You can learn more from our Frequently Asked Questions
Learn about the necessary regulatory requirements and corporate procedures involved in running a business in Indonesia. If you cannot find the information you need in our FAQ, please contact our team directly and we will be happy to assist you.
PT Trada Wira Sakti (TWS) is an Indonesian business consulting and licensing specialist that helps investors and companies successfully establish, develop, and operate their businesses through integrated market entry, regulatory compliance, technical permitting, and corporate advisory services. By combining local expertise with practical project execution, TWS enables clients to navigate Indonesia's regulatory environment efficiently while minimizing risk and accelerating business growth.
OSS is a centralized digital platform launched by the government to streamline business licensing and permits. Operating via the OSS RBA portal, it allows entrepreneurs to apply for and track permits (like the NIB) securely and transparently. For a deeper dive into local requirements, check out the OSS System Explained guide by Smart Advisory Solutions
NIB stands for Nomor Induk Berusaha (translated as Business Identification Number). It is an official, 13-digit identity issued by the government's Online Single Submission (OSS) system.
Yes, you can set up a company in Indonesia as a foreigner. You will need to establish a foreign-owned limited liability company called a PT PMA (Perseroan Terbatas Penanaman Modal Asing). This structure allows you to legally operate, generate revenue, own property, and sponsor your own work visas (Investor KITAS)
BKPM stands for Badan Koordinasi Penanaman Modal, it is the Investment Coordinating Board.It is the official government agency in Indonesia responsible for promoting, regulating, and approving foreign and domestic investments.
KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, which translates to the Indonesian Standard Industrial Classification. It is a system of 5-digit codes used to classify business activities, dictating your company’s licensing pathway, foreign ownership limits, and investment requirements.
TKDN stands for Domestic Component Level (or Tingkat Komponen Dalam Negeri in Indonesian). It is an Indonesian government regulatory framework that measures the percentage of local content—including materials, labor, and production facilities—used in manufacturing goods or providing services
SNI stands for Indonesian National Standard (Indonesian: Standar Nasional Indonesia). It is the only standard officially recognized and applicable in Indonesia
PT stands for Perseroan Terbatas, which translates to Limited Liability Company (LLC) in English. It is the most common legal business entity in Indonesia, meaning the owners' liability is limited to the amount of capital they invested
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing, which translates to a Foreign Investment Limited Liability Company. It is the official legal entity that allows foreign individuals or overseas corporations to legally own, operate, and generate revenue from a commercial business in Indonesia
A masterlist is a government facility provided by the Ministry of Investment (BKPM) that exempts or suspends import duties and taxes on capital goods, machinery, or raw materials for eligible investment projects
The Industrial Business License (locally known as Izin Usaha Industri or IUI) is a mandatory permit in Indonesia required for any enterprise engaged in manufacturing, production, or material processing. It is designed to ensure that your industrial activities, machinery storage, and waste management comply with national safety, capacity, and environmental standards
