Startup Company in Indonesia is generally defined as a company in the first stages of operations. Startups are commonly founded by one or more entrepreneurs who want to develop products or services which they believe can solve an issue or fulfill a demand in the location they are based in. These days, startups are also commonly associated with advanced usage of technology in their operations, more specifically the use of the internet as a means of distributing their products or services to their target market. 

Startup Company in Indonesia

In Indonesia, startups have emerged as the biggest players and it’s not an overstatement to call them the anchor of the country’s economy. This is due to the fact that currently, Indonesia has 9 startups successfully reaching unicorn status (valued above USD 1 billion) and 2 startups reaching decacorn status (valued above USD 10 billion). This means that Indonesian startups have managed to put the country on the map and go toe to toe with the biggest startups in the world. 

For foreign investors, establishing a startup in Indonesia is definitely an exciting prospect. In this article, we will explain the reasons why you must establish a startup in Indonesia.

Why Establish Startups in Indonesia

1. Size of Economy

Indonesia’s internet economy is currently thriving, growing with an average rate of 49% since the year 2015. These numbers have positioned the country as the biggest internet economy in Southeast Asia. It is projected that the valuation of Indonesia’s internet economy will pass USD 130 billion by 2025. Among the big players in this sector are e-commerce, online travel, online media, and ride-hailing. The glooming effects of the pandemic doesn’t seem to affect the Indonesian startup landscape. Investors are still quite comfortable injecting their funds to Indonesian startups.

According to DailySocial, there were 71 funding transactions involving startups in Indonesia during the second quarter of 2022, with a valuation estimated to exceed USD 1,4 billion. In terms of the nominal, it recorded an USD 300 million increase from the previous quarter. Furthermore, it is also reported that around 17 Indonesian startups received more than USD 50 million funding during this period. These numbers highlight the immense potential of the Indonesian startup ecosystem

2. Amount of Internet Users

According to a 2022 report by DS Innovate, Indonesia boasts an amount of 204,7 million active Internet users. That accounts for 73.7% of the population. Considering the fact that almost every startup is counting on the usage of the internet to advance their operations, it is no wonder that Indonesia emerged as a huge market for them. By investing in Indonesia, they have the opportunity to market their products and services to the large majority of the population.

According to the e-Conomy SEA 201 Report, the Indonesian e-commerce market represents nearly 50% of the region’s total market size.

3. Government Assistance

When you’re establishing a startup in a foreign company, the local government will always be an important stakeholder. Upon your startup’s inception, you must be sure to follow all the laws and regulations in regards to company establishment. In Indonesia, the government does not just sit back and watch, but rather offers support for emerging startups. In the first parts of this article, we mentioned the amount of decacorns and unicorns in Indonesia. These details were actually brought up by the President of Indonesia Joko Widodo in his annual speech in front of the People’s Consultative Assembly. In his speech, the President also reaffirmed his government’s commitment to fully support up and coming technology-based startups.

Through numerous Ministries, the Indonesian government also made real efforts and programs in support of startups in the country. For example, the Ministry of Communications and Informatics facilitated early stage startups with incubator and accelerator program which aimed to help the companies get on their feet. The Ministry of Research and Technology offered funding and special coaching for startups in relation to the use of technology. Indonesian governmental organizations such as the Financial Services Authority (OJK) is also around to oversee the operations of startups in P2P lending, crowdfunding, insurance technology etc. 

4. Plenty of Issues Need Solving

Around the world, startups are hugely successful because they typically serve one purpose: to solve real life problems. In Indonesia, that is also the case. Ride-hailing startups like Gojek were built upon the people’s need of vehicle options that can be summoned anytime and anywhere. That being said, it is fair to conclude that the key for successful startups is to know exactly what problem they are trying to solve. In Indonesia, many startups are already established to solve recurring issues but problems still persist. 

One example is road traffic. In Indonesia, especially in Jakarta, traffic jams have become a common sight that has been going on for years with seemingly no solution in sight. On the way to and from work, the traffic will be so jammed that it’s taking hours off people’s lives on the road. It also has a direct knock-on effect on the productivity of the people.

Another huge problem is misinformation. In the era of technological advancement, information spreads at such a quick rate that it is no longer feasible to differentiate truth from lies. Misinformation, also commonly known as hoax, has dangerous implications because it could spark unwanted conflicts among groups in the society. Furthermore, the country is also facing serious data breach issues which are discovered to have sold precious consumer data in exchange for money.

All these problems have one thing in common:  there’s no existing startup in Indonesia that has the capabilities to tackle and solve these problems. This represents demands that are waiting to be met. For prospective startups still in ideation stage, these aforementioned problems could be the centerpiece for the start of their endeavors. 

5. Relatively Low Cost of Living

As a lower-middle income country, the cost of living in Indonesia is substantially lower than Western countries. Living in Jakarta, the capital city, is 60% cheaper than living in New York or London, 40% cheaper than living in Berlin, and 50% cheaper than living in Melbourne. Compared to its neighbors, living in Jakarta is over 50% cheaper than living in Singapore. You can find accommodation at very cheap prices, apartments and hostels prices vary and lots of options are at your disposal, especially with the emergence of accommodation mobile applications. Eating out is also very affordable. With less than 10 USD, you can easily afford 3 meals per day.

In terms of establishing a startup, the usual foreign company establishment charges a fee of around 675 USD, all-in. In terms of workplace, the common choice is to rent separate office spaces in buildings. Recently, the emerging trend is to use co-working spaces. Using co-working space is more cost-effective than traditional office spaces. For investors, cost of living is also an important thing to consider. With significantly lower cost of living, you can allocate more of your funds for your investment. 

6. Ease of Hiring Talents

With the country expected to become the biggest online economy in the region by 2025, the demand for high quality talents in the startup industry has risen higher than ever. New and emerging fields like AI, DevOps, data and programming are becoming popular discourse and young talents with these skills on their repertoire are also increasing.

If you establish your startup in Indonesia, you will have the opportunity to recruit local talents with soft and hard skills in fields like e-commerce, data analysis, fintech, and machine learning. Furthermore, it is worth noting that top universities in Indonesia are now implementing the Kampus Merdeka program. In this program, final year students have opportunity to do an internship that relates with their majors. Many of these students chose to do their internships in startups. With this type of program, it is hoped that the best young talents in Indonesia will be accustomed to the work culture of highly-performing startups. After they graduate, they could potentially go on to work at your startup and perform at a high level. 

How can Double M help?

If you have decided to establish a startup in Indonesia, there are multiple procedures that you must go through. At Double M, we offer all the services you could possibly need starting from company establishment, obtaining work permits, recruiting the best talents and many more.

As the world’s fourth largest population, Indonesia is a potential market for foreign investors to dive in. According to TradingEconomics, foreign investment in Indonesia (excluding investment in banking and oil and gas sectors) jumped to an amount of 39.7% year-on-year to a record amount of IDR 163.2 trillion (USD 10.89 billion) up until the second-quarter period of 2022. This is a 31.8% growth from the previous period and recorded as the greatest rise in the past decade. This is a phenomenal achievement considering the fact that the country and the rest of the world are still recovering from the effects of the Covid-19 pandemic.

Why Invest in Indonesia?

As a foreign investor in Indonesia, deciding where to invest plays a big part in your success. Pick a wrong place, and you gain the risk of investment loss. Pick the right one, and your business could exponentially grow larger and larger, thus giving you the platform to expand even more. To further convince you to invest in Indonesia, here are our picks of the 6 reasons why Investors must choose Indonesia:

1. Economic State

Indonesia’s economy is the largest in Southeast Asia and one of the most emerging market economies in the world. A proud member of the G20, Indonesia is an industrialized country. It is the 17th biggest economy in the world by nominal DP. In recent years, large numbers of internet-based startups, some of which have emerged as the world’s leading decacorns, have been supporting the economic uprisings in Indonesia. In the year 2025, it is projected that the worth of the internet economy in Indonesia will pass the USD 130 billion mark. The Indonesian economy relies on its thriving and vibrant domestic market.

2. Political Stability

A country’s political situation has a huge effect on the success of investment. In the simplest terms, a country in the middle of a full-blown conflict or war would never be an ideal spot to invest in, because it would put the investor in huge jeopardy. The first indicator of political stability is corruption within the political system. It is no secret that Indonesia has had to endure infamous corruption cases by political figures in the past. However, continuous efforts are constantly pursued by the country’s anti-corruption commission, KPK, alongside the police force in order to eradicate corruption to its very core. The second indicator is government management. In this regard, the Indonesian government has been able to maintain the quality of regulations they produce, navigating the country through the worst periods of the pandemic.

One of the most discussed laws, the Omnibus Law, is also deemed favorable for foreign investors. In terms of democratic accountability, the high usage of social media has enabled the people to voice their aspirations. This also increases accountability of the government. Any violation or unlawful practice could be made viral on social media, prompting immediate action from the authorities. Speaking of authorities, the police and military in Indonesia are doing an excellent job to protect law and order. Furthermore, there is a rule in place barring active members of the police/military to be involved in electoral politics. All these factors mentioned above show that the political landscape in Indonesia is stable and won’t disrupt your investment.

3. Investment Climate

The arrival of the Covid-19 pandemic has threatened the success of investments in Indonesia. To tackle this problem, Minister of Investment and Chairman of Indonesia Investment Coordinating Board (BKPM) Bahlil Lahdalia proposed several recovery strategies. First is to follow-up on stalled investments and initiate large scale investment. The Minister wants Indonesia to be more proactive and ask the investors what their problems are and offer help to solve it. Second is to compile a map of regional investment potential. This is done to list and compile all the potential areas for investment within the Indonesian territory and package in a proper way. It is hoped that this strategy will help attract investors to put their funds in Indonesia. Third, is to assist foreign investment relocation in Indonesia. 

4. Natural Resources

Indonesia as a country is blessed with the abundance of natural resources. The mining industry, which is commonly signified by extracting oil and gas, brings in roughly one-tenth of the nation’s GDP. By exporting and charging tax for them, it helps the country obtain more earnings to finance their own development. Fossil fuels such as petroleum, coal, and natural gas also make up a huge chunk of the country’s revenue. They are largely extracted from Sumatra and Kalimantan. In Indonesia, the ownership of natural resources and the right to process them are owned by the government.

Foreign investors work alongside government-owned companies under a production-sharing scheme. Foreign companies act as contractors and processors of the resources, using their facilities and supplying capital when necessary. Through the halfway point of 2022, the mining industry takes up 11,2% of the total of foreign investment, which accounts for USD 2,4 million. Ever since the country’s inception, natural resources have been the lynchpin of Indonesia’s economic progress and consistently stayed as a profitable industry which makes Indonesia even more appealing as a country to invest in.

5. Demographics

In 2030, Indonesia will reportedly acquire a demographic bonus which means that the working-age population is significantly higher than the young people and the elderly. In theory, this could be super beneficial for the economy. When the workforce increases, the economic growth and national prosperity will be significantly higher. For foreign investors, this could be good news.

Investing in Indonesia during demographic bonus means you could collaborate with high quality work forces. The Indonesian government will try and create as many job opportunities as possible. One of the best ways of doing this is to create a business environment that is friendly for potential investors. With more investors in the country, it should increase the amount of job opportunities up for grabs. 

6. Global Influence

As the only Southeast Asian country in the G20, it is clear to see that Indonesia has a prominent role internationally. Earlier this year, Indonesia had the honor to assume the presidency for G20. Through the “Recover Together, Recover Stronger” theme, Indonesia hoped to become a catalyst and role model for the rest of the world. In a time when we still have countries going to war against another, Indonesia would like to to remind the value of collaboration and partnership.

As the world collectively bounces back from the pandemic, Indonesia also hopes to push productivity in all sectors. For foreign investors, investing in Indonesia means you are on a partnership with a country with a fast rising economy.

How can Double M help?

If you have decided to invest in Indonesia, there are multiple procedures that you must go through. At Double M, we offer all the services you could possibly need starting from market research to company establishment.

Tax System in Indonesia – Before the inception of the Integrated Information System, the Indonesian government faced the obstacle of not being able to gain information about the flow of cash and goods. Recently, there is a problem regarding the export quota for Crude Palm Oil (CPO). Furthermore, information regarding the flow of cash and goods is also important since it directly affects the intensification of the country’s income, which is tax. 

To further integrate the information system, the government has tried several solutions. First, introduce the Automatic Exchange of Information (AEOI), an information system to help the tax matters of companies in the banking, stock market, insurance sectors. Second, involving the National Land Agency (Badan Pertanahan Nasional) and Notary to gain information regarding the ownership of tax-mandatory properties such as land and building. Third, involving the Regional Revenue Department (Dinas Pendapatan Daerah) and One-Stop Administration Services Office (SAMSAT) to gain information on the ownership of tax-mandatory objects, specifically cars, motorcycles, and other vehicles. Fourth, mending the Law of Value-Added (VAT) Tax, done by changing some of the goods/services that are not previously VAT Tax objects into VAT Tax objects.

New Rule in Tax System in Indonesia

With the inception of the Rule Number PER-03/PJ/2022 in the tax system in Indonesia, the Directorate General of Tax is trying to introduce the use of ID Number (Nomor Induk Kependudukan) in order to oversee the flow of cash and goods. With this newly introduced rule, the government will be able to identify the tax-mandatory income of Indonesian citizens, specially those who are yet to acquire a Tax ID Number (NPWP). 

In the rule it is mandatory for taxable employers (Pengusaha Kena Pajak), as the providers of taxable goods (Barang Kena Pajak) and taxable services (Jasa Kena Pajak), to list information such as name, address, Tax ID number (NPWP), and ID Number (NIK) on a Tax Invoice. If the taxable employers fail to provide this information, they could potentially receive an administrative sanction, which is a 1% fine deducted from the tax base value (Dasar Pengenaan Pajak). 

From the side of the recipients of taxable goods and services, they have to be more careful when it comes to either doing transactions or reporting their expenses and revenues. Every transaction involving taxable goods/services that are not final consumption or direct consumption, is considered to have business purposes. In this situation, it is more likely for the nearest Tax Office to ask questions regarding the revenue and income source of the taxpayer.

Changes on Tax Invoice Regulation

The following are the changes on regulation regarding Tax Invoice in accordance with the Directorate General of Taxes Rule Number PER-03/P/2022. First, The information that must be on the Tax Invoice regarding the handover of taxable goods/services to the recipients are name, address, Tax ID Number, and ID Number. Next, the name, Tax ID number in the Tax Invoice must be the exact match with the name and Tax ID number registered on the SKPP. 

Meanwhile, the address must be a match with the registered taxable goods/services. Furthermore, you must upload the electronic Tax Invoice (E-Faktur) on the 15th of each month. Taxable employers whose all/parts of business endeavors involve the handover of taxable goods/services to final consumers via electronic trades. Finally, taxable employers who do not report their Tax Invoice will get an administrative sanction which is a 1% fine.

How can Double M help?

The government is updating the tax regulations in order to track cash flow more efficiently. Double M strives to keep you updated about the ever-changing regulations. Should you have any inquiries, please contact us.

Electronic Visa on Arrival Indonesia – Following the successful introductions of Visa on Arrival (VoA) and Second Home Visa, the Indonesian Directorate General of Immigration plans to introduce the all-new Electronic Visa on Arrival (EVoA). The authorities have conducted full scale trials of the EVoA alongside its new payment gateway. On Friday (4/11), Indonesian representatives serving as Immigration Attachés abroad were the first ones to conduct a full scale trial of the system, arriving at Soekarno-Hatta International Airport at 10.40 p.m. local time. 

The successful trial means that the system is fully ready for launch on Wednesday, 9 November 2022. The introduction of the EVoA coincides with the G20 Conference on 15-16 November 2022. 

Electronic Visa on Arrival (EVoA) Indonesia Requirements

1. EVoA applicants must pay a fee of IDR 500.000 and will be granted a stay permit of 30 (thirty) days in Indonesia for purposes such as tourism, government visits, business meeting, goods purchasing, and transit. You also have the option to extend the stay for a further 30 days. 
2. Your passport must be valid for at least 6 months from the day you enter Indonesia for a EVoA with a 60-day stay duration
3. eVoa can be used 90 days at the latest after the payment is completed.
4. EVoA will be implemented gradually, prioritizing applicants arriving in Soekarno-Hatta International Airport, Jakarta and Ngurah Rai International Airport, Bali. 
5. For now, EVoA will be available for citizens from 26 countries. You can view the list of countries here.
6. You can process the EVoA through molina.imigrasi.go.id 
7. You must write down the document number exactly as displayed in the passport or identity card (ID card)
8. You must write down the “expiration date” or “valid until” as displayed in the passport or identity card (ID card).

Electronic Visa on Arrival (EVoA) Procedures

1. Apply

To apply, you must visit the molina.imigrasi.go.id and register for an account. You will have to fill in the following details: personal information, passport information, and account information (the email and password you used to register on the website), and upload your latest color softcopy photo file, with the face facing forward, size 4 x 6 cm with a resolution of at least 400 x 600 pixels, and a maximum file size of 200 KB in JPEG, JPG or PNG format.

2. Payment

After filling your personal details, you must pay a service fee of IDR 500.000 through the payment gateway which includes credit cards and debit cards with Visa, Mastercard, and JCB logos. 

3. Download

Upon the completion of your payment, you will be able to download your EVoA. The visa will be electronically linked to this Passport. The visa is only valid if you are traveling to Indonesia with this passport.

The introduction of EVoA is there to provide ease of access for foreign visitors to visit Indonesia. With this system, foreign visitors can complete their visa applications before their departure or while on transit. Visitors will also avoid the hassle of finding money changers since payment gateway will convert the currencies automatically. The hope is that with this policy, more visitors will come to Indonesia. 

How can Double M help?

Electronic Visa on Arrival Indonesia application has several procedures. With Double M’s help, you can obtain your EVoA with no hassle.

The food and beverages industry in Indonesia is one of the most highly regulated industries. Various licensing from various government bodies are required to be able to sell or distribute food and beverages products in the Indonesian market (as well as but not limited to cosmetics, medicine, and complementary products). Before carrying out the import and distribution process, the related industry must first have a product distribution permit issued by BPOM, called BPOM ML/MD Number.

Responsibilities of BPOM (National Agency of Drug and Food Control):

• Issue product distribution permits and certificates in accordance with standards and requirements for safety, efficacy/benefit, and quality, as well as drug and food testing in accordance with the provisions of laws and regulations.
• Conduct intelligence and investigations in the field of Drug and Food control in accordance with the provisions of the legislation.

Code Labels of Product Registration in Indonesia

• Code ML, which is granted to processed food and beverage products derived from imported products, either directly or repackaged. Valid for 5 years and can be renewed. 
• Code MD, which  is granted to large capital food and beverage products tacitly considered to have the competence to comply with the food safety requirements set by the government. Valid for 5 years and can be renewed. 

Pre-Registration Documents and Data BPOM ML Number registration:

• Letter of Appointment from the Principal/Manufacturer.
• CFS certificate from the Principal/Manufacturer.
• GMP Certificate from the Principal/Manufacturer.
• Master of Formula from the Principal/Manufacturer.
• Label and Packaging Design from the Principal/Manufacturer.
• Halal Certificate from the Principal/Manufacturer (if applied).
• Importer documents: NIB, SIUP, Commercial License, NPWP, Location Permit, and Import License.

How can Double M help?

Double M can help you in several areas including but not limited to food and beverage registration, medical device registration, and cosmetics registration.

Investing in Indonesia – As we slowly recover from the effects of Covid-19, the world economy is starting to get back on its feet. In many countries around the world, investment has been kickstarted at a very high level. According to the report released by the Indonesian Ministry of Investment/BKPM, Indonesia has received a total of IDR 310,4 trillion in foreign investments from January through June of 2022. This represents a significant increase from the figures gained in the previous year which stood at IDR 228,5 trillion.  When the investments are broken down per sectors, the following are the figures:

1. Base Metal Industry, Non-Machinery – USD 5,7 million (26,3%)
2. Mining Industry – USD 2,4 million (11,2%)
3. Water, Oil, and Gas Industry – USD 1,8 million (8,4%)
4. Transportation, Warehouse, and Telecommunication – USD 1,8 million (8,1 %)
5. Chemical & Pharmaceutical Industry – USD 1,8 million (8,1%)

There are two ways to interpret the list. You could see that it’s quite profitable for foreign companies to invest in the sectors listed above, seeing that they are putting in substantial amounts of funds and taking a large percentage of the total investments. On the other side, it is also viable for you to invest in other sectors not featured on the list, such as sports or creative industry. With fewer investors to compete with, it could be an interesting option for you to take a shot in these so-called out of the box options.

Common Pathways to Invest in Indonesia

It is important to note that there are two common pathways for foreign investors to invest in Indonesia. First, you can try and establish your company in Indonesia. This procedure typically requires a lot of funds and there are also strict and intricate procedures you need to follow. The second pathway is to identify pre-existing Indonesian companies operating in the same sector as yours, then invest your funds within that said company and join forces as business partners. This is seen as the simpler and easier way between the two, but the difficulty comes in the process of searching for the compatible local partner. Ideally, you need to find one that suits your company’s vision, goals, values, and culture.  

How can Double M help?

Before investing in Indonesia. It is important to decide whether you want to establish your own company or join forces with others. Double M can help you either way. We can help you establish your company in Indonesia or help you find local partners which suits you.

Using Payroll Vendor in Indonesia would be a wise choice for your company. Paying your employees’ in an efficient and timely manner is a true sign of a fair, committed, and trustworthy employer. Using an external payroll vendor is the best solution to help you manage, calculate, and complete your company’s payroll process. In our previous article, we have explained the reasons why you should utilize a payroll vendor in Indonesia.

Choosing a Payroll Vendor in Indonesia

1. Timing

Payroll, in concept, is all about timing. Salaries are paid in a fixed amount of time every month and when it comes to choosing a payroll vendor in Indonesia, you must look for one that is knowledgeable and experienced regarding the timing of executing their payroll service. For example, if you are looking to enhance your payroll system in the middle of the year, then Quarter 2 is a good time to start. Should you prefer to do it at the end of the year, some time around October is a good time so that it won’t obstruct any of your year-end processing.

2. Data Integration

In this current digitalized era, everything revolves around data. Services from Payroll Vendor in Indonesia heavily rely on the attendance data collected by the Human Resources team. It is crucial in order to assess the performance, attendance, and punctuality of the employees. Prior to choosing a payroll vendor, choose one that has integrated their payroll data in one, centralized database.

3. Tax Compliance

In Indonesia, employees tax are upon their earnings. In most companies, the tax deductions are straight from the salaries in order to simplify things. This process involves intricate calculation which involves many numbers and ever-changing tax regulations. So when choosing a payroll vendor or payroll provider in Indonesia, you need to pick one with proven expertise and experience in dealing with tax. It would be better if the vendor has a dedicated Tax team that takes care of all tax related matters.

4. Data Conversion

We previously mentioned the importance of having an integrated database. It is important to note that data is very crucial in this process because everything will be converted and processed into the end product which is the payroll details received by the employees. The payroll vendor in Indonesia should have expertise in data analysis and data processing in order to smoothen the entire procedure.

5. Customer Service

Payroll service in Indonesia will continue on as long as the company is operating with all the employees in it. That means payroll is a key, anchor service that ensures the employees payment is efficient. With a large amount of people and large amounts of data, there could potentially be times when you need extra help and extra care from. That is precisely why you have to select a payroll vendor in Indonesia with excellent customer service that will always be one call away to help you.

How can Double M help?

Using a payroll vendor in Indonesia will revolutionize the way you compensate your employees. Double M strives to manage your company’s payroll in its entirety so you can fully focus on your business.  Should you have any inquiries, please contact us.

On Tuesday, 25 October 2022 the Indonesian Directorate General of Immigarion officially launched the Second Home Visa Policy. This policy is on the Circular Letter Number IMI-0740.GR.01.01 of 2002 about Visa and Limited Second Home Stay Permit. The introduction of his policy was just before the commencement of the 17th G20 Heads of State and Government Summit at Bali in November 2022.

Speaking to the press on Tuesday (25/10), the acting General Director of Immigration Widodo Ekatjahjana explained that the policy was made in order to attract more international tourists to Indonesia. The policy is seen as a necessity in order to improve the tourism sector in Indonesia. 

The subject of the policy itself is foreign citizens (Warga Negara Asing) or former Indonesian citizens (ex-WNI) who aspire to stay and contribute to the Indonesian economy. The recipients of a Second Home Visa can choose to stay in Indonesia for 5 or 10 years. It is also important to note that this policy is effective 60 days after the issuance of the circular letter. The application can be submitted online (visa-online.imigrasi.go.id) with the following requirements:

1. Valid passport with at least 36 months left before expiry
2. Proof of fund, in the form of bank account owned by other foreigners or guarantor worth at least IDR 2 billion or equal
3. Identification photo printed in color, sized 4 cm x 6 cm, white background
4. Curriculum Vitae

Procedures to obtain a Second Home Visa

1. VITAS Application

In this phase, the foreign citizen must apply for the VITAS through the online portal provided by the authorities.

2. VITAS Payment

After the application, the foreign citizen will receive a PNBP payment bill that must be paid within 7 days since it was issued. 

3. VITAS Issuance

After completing the payment, the applicants will get the VITAS electronically on their email.

4. Applicant Arrival

Upon the applicants’ arrival in Indonesia, they will be assisted by the Immigration authorities to convert their e-Visa into an ITAS, which must state the applicant’s domicile in Indonesia during 30 days of their time in Indonesia. 

5. ITAS Application

The applicant must come to the nearest Immigration office to complete the PNBP ITAS payment.

6. Biometrics

Upon the completion of the PNBP ITAS payment, the applicant will collect biometric information such as fingerprints to the Immigration authorities. 

7. ITAS Issuance

The Immigration authorities will process and verify all the collected data. The process is for two working days after the biometrics process.

How can Double M help?

Second Home Visa is a new policy in Indonesia which aims to attract more visitors into the country. Double M strives to help our clients with our immigration services. Should you have any inquiries, please contact us.

Force majeure is a contract clause that removes liability for catastrophic, unforeseen events, extraordinary event or circumstance beyond the control of the parties, that prevent participants from fulfilling obligations.Force majeure is a clause often found in contracts which frees both parties in agreement from their respective liabilities and obligations when an extraordinary event or circumstance beyond control of both parties is happening. Generally, force majeures are divided into two main categories:

1. Absolute Force Majeures (Absolute Onmogelijkheid)

This is an instance when one of the party could not meet their end of the bargain due to natural incidents like earthquake, flood, epidemic, and mass riots

2. Relative Force Majeures (Relatieve Onmogelijkheid)

This is an instance where one of the parties failed to meet their end of the deal due to legal obstacles. 

Furthermore, there are several requirements that determine whether an incident is a force majeure or not:

1. When the defined obligations within the agreement, cannot be performed due to a destructive event and/or destructive to the object of agreement, this condition is absolute.
2. The defined obligations within the agreement, cannot be performed due to unforeseen circumstances which makes it impossible for either parties to fulfill their responsibility.
3. The defined obligations within the agreement, cannot be performed due to sudden incidents outside the predictions of the parties and are not the fault of the parties involved. 

In Indonesian Civil Law Articles 1244 and 1245 of the ICC (Indonesian Civil Code), it is constituted that force majeure can exempt a party from its contractual obligation should there be any unpredictable circumstances beyond its control. The party would then not be held accountable for the liabilities and damages caused. After knowing the legal basis of this matter, it is important to know about the key aspects that must be clarified in the force majeure agreement and also the aftermath of the event.

1. Detailed Description of Force Majeure Event

In the agreement, both parties must define and agree the events that could potentially be categorized as a force majeure. For example, in musical concerts, heavy rain and thunderstorms are commonly considered as circumstances considered as force majeure. Furthermore, should the force majeure occur, the responsible party should give a detailed, chronologic, chain of events that happened during the force majeure. This explanation is very crucial to determine whether the force majeure actually happened. In relation to their responsibilities, this explanation will also determine whether they are eligible to be relieved or exempted from their end of the deal. 

2. Aftermath of Force Majeure

After the force majeure happens, the responsible party must be able to recount the aftermath. Especially, they must be able to reasonably explain how the force majeure is causing the event to fall through or making them unable to fulfill their responsibilities. 

3. Mitigation Steps 

In the force majeure agreement, both parties must discuss and agree to the terms of mitigation steps should a force majeure happens. For example, outdoor musical concerts, moving the audiences to an indoor/semi-indoor stage is commonly used as a mitigation when force majeures like heavy rain and thunderstorms happen. Having clear mitigation steps and preparing it properly beforehand helps both parties take quick action should a force majeure happen. 

4. Prove of Exhaustion of the Mitigation Steps

Mitigation steps are prepared and conducted should a force majeure occur. The responsible parties must prove that mitigation steps are already taken but it could not prevent the force majeure from affecting their event/deal. By proving this, the terms agreed in the force majeure agreement will come into effect and the responsible party will be relieved from fulfilling their obligation. 

How can Double M help?

Making a force majeure agreement will help protect both parties from unwanted circumstances. Double M can help you formulate a force majeure agreement in Indonesia that suits both parties.

Tax consultant in Indonesia can be very useful for a company. Upon starting your business in Indonesia, you will immediately realize that tax is an important matter in the country. Tax in Indonesia is a huge source of income for the local government. Therefore, every amount you earn as an individual or collectively as a company will be subject to tax according to the pre-existing regulations. These regulations are ever-changing and detailed which could make it hard to keep up with. As a result, the demand for tax consultants is off the charts. 

Tax Consultant in Indonesia: The Definition

Tax consultant in Indonesia is a qualified tax professional who gives advice to their clients regarding their tax obligations. After hired, tax consultant will assist and consult the client prior to making decisions regarding their tax obligations. Here are a few reasons why you should hire a tax consultant in Indonesia.

1. Keeping up with the regulations

In Indonesia, companies have to pay for several taxes, such as corporate income tax, employee withholding tax, and value-added tax. Each of these taxes have different rates and different percentages. With a tax consultant in Indonesia at your disposal, you will have someone that can keep track of these rates and regulations and will be able to assist your decision-making if a regulation change ever happens.

2. Help you save money

With a tax consultant’s help, you will be able to assess your potential tax returns and find ways around the regulation which would help you save money. These alternative and smarter ways to pay tax are only known by tax consultants with a certain degree of experience and expertise in the area. Moreover, A good tax consultant will give you detailed information regarding tax report in Indonesia and explain how you can save money.

3. Help you save time

The average tax returns take about 20 hours to complete. This timeline is projected for experienced tax professionals. Now imagine if someone without previous experience in dealing with tax is asked to perform this duty, it will undoubtedly take more time and energy. A tax consultant in Indonesia gives you a reliable option to delegate your tax matters so you can save time and actually focus on running your business.

4. Avoid mistakes

Taxes often involve the calculation and analysis of huge numbers. This is a condition that is very vulnerable to mistakes. Therefore, by hiring a tax consultant, you will have someone reliable to pay attention to all the details and make sure all the calculations are precise.

How can Double M help?

Hiring tax consultant in Indonesia will help you comply with the tax regulations in Indonesia. Double M provides tax consultancy services for all your tax-related matters. Should you have any inquiries, please contact us.