Indonesia Fact Sheet

  • IndonesiaIndonesia

About

Indonesia is the largest economy in Southeast Asia and the fourth most populous country in the world. With over 17,000 islands, it is the world's largest island country. Indonesia's natural resources include oil, natural gas, coal and the forest – key contributors to its economy. Thanks in part to high commodity prices and sound economic policies, the country has enjoyed steady growth over the past two decades, resulting in a burgeoning middle-class.

267.6 mil

267.6 mil

Population size

30.5 years

30.5 years

Median age

Jakarta

Jakarta

Capital

Indonesian rupiah (IDR)

Indonesian rupiah (IDR)

Currency unit

25.4%

25.4%

Internet penetration rate

176%

176%

Mobile penetration rate

Economy


US$4,465

2020 estimated
GDP per capita

0.5% | 8.2%

Real GDP growth projection

(Annual per cent change, 
2020 & 2021)


BBB

S&P global ratings

Labour


134 mil

Total labour force (2019)


95.7%

Literacy rate (2018)

US$7.80

Average daily wage for
manufacturing employee
(2016)

Key Sectors

  • Agriculture
  • Digital industry
  • Energy
  • Infrastructure
  • Lifestyle
  • Manufacturing
  • Tourism

Tax Profile


22%

Corporate tax


65

Number of DTAs


20%

Dividend withholding tax


20%

Interest withholding tax


25%

Capital gains tax


Regulated

FX control

Trade

Exports
US$167 bil
Imports
US$171 bil
  1. China
  2. United States
  3. Japan
  4. Singapore
  5. India
  1. China
  2. Singapore
  3. Japan
  4. Thailand
  5. United States


Based on 2019 data

Others

Economic zones

Economic zones

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Government agencies and business chambers

Government agencies and business chambers

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Key government initiatives and incentives

Key government initiatives and incentives

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  • 48 Industrial Parks
  • 12 Special Economic Zones (SEZs)
  • 4 Free Trade Zones (FTZ)
  • 10 Tourism Zones

In 2018, the Indonesian government launched the integrated Online Single Submission (OSS) licensing system to simplify the process of registering for a business in Indonesia.

 

Import duty facility

  • Two years' import duty exemption, or directly apply for four years for companies using locally produced machines (minimum 30 per cent).
  • Applies to industries that produce goods and/or services, including tourism and culture, public transportation, public health services, mining, construction, telecommunications, ports.

 

Tax allowance

  • Deduction of 30 per cent of total investment value, carried over six years (5 per cent per year).
  • Applies to 183 business fields.

 

Tax holiday

  • 100 per cent CIT reduction for five to 20 years.
  • Minimum investment value of IDR 500 billion.
  • Applies to 18 pioneer industries.

 

Mini tax holiday

  • 50 per cent CIT reduction for five years.
  • Minimum investment value of IDR 100 billion up to under IDR 500 billion for pioneer industries.

 

Super deduction tax

  • 200 per cent deduction for HR development and vocational training.
  • 300 per cent deduction for R&D.
  • 60 per cent incentives of investment allowance for labour-intensive industries.

 

 

Sources: UOB Global Economics & Markets Research, World Economic Outlook (October 2019 and April 2020), World Bank, UNESCO Institute of Statistics, Asian Development Bank, BKPM

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.

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