Consideration for being Expatriate in Indonesia: Establish Business

Pertimbangan Menjadi Ekspatriat di Indonesia: Membangun Bisnis

Sebelumnya pada artikel memulai bisnis di Indonesia , kami telah menyebutkan jenis Bisnis apa saja yang dapat didirikan oleh orang asing atau ekspatriat di Indonesia dan disertai dengan beberapa persyaratan untuk melakukannya. Lalu hal apa lagi yang bisa menjadi pertimbangan bagi Ekspatriat untuk mendirikan bisnis di Indonesia. Bisa jadi lapangan usaha yang diperbolehkan bagi orang asing, perekrutan tenaga kerja, dan sewa kantor bisa menjadi pertimbangan bagi ekspatriat untuk memanfaatkan peluang bisnis di Indonesia.

Bidang usaha apa saja yang diperbolehkan bagi orang asing?

Sesuai Peraturan Presiden atau Peraturan Presiden (PerPres) Nomor 10 Tahun 2021 sebagaimana telah diubah terakhir dengan PerPres Nomor 49 Tahun 2021 tentang Bidang Usaha Penanaman Modal Pasal 2 (1) Semua Bidang Usaha terbuka untuk kegiatan Penanaman Modal, kecuali Bidang Usaha:

  1. Dinyatakan tertutup bagi penanaman modal yang terbagi atas bidang-bidang yang tertutup bagi penanaman modal menurut Undang-Undang Penanaman Modal seperti narkotika, perjudian, ikan langka, karang langka, senjata kimia, industri kimia yang merusak lapisan ozon dan bidang minuman keras.
  2. Untuk kegiatan yang hanya dapat dilakukan oleh Pemerintah Pusat adalah kegiatan yang bersifat pelayanan umum atau dalam rangka pertahanan dan keamanan yang bersifat strategis dan tidak dapat dilakukan atau bekerjasama dengan pihak lain.

Selain itu, sebagian besar bidang usaha di Indonesia diperbolehkan untuk ditanamkan oleh pihak asing termasuk ekspatriat. Pemerintah Indonesia bahkan memberikan insentif kepada beberapa bidang usaha yang menjadi fokus investasi untuk datang dan mendukung bidang tersebut. Berdasarkan Perpres Nomor 10 Tahun 2021, bidang usaha yang terbuka untuk penanaman modal dikelompokkan menjadi bidang usaha prioritas, bidang usaha yang mendapat peruntukan atau kemitraan dengan Koperasi dan UMKM, bidang usaha dengan persyaratan tertentu dan bidang lain yang belum disebutkan sebelumnya.

Bagaimana cara merekrut tenaga kerja di Indonesia?

After knowing regarding the field, the required documents, it also has to be noted regarding the employment of workers, either for local or foreign workers. In hiring local workers, there are no special requirements as hiring foreign workers that have to deal with immigration system. Although, commonly both foreign and local employers have to provide some facilities in order to hire employees or workers regardless of locals or foreigners including facilities such as health and accident insurance, paid leave, overtime wage, pension fund and/or severance payment, etc.

Special for hiring foreign workers, the company has to provide and assist foreign workers to have limited permission stay (KITAS). Although previously, foreign workers must have a visa for work in Indonesia based on the name of the foreigner to issue a permit by the Directorate General of Immigration, Ministry of Law and Human Rights. Thus, Foreign Worker Permit is a letter of decision containing regulation allowing Foreign Citizens (WNA) to work in Indonesia. In this matter, the meaning of Foreign Workers (TKA) is inhabitants’ foreign country that is holding a Visa to work in Indonesia. The current law employment based on:

  1. Regulation President No.20/2018 concerning Use of Foreign Workers (TKA) (Perpres No.20/2018)
  2. Regulation Minister Manpower No.10/ 2018 concerning Procedures for Employment of Foreign Workers (TKA) (Ministry of Manpower Regulation No. 10/2018). Rule This unplug rule previously that is Permenaker No.16/2015 and Permenaker No.35/2015.
  3. Regulation Government No. 34 of 2021 concerning Use of Foreign Workers (TKA) which are regulation derivatives of the Copyright Law Work (PP No.34/2021).

The Regional Minimum Wage of 2023

Based on Peraturan Menteri Ketenagakerjaan (Permenaker) No 18 in 2022, the minimum wage of 2023 has increased to 10%. West Sumatra is the province with the highest increase in the minimum wage of 2023 (UMP) is 9.15 percent, while North Maluku ran into the low increase of 4 percent.

The basis for setting the minimum wage salary is Permenaker Number 18 of 2022 concerning the determination of the UMP, in which all governors are required to announce the determination of the 2023 UMP in November 2022.

Meanwhile, DKI Jakarta is still the province with the highest minimum wage of 2023 (UMP) $329.44 or an increase of 5.6 percent. Central Java is the province with the lowest minimum wage of 2023 (UMP) $131.60 or an increase of 8.01 percent from the previous.

List of Notable City’s Minimum Wage in Indonesia on 2023:

  1. Karawang Regency: $347.88
  2. Bekasi City: $346.67
  3. Bekasi Regency: $345.28
  4. DKI Jakarta: $329.44
  5. Depok City: $315.50
  6. Cilegon City: $313
  7. Bogor City: $311.80
  8. Tangerang City: $308.11
  9. Tangerang Selatan Regency: $305.89
  10. Tangerang Regency: $304.29
  11. Serang Regency $301.96
  12. Surabaya City $304.14
  13. Gresik Regency $303.91
  14. Bogor Regency $303.79
  15. Sidoarjo Regency $303.68
  16. Pasuruan Regency $303.45
  17. Mojokerto Regency $302.75
  18. Batam City $302.46
  19. Purwakarta Regency $300.06
  20. Serang City $274.93
  21. Bandung City $272.09
  22. Bali Province Start from $182.2 to $212.43

In hiring foreign workers, there is no regulation regarding minimum wage for expatriates, it depends on the company that morally has to comply at least with the regional minimum wage in providing wage to expatriate/foreign worker. Although, if a business entity does not provide any record regarding wage on expatriate or foreign workers, the Indonesian government as in Directorate of General Taxes has guidance for tax officers to determine the wage standard of expatriate to be calculated for taxation purpose only. It is stated in the Decision of The Director General of Taxes Number 173 of 2002 regarding the Guidance of Foreign Worker Wage Standard that mentions several wages according to Expatriate country of origin and level of position. This regulation will be shown in another article regarding “Consideration for being Expatriate in Indonesia: Employment” that will briefly describe the employment environment of expatriates in Indonesia.

Advantage of hiring foreign worker (TKA), including:

  1. Fulfill professionalism and skill in some field that could not be filled by Indonesian Workers (TKI).
  2. Contributes to improving the productivity and growth of your organization from diversification of individuals from various countries with differences in values compared to locals.
  3. Less cultural and language gaps to be handle between foreign owners and foreign workers compared to local workers
  4. Hiring international or foreign workers will engage the international market more

 

Disadvantage of hiring foreign worker (TKA) or advantage of hiring local workers, including:

  1. International workers especially from developed nations tend to demand higher wages compared to locals that might also having the same level of skill
  2. Regulation for foreigner to stay and work in Indonesia is a lot complex rather than locals
  3. Foreign workers need adaptation to work in Indonesia and sometimes ended up costly
  4. Foreign workers are less engaging to the local market similarly as for local workers with international market

 

 

What if we want to rent an office or Shop? How much is it?

Here are the details of rent an office in the:

Price Rent Building Office Price rent building offices in CBD Jakarta when this averages approximately at USD 16.34 per square meter per month. However, the price This project goes on until the end of 2022 will be USD 16.59 per square meter per month. Meanwhile in the non-CBD area of Jakarta prices current average rent around USD 11.96 per square meter per month. Number is still increasing until the end of 2022 to be USD 12.15 per square meter per month.  If detailed based on region, following price the average rent for offices in Jakarta is currently this:

  • Thamrin around USD 15.11
  • Sudirman around USD 17.80
  • Rasuna Said approx. USD 15.61
  • Mega Brass around USD 15.29
  • Gatot Subroto around USD 14.97
  • Satrio around USD 13.36
  • Central Jakarta around USD 12.34
  • South Jakarta approx. USD 11.94
  • North Jakarta approx. USD 11.60
  • West Jakarta approx. USD 11.92
  • East Jakarta around USD 7.33

Price Sell Building Office For building strata title office in Jakarta CBD area, price selling on average approx. USD 2,404.16 per square meter. However, numbers keep increasing until the end of 2022 at USD 2,424.30 per square meter. Meanwhile, for Jakarta’s non-CBD area average price sells it worth USD 3,673.36 per square meter. But until late 2022, projected go on to become USD 3,706.93 per square meter. kindly detail, follows range price sell based on available space:

  • TB Simatupang range USD 1,678.87 -USD 2,686.18
  • Slipi And flower range USD 1,678.87 – USD 2,686.18
  • Kemayoran And Sunter range USD 1,678.87 – USD 2,686.18
  • Coconut Ivory and PIK ranges USD 1,678.87 – USD 2,686.18
  • Kasablanka And Kebayoran range USD 2,014.64 – USD 4,029.28
  • Sudirman range USD 2,014.64 – USD 6,715.46
  • Mega Brass range USD 2,686.18 – USD 4,029.28
  • Rasuna Said ranged USD 2,686.18 – USD 3,357.73
  • Satrio range USD 3,357.73 – USD 3,693.50
  • Gatot Subroto range USD 2,686.18 – USD 4,365.05
  • Thamrin range USD 3,357.73- USD 5,036.60

If we start at a smaller business such as a shop at the mall, the average of shop rent in Jakarta is around 38.05 USD per square meter. Meanwhile average shop rent in Bodetabek or satellite City of Jakarta is around USD 25.8 per Square Meter. In Bali the shop rent varies from around USD 6.05 up to USD 30 per Square Meter depending on the location. Therefore, keep in mind that proper consideration is really needed for settling in Indonesia and to grasp the business opportunity from noticing the business fields that open for foreign investment, how to hire employees and how much the rent pricing.

TBrights is an integrated business service in Indonesia that will assist you to settle and grasp a lot of opportunities in Indonesia.

by Tommy HO – Managing Partner TBrights

https://www.kitalulus.com/info-hrd/fasilitas-karyawan

https://ditjenpp.kemenkumham.go.id/index.php?option=com_content&view=article&id=1427:tenaga-kerja-asing-di-indonesia-kebijakan-dan-implementasi&catid=104&Itemid=183&lang=en#:~:text =For%20can%20work%20in%20Indonesia, Immigration%20Ministry%20Law%20and%20HAM

https://www.kompas.com/properti/read/2022/01/07/070000821/ingin-tahu-harga-terbaru-gedung-perkantoran-di-jakarta-ini-review?page=all

https://www.kompas.com/tren/read/2023/01/01/083100965/rincian-ump-2023-yang-mulai-berlaku-hari-ini?page=all

https://money.kompas.com/read/2023/01/14/145755026/10-daerah-umr-tertinggi-di-indonesia-2023-karawang-juaranya?page=all

https://batam.tribunnews.com/2023/01/02/besaran-umk-batam-2023-berlaku-awal-januari-tahun-ini

 

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