The Advantages of Seeking Expert Assistance When Expanding a Business to Indonesia

29th December 2023

Forward-thinking businesses continually look for the next step to progress and get ahead of their competitors. New marketing strategies and excellent recruitment can play a major part, as can better finance control. Often, location will be looked at, and not just where a business is registered. There can be better opportunities for those who look overseas where there is a skilled workforce and increased profits. It might mean sending a current employee to a new location to oversee operations.

Finding a location which welcomes investors and new business is an obvious attraction, as is one which provides an exemption from corporate income tax. If it offers better allowances than can be found elsewhere, then that’s even better, as are exemptions on import and excise duties or on VAT and sales tax on luxury items. However, it’s not just as simple as packing someone off to get things started or employing a local. Those who look to expand in Indonesia should use one of the foremost PEO companies to offer expert assistance and ensure that compliance is followed.

The good news is that it is possible to expand into Indonesia without first becoming a legal entity, which is made far easier when forming a partnership with a team that understands all the local regulations and pitfalls, which can produce pitfalls and frustration for the uninitiated. Especially when there’s a transparent service waiting to be tapped into that doubles up as a PEO or professional employer organisation, as well as being able to act as an EoR or employer of record. This means that the business can outsource their employment while they decide how large the expansion will be.

Being provided with a dedicated account manager who communicates and ensures all vital information is relayed leads to a streamlined operation. This can also relieve stress which can be otherwise caused when trying to understand the local regulations. Knowing that the business will be fully compliant and be provided with complete advisory and corporate services ensures peace of mind for those monitoring progress in their homeland. 

The recruitment and hiring process will be taken care of by those with vast experience and who have helped numerous businesses in the same process over the years. Any employee will be registered with the employer of record, who will then ensure that they have the right credentials so that it is legal for them to work. A standout feature of using experts is that they can enter a business into a new market in as little as 48 hours, as well as the low cost involved. The limited liability if things go wrong for any reason is another benefit, especially for those dipping their toes in the water for the first time, while being provided with an exit alternative allows any business to give it their best shot with confidence that there will not be any long-term consequences if a project ends in failure. Perhaps they can concentrate instead on how to expose a brand to a wider audience.

Administrative tasks can also be looked after, such as payroll processing which can be a headache if unaware of how things work in Indonesia. Why worry about finding someone who would take weeks to get to grips with the complexities when it can be done expertly? Such details as local labour contracts, staff handbooks, and salary calculations can all be outsourced to those in the know. Whatever procedure and bonuses a business wishes to offer can be incorporated into the payroll service, whether it be gross income or taxable. Social insurance contributions and individual income tax will be organised, as will any monthly reimbursements.

Visas and work permits can cause problems if unsure of how they are obtained and applied for, so they are best left in the hands of those who deal with them regularly. The high incorporation-related costs that sometimes make a move to Indonesia seem off-putting and can be forgotten about, allowing any firm with ambition the opportunity to validate their business in an attractive location. Finding a team that guarantees that there are no hidden fees also adds to the temptation, as they also offer monthly payment fees as well as one-time project fees to cover everything. Perhaps a business owner may head over to see how things are progressing and chart the next steps, while also having the chance to visit a local museum at the same time.

If Indonesia doesn’t fit the bill, the same expert company can also assist with relocations and setting up businesses in other nearby countries, such as Vietnam or Thailand, while offering the same excellent customer service, making such moves uncomplicated.

Expanding a business in Indonesia is an attractive proposition and one that is made easier when enlisting the assistance of professionals who offer an expert service.

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