Overview of Indonesia
The Republic of Indonesia, commonly known as Indonesia, is a country in Southeast Asia. Comprising approximately 17,508 islands, it is the world's largest archipelagic state. Spanning across both Asia and Oceania, it is affectionately known as the "Land of a Thousand Islands." With a population of over 280 million, Indonesia is the fourth most populous country in the world. It is home to more than 100 ethnic groups, with the Javanese making up about 47%, the Sundanese 14%, the Madurese 7%, and ethnic Chinese approximately 5%. Indonesia is a republic, with its president and members of parliament elected by popular vote. The capital, Jakarta, is a major city in Southeast Asia and a renowned global seaport, located on the northwestern coast of Java. Indonesia shares land borders with Papua New Guinea, East Timor, and Malaysia. It also has maritime borders with neighboring countries, including Singapore, the Philippines, and Australia. Indonesia is one of the founding members of the Association of Southeast Asian Nations (ASEAN) and a member of the G20. It is the world's 16th largest economy by nominal GDP and the 15th largest by purchasing power parity (PPP). Indonesia is one hour behind Beijing time. Its international dialing code is +62, and the official currency is the Indonesian Rupiah. The country features a typical tropical rainforest climate with an average annual temperature of 25–27°C and no distinct four seasons. The dry season runs from May to October, while the rainy season lasts from November to April. Administratively, Indonesia is divided into 31 provinces, 2 special regions, and 1 capital region.
Due to the spread of islands, Indonesia has hundreds of different ethnic groups and languages. The largest ethnic group is the Javanese, and it is politically dominant. There are more than 200 ethnic languages in Indonesia, and Indonesian is commonly used. Indonesia has no state religion. About 87% of the population believes in Islam, making it the country with the largest Muslim population in the world. 6.1% of the population believes in Protestant Christianity, 3.6% believes in Catholicism, and the rest believe in Hinduism, Buddhism and primitive fetishism. Although the population is large and dense, Indonesia still maintains a large number of wilderness, and its biodiversity ranks second in the world. The country is rich in natural resources and is known as the "Treasure Island of the Tropics". Among them, mineral resources, biological resources, agricultural resources and tourism resources are quite abundant, providing favorable conditions for the sustainable development of the country's economy.
In Indonesia, a central and local taxation system is implemented, and tax legislation and collection powers are mainly concentrated in the central government. The current main taxes are: corporate income tax, personal income tax, value-added tax, luxury sales tax, land and building tax, departure tax, stamp tax, entertainment tax, radio and television tax, road tax, motor vehicle tax, bicycle tax, Advertising tax, foreigner tax, development tax, etc.
Main taxes and tax rates Income tax: On July 17, 2008, the Indonesian National Assembly passed the new "Income Tax Law", the highest personal income tax rate was reduced from 35% to 30%, divided into four levels, below 50 million rupiah, and the tax rate was 5%; Ten thousand dong to 250 million dong, 15%; 250 million dong to 500 million dong, the tax rate is 25%; those over 500 million dong, the tax rate is 30%. The corporate income tax rate was 28% during the transitional period in 2009 and reduced to 25% after 2010. Indonesia also has incentive measures for small, medium and micro enterprises, reducing or exempting 50% of income tax.
Value-added tax: Generally, a 10% value-added tax is levied on imports, production and services.
Stamp duty : a symbolic tax of IDR 3000 or IDR 6000 to the of some contracts and other documents. Indonesia's preferential tax policies for foreign investments. According to the Indonesian Government Regulation No.1 on Preferential Income Tax Preferences for Investment in Specified Enterprises or Specified Regions in 2007, the Indonesian government's new investment in the form of limited companies and cooperatives has been expanded to provide investment Income tax incentives.
The income tax benefits offered include :
(1) The corporate income tax rate is 30% (according to the new "Income Tax Law", 25% after 2010), which can be paid within 6 years, that is, 5% annually;
(2) Speed up repayment and depreciation;
(3) When dividends are distributed, the income tax rate paid by the foreign-funded enterprise is 10%, or according to the current double taxation avoidance agreement, a lower tax rate is adopted;
(4) A loss compensation period of more than 5 years shall be granted, but the maximum shall not exceed 10 years. The above-mentioned income tax concessions are issued by the Minister of Finance and evaluated annually.
Investment promotion policy Since January 1, 2007, the Indonesian government has exempted 6 types of strategic materials from value-added tax, namely, original or dismantled capital materials (excluding parts and components) belonging to machinery and factory tools, livestock, poultry and fish feed or manufacturing feed Raw materials, agricultural products, seedlings or seeds of agriculture, forestry, animal husbandry and fishery, drinking water that can be drained through water pipes, and electricity (except for households with more than 6600 watts).
In February 2007, in order to attract foreign investment into Indonesia and encourage cooperation with local enterprises in the fish-processing industry, the Indonesian government planned to introduce a series of tax incentives, including exemption from export duties on domestically processed fish products, reduction or exemption of import duties on fishery-processing machinery, and reductions or exemptions of income tax and value-added tax. In addition, enterprises investing in integrated economic development zones and eastern regions would be eligible for reductions or exemptions of land-development taxes. According to Article 30, Paragraph 7 of Investment Law No. 25 of 2007, investment projects requiring approval by the central government include those involving natural resources that pose a high risk of environmental damage, investments spanning multiple provinces, and investments related to national defense strategy and national security.
Operating Hours:
Indonesian Time
8:00-12:00 in the morning, 14:00-17:00 in the afternoon
Communication language:
Support Chinese, English, Indonesian language services
Indonesian address:
Jln. Tol Jakarta Cikampek KM 37, Kawasan Industri Terpadu Indonesia China, Kav.35, GIIC-Kota Deltamas, Cikarang Pusat, Kab. Bekasi 17330, Jawa Barat, Indonesia.
China Address:
No. 18 Fenglin Road, Qingxiu District, Nanning City, Guangxi, China.
Power: www.300.cn This site supports IPv6.
WeChat