Singaporeans in Indonesia
Business Expansion Guide 2025
Expand your Singapore business to Indonesia or establish a new venture in Bali. Leverage the Indonesia-Singapore tax treaty, ASEAN integration, and geographic proximity for seamless cross-border operations.
Services for Singaporeans
From company setup to ongoing compliance, we help Singaporean businesses successfully expand into Indonesia.
Indonesia-Singapore Tax Treaty Benefits
The Double Taxation Agreement (DTA) between Indonesia and Singapore significantly reduces withholding taxes on cross-border payments. This makes Singapore an excellent holding jurisdiction for Indonesian investments.
Read Full Tax Treaty GuideWithholding Tax Rates (with DTA)
Why Singaporeans Expand to Indonesia
Indonesia offers compelling advantages for Singapore-based businesses looking to grow.
Geographic Proximity
Just 2.5 hours from Singapore to Bali. Easy to maintain oversight of your Indonesian operations with frequent visits.
Favorable Tax Treaty
The Indonesia-Singapore DTA offers 10% withholding on dividends, 10% on royalties, and 10% on interest payments.
Same Timezone
Singapore and Bali share the same timezone (GMT+8), making real-time coordination seamless.
ASEAN Integration
Both countries are ASEAN members, benefiting from trade agreements and closer economic integration.
Strong SGD Exchange
The Singapore Dollar provides excellent purchasing power in Indonesia, stretching your investment further.
Established Business Corridor
Singapore is consistently among the top foreign investors in Indonesia, with well-established business pathways.
How to Expand to Indonesia
The typical journey for Singapore companies setting up in Indonesia.
Strategy Session
We analyze your business model and recommend optimal structure, ownership, and tax planning.
PT PMA Setup
Register your Indonesian subsidiary with OSS, get NIB, and establish corporate bank account.
Staff & Visas
Arrange KITAS work permits for Singaporean staff who will work in Indonesia.
Operations
Ongoing accounting, tax compliance, and regulatory reporting handled by our team.
Common Questions from Singaporeans
Quick answers to frequently asked questions about Indonesia expansion.
Can my Singapore company own 100% of an Indonesian PT PMA?
Yes, a Singapore company can be a 100% shareholder of a PT PMA for most business activities. The Indonesian positive investment list (DNI) determines which sectors allow full foreign ownership.
Do I need to be physically present to set up a PT PMA?
Not necessarily. The incorporation process can largely be handled remotely with power of attorney. However, you will need to visit for bank account opening and certain government procedures.
How do I claim Indonesia-Singapore tax treaty benefits?
You need a valid Certificate of Residence (COR) issued by IRAS Singapore. This must be submitted with DGT Form 1 to the Indonesian tax authorities before payment to claim reduced withholding rates.
What is the minimum investment for a PT PMA?
The minimum investment commitment is IDR 10 billion (~SGD 850,000), with minimum paid-up capital of IDR 10 million per shareholder. The investment can be fulfilled over time.
Can I be a director of my Indonesian company while living in Singapore?
Yes, foreign directors can be based outside Indonesia. However, at least one director should have a KITAS work permit if they will be actively working in the company.
Ready to Expand to Indonesia?
Join the many Singapore companies successfully operating in Indonesia. Get expert guidance on company setup, tax optimization, and compliance.
Get Free Consultation