Foreign Business Setup Guide
How to Start a Software Development in Yogyakarta as a Singaporean Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Singaporean entrepreneurs opening a software development in Yogyakarta, Indonesia.
Licenses Required
1
Est. Cost Range
Contact us
Timeline
6-20 days
Quick Answer
Yes, Singaporean foreigners can start a software development 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 1 licenses and can expect the process to take 6-20 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).
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 |
|---|---|---|---|
| 62011 | low | 100% | priority |
Required Licenses & Permits
Licenses required to operate a software development 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
Get Your Free Compliance Checklist
Tailored to your specific business type, location, and nationality.
Step-by-Step Setup Process
The typical process for a Singaporean entrepreneur setting up a software development in Yogyakarta (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 — 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 |
| 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 32.800.000 | Rp 83.200.000 | $2,116 - $5,368 |
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 Singaporeannational, 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
Singaporean 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 Singaporean Entrepreneurs
Country-specific information for Singaporean nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. Singaporean nationals benefit from ASEAN Business Travel Card (ABTC) for short visits. Visa-free entry for 30 days. Full ASEAN economic community benefits apply.
Estimated processing time: 20 business days
Tax Treaty Information
Singapore-Indonesia DTA active. Singapore does not tax foreign-sourced income. ASEAN framework provides preferential treatment. No capital gains tax in Singapore simplifies exit planning.
Trade Agreements & Bilateral Benefits
ASEAN Economic Community (AEC) provides full preferential treatment. Batam-Bintan-Karimun (BBK) special economic zone near Singapore. ASEAN Business Travel Card (ABTC) for simplified travel.
Common Issues for Singaporean Nationals
ASEAN membership provides significant advantages - tariff reductions, easier permits
Singapore-incorporated holding structures common for Indonesian subsidiaries
Proximity enables frequent travel - no visa needed for short visits
BIA (Batam-Bintan-Karimun) special economic zone offers additional benefits near Singapore
Document Requirements for Singaporean Citizens
- Documents authenticated by Singapore Academy of Law
- Criminal record from Singapore Police Force
- Singapore company registration with ACRA if using holding structure
Embassy & Consulate
Singapore Embassy Jakarta: Jl. H.R. Rasuna Said Kav. X/4. Singapore Business Federation has Indonesia desk.
Business Culture Tips
Singaporeans adapt easily to Indonesian business culture due to shared Malay heritage and language similarities. English and Mandarin widely useful. Short travel distance enables frequent oversight.
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
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 Singaporean citizen own 100% of a software development in Yogyakarta?
▾
Yes, Singaporean nationals can own 100% of a software development 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 software development in Yogyakarta?
▾
You will need 1 license to operate a software development in Yogyakarta. 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 Yogyakarta?
▾
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 Yogyakarta?
▾
The typical timeline is 6-20 business days from start to fully operational in Yogyakarta. 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?
▾
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 Yogyakarta without any Indonesian shareholders.
What visa do I need as a Singaporean 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 software development 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 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.
Ready to start your software development in Yogyakarta?
Get a personalized compliance dashboard tracking every license, permit, and deadline for your specific business setup.
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.