IT Business in Indonesia: How Foreign Companies Can Enter the Market
Indonesia is one of the most dynamically developing digital markets in Asia.
The country actively invests in technology, e-governance, cybersecurity, and startup ecosystems.
For foreign IT companies, this creates favorable conditions for expansion and entry into the Southeast Asian market.
Why You Should Open an IT Company in Indonesia
Foreign companies can officially operate in the country by registering a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a company with foreign investment.
Such a legal entity allows providing services legally, signing contracts with local clients, hiring employees, and generating income in Indonesia.
The IT sector is fully open to foreign ownership.
Most sectors are categorized as low risk and do not require complex licensing. Company registration is done online through the government OSS system and takes minimal time.
What a Foreign IT Company Can Do in Indonesia
IT companies can offer a wide range of services, including:
web and mobile application development;
IT consulting and technical support;
UI/UX and web design;
implementation and maintenance of IT systems;
creation of SaaS platforms and cloud solutions;
cybersecurity and data protection services;
digital marketing and analytical services.
Separate licensing is only required for areas related to fintech, cryptocurrency, e-commerce, or personal data processing.
Key Requirements for PT PMA
Minimum share capital — 10 billion rupiah (declared on paper).
Founders — at least two people (a director and a commissioner).
Office — registration at a virtual address is allowed, but it is recommended to move to a physical office later.
Taxation
New companies benefit from a simplified system:
0.5% of turnover for revenue up to 4.8 billion rupiah (~300,000 USD per year);
after three years or exceeding the limit — 22% of net profit;
dividend tax — 10%;
VAT — 11%.
Alternative for Specialists — KITAS for Remote Workers
If you work in IT for a company outside Indonesia and do not plan to open a business, a KITAS for remote workers suits you — a long-term residence permit that allows you to live legally in Bali and work remotely for a foreign employer. This format is ideal for freelancers, programmers, designers, and other specialists leading international projects.
How We Can Help
Our team provides comprehensive services for IT specialists and entrepreneurs:
registration of PT PMA and assistance in business setup;
selection of the appropriate KBLI for the type of activity;
obtaining an Investor KITAS for company owners;
arranging a KITAS for remote workers for freelancers and remote staff;
consultations on tax and visa matters.
We will help you choose the optimal solution for your objectives — from legalizing existing activities to entering the Indonesian market.
Schedule a free consultation — our specialists will tell you where to start and which steps are right for you.
