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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
The fiscal year begins on January 1 and ends on December 31 of the same year.
Accounting Standards
Accounting standards correspond to a brief version of the "Inventory of Generally Accepted Accounting Principles for Business Enterprises" drafted in 1964 by Paul Grady. Financial accounting standards (PSAKs) or GAAP.
Accounting Regulation Bodies
Bank Indonesia
Accounting Reports
The balance sheet is presented into accounts with liabilities composed of constant capital and debts. The profit and loss account gives priority to the repository of the global production and lets the choice of the cost classification either by nature or by function.
Publication Requirements
Financial statements must contain at least : a variation sheet of constant capital excluding the reserve account and balance carried forward, a cash flow sheet and the annexes.
The statements of the activity during the financial year include the balance sheet, the assets and liabilities account, the intermediate balance,  the statement of source and application of funds and an additional information statement. They are inseparable from each other. Accounts should be published annually.
Professional Accountancy Bodies
IAI , The Indonesian institute of accountants
The Indonesian accounting society
Certification and Auditing
The "Indonesian Institute of Accountants" represents the profession of accountant. The "Department of Finance" has the authority to issue recommendations and establish obligations for accounting.
Accounting News
Indonesia accounting news (en anglais)
The Indonesian accounting society
The Indonesian Journal of Accounting Research

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Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax, Pajak pertambahan nilai (PPN).
Tax Rate
Reduced Tax Rate
- sellers of second-hand cars, travel agents, postal services (1%)
- manufacturers of cigarettes (8.4%)
- machining services (0.5%), some small and medium retailers (2%), DIY construction (4%)
Other Consumption Taxes
There is a tax on luxury goods which ranges from 10% to 75%. Luxury goods are non-vital goods such as air conditioning, television (10-20%), goods whose consumption is exclusive to more well-off people like jewelry and precious metals (40-75%), goods consumed more for their status than their usefulness, such as luxury cars (75%), harmful products such as alcoholic drinks (30-75%) and some luxurious properties.

Learn more about Service Providers in Indonesia on, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
Single tax rate of 25%
Tax Rate For Foreign Companies
VAT applies in the same way to residents and non-residents.
Capital Gains Taxation
Long term capital gains are taxed as ordinary income, and losses are tax deductible.
Main Allowable Deductions and Tax Credits
Dividends received or derived from a resident company and stemming from holdings in another Indonesian limited liability company are exempt from tax if the beneficiary exercises commercial activities and holds at least 25% of the shares of the payer and if the dividends come from non-distributed profits. Generally, all legitimate expenses linked to business activities are deductible from income when income tax is calculated, but there are many exceptions. These can be deducted from tax: aid, donations and gifts received (as long as there are no commercial or work relations between the parties), inheritances, payments made by an insurance company (health, accident, life, education), premiums derived from interest on investment fund bonds (during the first 5 years after the setting up of the company), income generated by the main contractors in foreign aid projects, profits paid to a risk-capital company by an LDC doing business in Indonesia, the share of profits received by a member of a limited partnership without capital holding, affiliation, association or company.
Other Corporate Taxes
Income derived from resident companies and coming from foreign sources is subject to a unilateral tax credit concerning the foreign income tax paid. Income tax of 5% deductible at the end of the year, is levied on those who owe corporate tax. A tax on transfers of 5% is levied on buyers (except commercial activities). A 1% final tax apply on the monthly gross turnover of corporate taxpayers that earn income from certain business activities whose annual gross turnover is less than IDR 4.8 billion.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Indonesia East Asia & Pacific United States Germany
Number of Payments of Taxes per Year 51.0 25.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 259.0 209.0 175.0 207.0
Total Share of Taxes (% of Profit) 34.5 34.5 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Pajak penghasilan (individual income tax) Progressive rate from 5% to 30%
From IDR 0 to 50,000,000 5%
From IDR 50,000,001 to 250,000,000 15%
From IDR 250,000,001 to 500,000,000 25%
Over IDR 500,000,001 30%
Allowable Deductions and Tax Credits
Tax deduction allowance of 1 728 000 Rp for single people and 864 000 Rp for every married person.
Fixed deduction of 648 000 Rp (maximum) or 5% of the annual income.
Special Expatriate Tax Regime
There is no special tax regime for expats in Indonesia.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Agreement between UK and Indonesia about Double Taxation firmed in 1994
Withholding Taxes
Dividends: 20% ; Interest: 20% ; Royalties: 20%

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Sources of Fiscal Information

Tax Authorities
Directorate General of taxes
Other Domestic Resources
Website for information and discussion about taxes

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Learn more about Taxes and Accounting in Indonesia on, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The organization responsible for the protection of trademarks and patents in Indonesia is the Indonesian Patent Office (IPTEC). Consult also the Directorate General of Intellectual Property Rights, Ministry of Law and Human Rights.
Regional Organizations
There are harmonization procedures within ASEAN and APEC.
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Law No. 14 regarding Patents August 1, 2001
20 years Patent Cooperation Treaty (PCT)
Law n°15 concerning trademarks 1 August 2001
10 years Trademark Law Treaty
Law No. 31 regarding Industrial Designs December 20, 2000
Law n°19 regarding copyright 29 July 2002
50 years Berne convention For the Protection of Literary and Artistic Works
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Industrial Models
Law n°31 regarding industrial designs 20 December 2000

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Legal Framework

Independence of Justice
The judiciary is not completely independent in Indonesia. 
Equal Treatment of Nationals and Foreigners
Foreign nationals in the country cannot expect a fair trial from the country’s judicial system.
The Language of Justice
The judicial language in the country is Bahasa Indonesia.
Recourse to an Interpreter
Having an interpreter is always possible.
Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1945 which has gone through a series of amendments. The country’s legal system is based on Roman-Dutch law, again modified several times. The country does not accept compulsory ICJ jurisdiction. 
Checking National Laws Online
Law Online of Indonesia

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National Standards Organizations
National Standardization Agency (BSN)
National Accreditation Committee (KAN)
Integration in the International Standards Network
At the international level:

- International Electrotechnical Commission (IEC)
- International Organization for Standardization (ISO)
- Codex Alimentarius Commission (CAC)
- International Laboratory Accreditation Cooperation (ILAC).

At the regional level:

- ASEAN Consultative Committee for Standards and Quality (ACCSQ),
- APEC Standards and Conformance Sub Committee,
- Pacific Area Standard Congress (PASC)
- Asia Pacific Metrology Program (APMP)
- Asia Pacific Laboratory Accreditation Cooperation (APLAC)
- Pacific Accreditation Cooperation (PAC)
Classification of Standards
"SNI" is the national certification mark.
Online Consultation of Standards
The list of Indonesian standards is available on the BSN website (in Indonesian).


Certification Organizations
National Standardization Body (BSN)

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Business Practices

General Information
Advice from the Australian government
Opening Hours and Days
Banks: from 8 am to 2 pm, Monday to Saturday.
Public Administrations: from 8 am to 4 pm, Monday to Thursday; Friday until 11 am; Saturday from 8 am to 2 pm
Shops: from 8 am to 9 pm, Monday to Saturday; some supermarkets open on Sunday.

Public Holidays

Christian New Year (Tahun baru Masehi) 1 January
Islamic New Year (Tahun baru 1429 Hijriyah) 10 January
Chinese New Year (Tahun baru Imlek) 1st day of the 1st month of the Chinese calendar
Day of silence (Hari raya nyepi, Tahun baru Saka) New Year in the Balinese calendar
Birth of the Prophet Mohammed (Maulid Nabi Muhammad SAW)  20 March
Good Friday Variable
Labor Day 1 May
Waisak May
Ascension of Christ May
Ascension of Mohammed June
Independence Day (Hari proklamasi kemerdekaan RI) 17 August
Idul Fitri (end of Ramadan) Variable
Idul Adha (Feast of the Sacrifice) Variable
Christmas Day (Hari Natal) 25 December

Periods When Companies Usually Close

Ramadan Maximum 3 weeks
Christmas/New Year 1 week

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Last Updates: February 2015