Foreign Business Setup Guide
How to Start a Travel Agency in Yogyakarta as a Japanese Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Japanese entrepreneurs opening a travel agency in Yogyakarta, Indonesia.
Licenses Required
2
Est. Cost Range
$103 - $516
Timeline
7-41 days
Quick Answer
Yes, Japanese foreigners can start a travel agency 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 1.600.000 to Rp 8.000.000.
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 travel agency 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 Licenses & Permits
Licenses required to operate a travel agency 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
Tanda Daftar Usaha Pariwisata (Tourism Business Registration)(TDUP)
sector_specific
▾
Tanda Daftar Usaha Pariwisata (Tourism Business Registration)(TDUP)
sector_specific
Estimated Cost
Rp 2.000.000 - Rp 10.000.000
Required for hotels, restaurants in tourist areas, tour operators
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 Japanese entrepreneur setting up a travel agency in Yogyakarta (10 steps).
Prepare Documentation
~7 daysGather your passport, proof of address, apostilled documents, and prepare a travel business plan including tour packages, partnerships with local operators, and marketing strategy.
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 79110 (travel agency) and/or 79120 (tour operator). Define your tourism service scope clearly.
Register with Kemenkumham
~14 daysSubmit the notarial deed for legal entity approval. Your PT PMA will be registered with tourism-specific KBLI codes.
Obtain NIB through OSS
~1 dayRegister on OSS to get your NIB. Select KBLI codes 79110/79120 for travel agency and tour operator services.
Apply for TDUP (Tourism Business License)
~14 daysObtain the Tanda Daftar Usaha Pariwisata from the local Dinas Pariwisata (Tourism Office). This is the primary operating license for travel agencies in Indonesia.
Register with ASITA (Travel Agent Association)
Optional~7 daysJoin the Association of the Indonesian Tours and Travel Agencies (ASITA). While not legally mandatory, membership is strongly recommended for credibility and networking.
Pro tip: ASITA membership provides credibility and networking with the Indonesian tourism industry. It also gives access to industry events, government liaison, and partner referrals.
Open Corporate Bank Account
~14 daysOpen a corporate bank account and deposit the required paid-up capital. Travel agencies should set up multi-currency capabilities for handling international bookings.
Register for Tax (NPWP & PKP)
~7 daysObtain company NPWP and register as PKP. Travel agencies have specific VAT rules - domestic tours are subject to 11% VAT, while international tour packages may have different treatment.
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
112 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 |
| Tanda Daftar Usaha Pariwisata (Tourism Business Registration) (TDUP)(Required for hotels, restaurants in tourist areas, tour operators) | Rp 1.600.000 | Rp 8.000.000 | $103 - $516 |
| 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 34.400.000 | Rp 91.200.000 | $2,219 - $5,884 |
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 travel agency.
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 travel agency.
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 Japanese citizen own 100% of a travel agency in Yogyakarta?
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Yes, Japanese nationals can own 100% of a travel agency in Yogyakarta 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 travel agency in Yogyakarta?
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You will need 2 licenses to operate a travel agency in Yogyakarta. These include: NIB, TDUP. 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 travel agency in Yogyakarta?
▾
Based on the 2 required licenses, government and service fees for a travel agency in Yogyakarta range from Rp 1.600.000 to Rp 8.000.000 (approximately $103 to $516). 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 travel agency in Yogyakarta?
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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 travel agency in Indonesia?
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No, you do not need a local partner. All 2 KBLI codes for a travel agency 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 Japanese 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 travel agency from Yogyakarta remotely?
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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.