Foreign Business Setup Guide
How to Start a Tech Company in Jakarta as a Japanese Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Japanese entrepreneurs opening a tech company in Jakarta, Indonesia.
Licenses Required
1
Est. Cost Range
Contact us
Timeline
11-25 days
Quick Answer
Yes, Japanese foreigners can start a tech company in Jakarta, 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 11-25 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, open
Recommended Structure
PT PMA (Foreign Investment Company) (PT PMA)
As a foreign investor opening a tech company 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).
Jakarta — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Jakarta.
Cost Adjustment
25% higher
Costs in Jakarta are approximately 25% higher than the national average due to local market conditions and regulatory requirements.
Timeline Adjustment
+10 business days
Processing times in Jakarta typically take 10 additional business days compared to the national average.
About Jakarta
Jakarta as the capital has the most complex regulatory environment. The DPMPTSP Provinsi DKI Jakarta handles local investment and licensing services with 318 service points operating 100% online. Office space costs are the highest in Indonesia, and a physical or virtual office in a recognized business zone is required for company domicile.
Additional Local Requirements
These permits and requirements apply specifically in Jakarta, in addition to national requirements.
- Jakarta Business Domicile Letter (SKDU)
- Jakarta Environmental Monitoring (UKL-UPL for medium risk)
Restrictions & Warnings
Jakarta has strict zoning - verify business activity is allowed in your area
Traffic impact assessment required for large venues
Higher minimum wage (UMR DKI Jakarta) affects staffing costs
Local Investment Authority
Authority Name
DPMPTSP Provinsi DKI Jakarta
Contact
ptsp@jakarta.go.id
The local DPMPTSP (Investment and One Stop Integrated Service) office handles regional permits alongside the national OSS system.
Required Licenses & Permits
Licenses required to operate a tech company in Jakarta 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
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Tailored to your specific business type, location, and nationality.
Step-by-Step Setup Process
The typical process for a Japanese entrepreneur setting up a tech company in Jakarta (9 steps).
Prepare Documentation
~5 daysGather your passport, proof of address, and apostilled documents. Tech companies typically have simpler documentation requirements since they are classified as low-risk businesses.
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 codes 62011 (software development) and/or 62012 (IT consulting). Tech companies can be 100% foreign-owned.
Register with Kemenkumham
~14 daysSubmit the notarial deed for legal entity approval. Your PT PMA will be established with technology-focused KBLI codes.
Obtain NIB through OSS
~1 dayRegister on OSS to get your NIB. Tech companies with KBLI 62011/62012 are typically low-risk classification, meaning NIB is often the only operational license required.
Pro tip: Tech companies are typically low-risk classification. NIB is often the only license needed. This makes tech one of the simplest business types to set up in Indonesia.
Open Corporate Bank Account
~14 daysOpen a corporate bank account in the company name. Deposit the required paid-up capital (minimum IDR 2.5 billion for PT PMA).
Pro tip: Digital banks (Jenius, Bank Jago) offer faster onboarding for tech companies. However, traditional banks (BCA, Mandiri) are still preferred for larger capital deposits.
Register for Tax (NPWP & PKP)
~7 daysObtain company NPWP and register as PKP if revenue exceeds IDR 4.8 billion annually. Tech companies may qualify for tax incentives in certain digital economy zones.
Register as Electronic System Operator (PSE)
Optional~14 daysIf your tech product or service 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. Non-compliance can result in platform blocking in Indonesia.
Apply for Work Permits (RPTKA/IMTA) & KITAS
~45 daysApply for RPTKA and IMTA for foreign tech workers through the Ministry of Manpower, then obtain KITAS stay permits through immigration.
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 — Jakarta
Approximate government and service fees adjusted for Jakarta (25% above national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 18.750.000 | Rp 43.750.000 | $1,210 - $2,823 |
| Kemenkumham Registration | Rp 1.250.000 | Rp 2.500.000 | $81 - $161 |
| NIB / OSS Registration(Free (government)) | Free | Free | Free |
| Nomor Induk Berusaha (NIB)(Free through OSS system) | Free | Free | Free |
| Work Permit (RPTKA + IMTA) | Rp 18.750.000 | Rp 31.250.000 | $1,210 - $2,016 |
| KITAS Visa | Rp 6.250.000 | Rp 15.000.000 | $403 - $968 |
| Virtual / Physical Office Address(Per year) | Rp 6.250.000 | Rp 37.500.000 | $403 - $2,419 |
| Total Estimated Range | Rp 51.250.000 | Rp 130.000.000 | $3,306 - $8,387 |
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 Japanesenational, you'll need the right visa to live and work in Indonesia while running your tech company.
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
Japanese 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 Japanese Entrepreneurs
Country-specific information for Japanese nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. Japanese nationals benefit from IJEPA trade agreement with reduced barriers. Japanese-founded businesses receive positive perception.
Estimated processing time: 25 business days
Tax Treaty Information
Japan-Indonesia EPA (Economic Partnership Agreement) provides preferential treatment. Japan taxes worldwide income. Social insurance totalization being negotiated.
Trade Agreements & Bilateral Benefits
IJEPA (Indonesia-Japan Economic Partnership Agreement) provides significant trade benefits, reduced tariffs, and simplified market access for Japanese businesses.
Common Issues for Japanese Nationals
IJEPA provides market access advantages in services, manufacturing
Japanese business culture aligns well with Indonesian formality
JETRO provides free business matching services
High demand for Japanese F&B - market is receptive
Document Requirements for Japanese Citizens
- Documents must be apostilled (Japan joined Hague Convention 2024)
- Criminal record from Prefectural Police required
- Degree certificates from Ministry of Education
Embassy & Consulate
Japanese Embassy Jakarta: Jl. M.H. Thamrin No.24. Japanese Consulate Surabaya: Jl. Sumatera 93. JETRO Jakarta office available for business advisory.
Business Culture Tips
Japanese business practices (punctuality, gift-giving, business card exchange) are well-received in Indonesia. Many Indonesians admire Japanese work ethic. Halal considerations important for F&B.
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 tech company.
Ignoring Local Permits
Jakarta may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Jakarta-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 Japanese citizen own 100% of a tech company in Jakarta?
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Yes, Japanese nationals can own 100% of a tech company in Jakarta through a PT PMA (foreign-owned limited liability company). All 2 KBLI codes required for this business type allow full foreign ownership.
What licenses do I need to start a tech company in Jakarta?
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You will need 1 license to operate a tech company in Jakarta. 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 tech company in Jakarta?
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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 tech company in Jakarta?
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The typical timeline is 11-25 business days from start to fully operational in Jakarta. 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 tech company in Indonesia?
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No, you do not need a local partner. All 2 KBLI codes for a tech company allow 100% foreign ownership, so you can establish a fully foreign-owned PT PMA in Jakarta without any Indonesian shareholders.
What visa do I need as a Japanese 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 tech company from Jakarta remotely?
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Your PT PMA must have a registered physical or virtual office address in Jakarta. 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.