Business in Indonesia: What is there to know?

Business in Indonesia has many options to choose from. The country of roughly 270 million people is well known for its robust natural resources and relatively low-cost labour. According to Statista, the labour productivity per hour rate in Indonesia is 14 dollars. This number is a result of a survey from 2000 to 2018.

Moreover, with the capital city being a metropolitan city, it poses a potential location for foreign businesses to expand their market. Jakarta itself is home to an estimated 10.5 million people. The city is also home to some Southeast Asian giant online platform companies. For instance, Tokopedia, Gojek, Traveloka, and J&T Cash.

Thus, it is easy to see the charms of Indonesia in terms of business possibilities. From more conservative businesses to internet-based Startup companies, everything is available in Indonesia. Moreover, modern office facilities that are both economical and practical are also available. Those are MESO Virtual Office and Serviced Office.

Business in Indonesia and Culture

Business in Indonesia needs to understand certain things about the country to ensure smooth operations. As a country with various cultures and ethnicities, there are a lot of customs that entrepreneurs need to be aware of. These cultures and customs play an important part in sealing business deals. The importance of this knowledge applies to both foreign nationals in Indonesia and Indonesian entrepreneurs.

One of the most common mistakes that people make is to address everyone in a certain way of greeting. It is always recommendable to use the basic and formal greeting of the language than trying to utilize specific ways of greeting. This is unless the entrepreneur is familiar with the customs of the interlocutor. Always try to avoid starting on the wrong foot.

Moreover, entrepreneurs must also be aware of local celebrations and religious affairs. Indonesia acknowledges five official religions and each religion has their national holidays. Be sure to understand the culture of each religion as it may play an important factor in negotiation and business partnership. Furthermore, this knowledge may prove to be useful when dealing with the Indonesian workforce as well.

Setting up Company in Indonesia

To set up a company, entrepreneurs must find a trustable service provider in Indonesia. One of the options is MESO Serviced and Virtual Office. MESO can assist in PMA, PT, CV and UMKM establishments. Not only that, but there are also business domicile provisions in the form of a virtual office, shared office, and serviced office. Many entrepreneurs both of foreign and local origin benefits from utilizing MESO products and services.

Entrepreneurs must be aware that the providers can offer advice and recommendations. Therefore, make use of the service and prepare your questions beforehand to make the process efficient. Once all questions are answered and the required documents are in order, the entrepreneurs must prepare the funds. The local government needs to know that foreign companies are serious about investing. If they cannot prove that they have the necessary fund to operate their business, the government will not approve any business licenses or permits.

Next, entrepreneurs also need to decide whether they need a physical office or not. In most cases, a physical office is preferable as it provides a private working space. Having a physical office also shows the government that the company is serious and available to find. Thus, it will be easier to get permits and licenses. On the other hand, if the entrepreneur only needs a mailing address then a virtual office would suffice.

For more information on company establishments, virtual offices, and serviced offices, visit or contact us via our Live Chat at 0812 1315 4189 (Whatsapp) or send us an email at