April 14, 2015

Indonesia is the largest archipelago in the world, comprising of around 17,500 islands, situated between two continents, Asia and Australia and two oceans, the Pacific and Indian Ocean. It may be surprising for some to learn that Indonesia is in fact the fourth largest country on earth, only behind China, India, and the United States. Indonesia’s last official census recording in 2010 shows 237 million people living on its 17,508 Islands. However, in 2014, the population was estimated to be at 252.8 million.

The Indonesian government is a multi party-system. It is a presidential representative democratic republic by which the President of Indonesia is both head of state and head of government. The Constitution of Indonesia (Undang- Undang Dasar 1945) is the basis for the government of Indonesia and the common law system.

There are 5 state owned banks, 11 foreign banks, and around 115 private banks operating in the country, most of them have head offices in Jakarta. The currency there is the Indonesian Rupiah. The Indonesian Rupiah converts to 0.000077 US Dollar.

Indonesians may work at will. Foreign workers and expatriates must possess valid working visas, work passes, and employment passes prior to commencing work. The required permitted passes come from the Human Resource Ministry and Immigration Office.

Employers have responsibility to withhold employees’ income tax every time they pay their salary, other allowances, and benefits. The deduction is based on Article 21 Income Tax Act. The rates are progressive, starting from 5% and increasing gradually up to 30% for the higher income layers.

Expats moving to Indonesia can rest assure that they will have no problem in finding comfortable and affordable accommodations. Generally, condominiums are most popular with expats in Indonesia, especially those who work in Jakarta, as they are secure, and often boast highly sought-after amenities, such as gyms, swimming pools, and even tennis courts.

Please read more on Country Fact Pages located on our website. As always, our goal is to continue to make it as easy as possible for Western and European businesses to join-and succeed in the thriving Asia markets, and to expand our clients’ reach, and in turn, help to grow their operations at home.

For questions about Tiger-Consulting’s HR, Payroll, and Business support services in Asia, contact Custom quotes are free of charge.

Mercy Mildener
Public Relations and Marketing Consultant

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