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Indonesia
Indonesia: World's largest archipelago. 17,000+ islands, diverse cultures, largest Muslim population. Rich biodiversity, active volcanoes, emerging economy.
last updated on Dec 28, 2024
Taxes
Individual tax rate: Moderate
Progressive income tax rates range from 5% to 35% of an individual's income.
Corporate tax rate: Moderate
The corporate tax rate is 22 percent. From 1997 to 2024, Indonesia's corporate tax rate averaged 27.14 percent; it peaked at 39.00 percent in 2002 and fell to a record low of 22.00 percent in 2021.
Crypto friendly: Moderate
While Indonesia does indeed permit cryptocurrency trading, the country is far from "crypto friendly" due to the government's ban on using cryptocurrencies for everyday purchases. Despite this, the country has become one of the world's leading crypto markets due to its high adoption rate and the large number of people trading cryptocurrencies on controlled exchanges.
Bank account friendly: Moderate
Most banks have a simple process that requires basic documentation and an initial deposit at a branch office. However, foreigners will need a valid passport and a temporary stay permit (KITAS) and may encounter slightly more complex procedures depending on the bank and their reason for being in the country. Opening a bank account in Indonesia is generally thought to be fairly easy, especially for Indonesian citizens with a KTP (identity card).
Visas
Investor Visa: Hard
Indonesia's "Investor KITAS" visa is considered moderately hard to get because you need to invest a lot of money in a company registered in Indonesia—usually at least 10 billion Indonesian Rupiah (IDR)—and show that you plan to run the business yourself. It's important to meet certain requirements about your company's finances and operations.
Digital Nomad Visa: Easy to Moderate
If you meet the basic criteria—a valid passport, proof of employment from a company outside Indonesia, a minimum annual income of $60,000, and enough bank balance—getting a Digital Nomad Visa in Indonesia is regarded as rather simple. However, you should make sure all documentation is properly ready and presented to avoid possible delays or complications.
Marriage Visa: Moderate to Hard
Though it is usually achievable if you meet the required criteria and follow correct procedures, getting a marriage visa in Indonesia, also known as a "Spouse KITAS," can be considered a rather difficult process due of the extensive paperwork, legal requirements, and possible hurdles involved; consulting an immigration lawyer or agency will greatly simplify the process.
Visitor Visa: Easy to Moderate
Most visitors can apply for an electronic visa (e-Visa) online, which is a quick and simple process and most applications approved within a few working days. Getting a visitor visa for Indonesia is usually considered not very difficult; nevertheless, ensuring you have all the necessary documentation and meet the eligibility criteria is important to avoid delays.
Student Visa: Moderate to Hard
Since it can take up to two months to obtain the required permits and visa, obtaining a student visa in Indonesia is regarded as a fairly complicated and drawn-out process that requires careful planning and preparation well in advance. As such, it is not a "easy" process to navigate; you should begin applying as soon as you receive confirmation of your university placement.
Work Visa: Hard
It is thought to be relatively difficult to obtain a work visa in Indonesia when compared to other countries. This is because the process is complicated, requires numerous government approvals, requires the employer to apply for a work permit on the employee's behalf, and requires a lot of paperwork and adherence to certain rules. As a result, it can be difficult for both the hiring company and the employee to navigate.
Economy and Business
Property Ownership: Hard
Due to stringent regulations that prohibit outright land ownership, foreigners can only purchase property through leasehold agreements or "Hak Pakai" (Right to Use) titles, which restrict their ownership rights in comparison to Indonesian citizens. This makes it relatively difficult for foreigners to own property in Indonesia and necessitates careful legal navigation and knowledge of regional variations in regulations.
Payment friendly: Moderate
Although cash is still the most widely used payment method in many parts of Indonesia, the country does accept the majority of major international payment methods, such as digital wallets like GoPay and DANA and widely accepted credit cards like Visa and Mastercard, particularly in tourist areas.
Economy: Moderate
As the largest economy in Southeast Asia, Indonesia's economy is regarded as "good" because it is resilient to global challenges, has a growing GDP, and is a rising economic powerhouse that is categorized as newly industrialized country. Nevertheless, it still faces issues like income inequality and infrastructure development.
Business friendly: Moderate
With a sizable population, a developing economy, and the ability to reach a sizable market, Indonesia is regarded as a rather business-friendly nation. However, there are obstacles that companies must overcome while doing business there, such as complicated bureaucracy and infrastructure problems.
Affordability: Cheap
Indonesia is generally considered a very affordable country by international standards, particularly for visitors from developed nations.
Communications and Technology
Internet: Improving
Indonesia's internet connectivity has seen significant improvements, particularly in speed and user penetration, but challenges remain.
Communication: Moderate
There are hundreds of regional languages spoken by Indonesia's many ethnic groups in addition to Bahasa Indonesia. For foreigners who wish to interact with individuals from particular areas, this could present difficulties. It is difficult for foreigners to learn Bahasa Indonesia because of its structural differences from Western languages.
However, approximately 30.8% of Indonesians are regarded as being able to speak English well or very well, indicating that a sizable portion of the population has at least a moderate level of fluency.
However, approximately 30.8% of Indonesians are regarded as being able to speak English well or very well, indicating that a sizable portion of the population has at least a moderate level of fluency.
Phone friendly: High
In general, owning a phone in Indonesia is not difficult. However, if you intend to stay longer than ninety days, you will need to register the IMEI number of your phone in order to use a local SIM card. This process can be a little challenging, especially if you are unfamiliar with the registration process. If you bought your phone outside of Indonesia, you will also need to pay a tax.
Social, Safety and Politics
Progressive: Moderate
With notable differences between urban and rural areas, Indonesian culture exhibits a blend of traditional and progressive ideas.
Religions: More than 5
There are six recognized faiths in Indonesia:
Buddhism, Confucianism, Hinduism, Islam, Protestantism, and Catholicism.
Nonetheless, Indonesia is a multifaith nation with a wide range of tribal and ancestral customs and beliefs.
Buddhism, Confucianism, Hinduism, Islam, Protestantism, and Catholicism.
Nonetheless, Indonesia is a multifaith nation with a wide range of tribal and ancestral customs and beliefs.
Safety: Moderate
Although traveling in Indonesia is typically safe, it's still advisable to be cautious and mindful of any potential hazards. There are several safety precautions to take into account, even if the nation offers stunning scenery and a wealth of cultural events.
Political Stability: Moderate
There are some good things about Indonesia's political stability, but there are also a lot of problems. Since 1998, the nation has demonstrated democratic endurance by holding five successful democratic presidential elections and maintaining a comparatively stable formal party system. Nonetheless, there have been indications of democratic regression and the deterioration of democratic standards in recent years.
Corruption: High
Indonesia's performance on a number of corruption indices shows that the country has serious problems with corruption.
Transparency International's 2023 Corruption Perceptions Index gave Indonesia a score of 34 out of 100. Since 2022, this score has not changed, suggesting that anti-corruption initiatives have not advanced.
Transparency International's 2023 Corruption Perceptions Index gave Indonesia a score of 34 out of 100. Since 2022, this score has not changed, suggesting that anti-corruption initiatives have not advanced.
Friendliness: High
Indonesians are renowned for their warmth and curiosity. You will undoubtedly encounter many greetings and inquiries if you are passing through a region that doesn't frequently receive international visitors. A broad smile and considerate responses will go a long way.
Education
Average education: Moderate literacy
Based on 12 years of required education, which includes three years of middle school, three years of high school, and six years of primary school, the average level of education in Indonesia is about completing senior high school, with 40% of Indonesians aged 15 and older having completed senior high school or higher.
International Schools: Moderate
Indonesia and international schools have a complicated relationship that demonstrates both openness and limitations.
Modifications to regulations: Indonesia made major adjustments to its rules governing international schools in 2014–2015.
The word "international" has to be removed from school names.
The term "joint-cooperation educational institutions" shall now be used. Indonesian language and culture must be taught in schools.
Modifications to regulations: Indonesia made major adjustments to its rules governing international schools in 2014–2015.
The word "international" has to be removed from school names.
The term "joint-cooperation educational institutions" shall now be used. Indonesian language and culture must be taught in schools.
Technological expertise: Developing
Even while Indonesia has made great strides in embracing technology, especially in metropolitan areas, efforts are currently being made to guarantee that these developments are felt throughout the archipelago.
Health
Seasons: 2 seasons
There are two distinct seasons in Indonesia: the dry season and the wet season.
Being a tropical nation, Indonesia predominantly experiences two seasons: dry and rainy. It does not experience the separate seasons of spring, summer, fall, and winter.
Being a tropical nation, Indonesia predominantly experiences two seasons: dry and rainy. It does not experience the separate seasons of spring, summer, fall, and winter.
Fitness: Low
With a large percentage of the population, particularly women, being overweight or obese and a worrying trend toward less physical activity, especially in urban areas, Indonesia is thought to have a relatively low level of physical fitness overall. Studies reveal that exercise participation is low and that many Indonesians find it difficult to lead healthy lives.
Pollution: High
Air pollution in Indonesia is a significant concern, with the country facing severe air quality issues, particularly in urban areas. The situation has worsened in recent years, posing serious health risks to the population.
Healthcare: Moderate
With major issues like understaffed public hospitals, limited access to high-quality care in rural areas, and a quality gap between public and private facilities, Indonesian healthcare is rated as "fair" to "average" overall, with room for significant improvement, despite the country's progress in expanding access to healthcare through its national health insurance program.
Diversity
Food diversity: Highly diverse
Because Indonesia is made up of more than 17,000 islands and hundreds of different ethnic groups, its food is extremely diverse.
Ethnics diversity: Highly diverse
With more than 600 distinct ethnic groups living throughout the archipelago, Indonesia is regarded as one of the most ethnically diverse countries in the world. The country's numerous islands are home to a wide range of cultures, most of which are indigenous to Indonesia and have a sizable Austronesian and Melanesian population.