in Surabaya?
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You will need 1 license to operate a software development in Surabaya. These include: NIB. 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 software development in Surabaya?
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Costs vary depending on the specific licenses required and whether you use an agency. Budget approximately Rp 10,000,000 to Rp 50,000,000 for government fees and legal services, plus the Rp 10 billion minimum investment capital for a PT PMA.
How long does it take to set up a software development in Surabaya?
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The typical timeline is 1-15 business days from start to fully operational in Surabaya. This includes company registration, obtaining all 1 required license, 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 software development in Indonesia?
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No, you do not need a local partner. All 1 KBLI code for a software development allow 100% foreign ownership, so you can establish a fully foreign-owned PT PMA in Surabaya without any Indonesian shareholders.
What visa do I need as an Australian to run a business in Indonesia?
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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 software development from Surabaya remotely?
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Your PT PMA must have a registered physical or virtual office address in Surabaya. 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?
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You must file monthly tax returns (VAT, employee tax), submit an annual corporate tax return, renew applicable licenses (you have 1 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.