Service in Indonesia
Greeting
For Companies Considering Expansion into Indonesia
Indonesia and Japan have long maintained strong and positive relationships in the economic, cultural, political, and diplomatic spheres. Indonesia, which has the largest population in Southeast Asia, is endowed with abundant natural resources and a young workforce, making it an attractive destination for business expansion.
While Japanese investment in Indonesia has traditionally focused on manufacturing industries—particularly electronics and automotive sectors—as well as related businesses, recent years have seen a growing number of service-oriented companies entering the market to capture the expanding consumer base. As a result, investment volumes, the number of Japanese-affiliated companies, and the number of Japanese residents in Indonesia have continued to increase steadily.
We provide tailored support to meet the individual needs of each client, regardless of company size, business sector, or prior overseas business experience. Leveraging our extensive experience in Southeast Asia and Indonesia, we are committed to supporting the sustainable, mid- to long-term business continuity and growth of our clients in both Indonesia and Japan.
In addition, we place strong emphasis on services for Japanese headquarters of companies that have already established operations in Indonesia and are facing challenges related to local business management or international tax compliance in Japan. Please feel free to contact us for an initial consultation.
Overview
One-Stop Accounting, Tax, and Legal Support in Indonesia
In October 2011, we established our fourth overseas office by setting up a local subsidiary in Indonesia, home to Southeast Asia’s largest consumer market with a population exceeding 200 million. Indonesia has attracted significant investment from Japanese manufacturing and service companies, particularly in the automotive industry, and our Indonesia office was established to meet a wide range of client needs in this dynamic market.
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Accounting & Tax Services
We provide accurate and timely preparation and review of monthly financial statements and tax filings (Corporate Income Tax, VAT, and Withholding Tax), as well as payroll services, to support effective monitoring of financial position and business performance while reducing administrative burdens.
Our services include:- Monthly bookkeeping, monthly tax calculations, and preparation of tax returns
- Review of monthly and quarterly financial statements
- Payroll processing, preparation of annual withholding tax certificates (Form 1721-A1), and support for individual income tax filings
- Annual corporate income tax calculation and preparation of tax returns
- Preparation of consolidation reporting packages
- Accounting system implementation support
- Assistance with various reporting requirements to Bank Indonesia
- Accounting and tax advisory services
- Tax audit support
- Preparation of transfer pricing documentation (Local File and Master File)
- Financial and tax due diligence
- Quarterly investment activity reporting to the Investment Coordinating Board (BKPM) (LKPM)
Audit Services
In Indonesia, all foreign-invested companies are required to undergo an annual statutory audit, regardless of company size. In cooperation with our affiliated audit firms and Japanese Certified Public Accountants, we conduct audits that meet our clients’ specific needs to the greatest extent possible, while fully complying with the requirements of Indonesian authorities as well as those of listed Japanese parent companies.
We provide clear and appropriate reporting on audit findings and issue audit reports in accordance with applicable regulations and standards.- Annual statutory financial audits
- Preparation of audited annual reports on foreign currency-denominated liabilities (KPPK) to be submitted to Bank Indonesia
- Various investigative and assurance services (including support for internal audits conducted by headquarters or parent companies)
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Legal Support
Company Establishment and Representative Office Setup
At the market entry planning stage, we provide comprehensive advice on business scope, foreign ownership restrictions, capital structure, and other key considerations. Our goal is to enable clients to commence their operations in Indonesia as efficiently and quickly as possible.
- Establishment of foreign investment companies (PMA) and domestic companies (PMDN)
- Establishment of representative offices, including:
– Foreign Company Representative Office (KPPA)
– Foreign Trading Company Representative Office (KP3A)
– Construction Representative Office - Review of proposed business activities and transaction structures in Indonesia, including pre-entry market research
- Comparison and evaluation of entry structures (wholly foreign-owned, Indonesian-owned, or representative office)
- Development of market entry and establishment schedules
- Preparation and submission of application documents on behalf of clients
Since our establishment, we have supported numerous Japanese companies operating in Indonesia with a wide range of legal and regulatory procedures. Our experienced Indonesian and Japanese professionals provide the following services:
- Application, renewal, and cancellation of work visas, temporary stay permits (ITAS), and work permits
- Support for corporate restructuring procedures (including updates to legal documents, capital increases or reductions, changes of directors and officers, and changes in shareholders)
- Support for shareholders’ meeting procedures
- Assistance with the preparation of employment contracts and internal work rules
- Closure and liquidation of companies and representative offices
- Translation services in Japanese, English, and Indonesian
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Flexible Support
Through our extensive experience working with Japanese companies operating in Indonesia as well as public institutions such as local governments in Japan, we have received a wide range of requests and support needs. Our experienced bilingual professionals provide practical and flexible assistance to support our clients’ business operations in Indonesia to the fullest extent possible.
- Interpretation and translation services
- Support services for local governments and other public institutions