Standard cost of invest in Indonesia like visa on arrival, corporate administration tariff,

tax rates, office leases, province minimum wage rates, employee salaries, work overtime
and overtime wage rate, Asian destination seaports, water tariff, electricity base tariff,
telephone service tariff, internet tariff.
1. Corporate Administration Tariff

2. The Tax Indentification Number (NPWP)

3. Tax Rates

4. Office Leases

5. Province Minimum Wage Rate

6. Employee Salaries

7. Visa on Arrival

8. WATER TARIFF

9. ELECTRICITY BASE TARIFF

10. Office Leases

11. PROVINCE MINIMUM WAGE RATE

12. Telephone Service Tariff

13. Internet tariff

Corporate Administration Tariff

Name Tariff
1. Ordering Corporate Name: Rp. 350,000,-
2. Corporate Bodys Establishment and Changing: Rp. 1,000,000,-
Source: The Ministry of Justice and Human Rights

The Tax Indentification Number (NPWP)

Since 1984, the tax office has required all individual residents in Indonesia to have their own
personal tax numbers, Nomor Pokok Wajib Pajak, or NPWP. This regulation includes expatriates,
with the exception for minors who are too young to work. In 2000, the tax office stepped up the
drive to require all expatriates in Indonesia to register with the tax office and obtain their separate
individual/personal tax number (NPWP) and pay monthly taxes.

Source : The Directorate of Tax, The Ministry of Finance.

Tax Rates
A. Tax rate applicable to entities as resident Taxpayers and permanent establishment:
Taxable Income Brackets Tax rate
Rp 50.000.000 (fifty million rupiahs) or less 10%
Rp 50. 000.001 (fifty million and one rupiahs)–100.000.000 (one
15%
hundred million rupiahs)
Over Rp 100.000.000 (one hundred million rupiahs) 30%
B. Profit after income tax of a permanent establishment in Indonesia shall be subject
to additional tax of 20 % (twenty percent or based on tax treaty), except if the
profit is re-invested in Indonesia, it will be governed by the Minister of Finance’s
decree.
C. Tax rate applicable to a non-resident Taxpayer other than a permanent
establishment in Indonesia : (or based on tax treaty)

Income Tax Rates

Dividends 20%
Interest, including premiums, discounts, swappremiums and
20%
compensation in accordance with a loan guarantee
Office Leases

OFFICE RENTAL COST

 Rental Cost* Size (M2)
Location Building
(M2/Month) Smallest Biggest
Arthaloka Rp 13,000 108 1,030
Chase Plaza Rp 120,000 203 1,300
Sudirman Road,
Central Jakarta Graham Niaga Rp 120,000 330 1,000
Wisma Nugra Santana Rp 115,000 79 -
Surya Building Rp 100,000 200 -
M.H Thamrin Road,
Plaza Permata Rp 115,000 120 650
Central Jakarta
Plaza BII US$ 24.5 150 1.750
Kebon Sirih Road, Arya Building Rp 97,000 44 60
Central Jakarta Menara Kebon Sirih Rp 100,000 200 2,300
Gatot Subroto Road, Kanindo Plaza Rp 60,000 113 200
South Jakarta Menara Jamsostek Rp 100,000 200 2,300
Ariobimo Sentral Rp 110,000 98 1,030
Graham Aktiva Rp 100,000 128 750
Rasuna Said Road,
South Jakarta Graham Paramita US$ 15.25 149 248
Lina Building Rp 85,000 85 255
M.T Haryono Road,
Graham Pratama Rp 86,000 339 600
South Jakarta
T.B Simatupang Road, Elnusa Building Rp 95, 000 184 150
South Jakarta Aneka Tambang Rp 103,500 80 -

*) rental cost includes charge of service

Source : Investor Daily (AS of February 2008)

Province Minimum Wage Rate

PROVINCIAL MINIMUM WAGE RATE (Starting January 2006)

No Province Rupiah/Month
1 Nangroe Aceh Darusalam 820,000
2 North Sumatra 737,794
3 West Sumatra 650,000
4 Riau 637,000
 5 Jambi 563,000
6 South Sumatra 604,000
7 Bangka Belitung 640,000
8 Bengkulu 516,000
9 Lampung 505,000
10 West Java 447,654
11 Central Java 450,000
12 East Java 390,000
13 DKI Jaya 819,100
14 Banten 661,613
15 D.I. Yogyakarta 460,000
16 Bali 510,000
17 West Kalimantan 512,000
18 Central Kalimantan 634,260
19 East Kalimantan 684,000
20 South Kalimantan 629,000
21 East Nusa Tenggara 550,000
22 West Nusa Tenggara 550,000
23 Maluku 575,000
24 North Maluku 528,000
25 Gorontalo 527,000
26 North Sulawesi 713,000
27 South Sulawesi 612,000
28 Central Sulawesi 575,000
29 South East Sulawesi 573,000
30 Papua 822,500

Source : Ministry of Manpower and Transmigration,2006

Employee Salaries

AVERAGE MONTHLY EMPLOYEE SALARY BASED ON POSITION (Rp)

Jobs Salary
Manager 2,966,395
Others 1,364,056
Professional 1,104,414
Clerks 1,085,794
Production Staff 644,772
Selling Staff 637,539
Service Clerk 537,658
Clerk 326,762
Average 684,915

Source : Central Bureau of Statistic (as of 2005)

Visa on Arrival

Visa on Arrivals Airports of Entry

AIRPORT CITY PROVINCE

Polonia Medan North Sumatra
Sultan Syarif Kasim II Pekanbaru Riau
Tabing Padang West Sumatra
Hang Nadim Batam Riau
Soekarno-Hatta Jakarta DKI Jakarta
Halim Perdana Kusuma Jakarta DKI Jakarta
Juanda Surabaya East Java
Adi Sucipto Jogjakarta DI Jogjakarta
Adi sumarmo Surakarta Central Java
Husein Sastranegara Bandung West Java
Ahmad Yani Semarang Central Java
Ngurah Rai Denpasar Bali
Selaparang Mataram West Nusa Tenggara
Ei-Tari Kupang East Nusa Tenggara
Hasanudin Makasar South Sulawesi
Sam Ratulangi Manado North Sulawesi
Sepinggan Balikpapan East Kalimantan

Visa on Arrivals Sea Port of Entry

SEA PORT CITY PROVINCE

Sekupang, Batu, Ampar, Batam Riau
Nongsa, Marina,Teluk
Senimba, and Batam
Center
Bandar Bintang Telani Tanjung Uban Riau
Lagoi and Bandar Sri
 SEA PORT CITY PROVINCE
Udana Lobam
Belawan Belawan North Sumatra
Sibolga Sibolga North Sumatra
Yos Sudarso Dumai Riau
Tanjung Balai Karimun - Riau
Tanjung Pinang Tanjung Pinang Riau
Teluk Bayur Padang West Sumatra
Tanjung Priok Jakarta DKI Jakarta
Tanjung Mas Semarang Central Java
Padang Bai and Benoa - Bali
Tenau Kupang East Nusa Tenggara
Maumere Maumere East Nusa Tenggara
Bitung Bitung North Sulawesi
Soekarno-Hatta Makasar South Sulawesi
Pare-pare Pare-pare South Sulawesi
Jayapura Jayapura Papua
WATER TARIFF

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WATER TARIFF

No. Costumer Classification Usage Block and Tariff per m3 (in Rp)

0 – 10 m3 11 – 20 m3 > 20 m3
Rp Rp Rp
1. Classification I 1.050 1.050 1.050
2. Classification II 1.050 1.050 1.575
3. Classification III A 3.550 4.700 5.500
4. Classification III B 4.900 6.000 7.450
5. Classification IV A 6.825 8.150 9.800
6. Classification IV B 12.550 12.550 12.550
7. Classification V/ Special 14.650 14.650 14.650

Classification I : Praying Place, and the like

Classification II : Government, Hospital, and the like

Classification III A : Housing, and the like

Classification III B : Small Industries, and the like

Classification IV A : Embassies, and the like

Classification IV B : Star Hotel, and the like

Source: Decree of of Governor of DKI Jakarta (2007)

ELECTRICITY BASE TARIFF

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ELECTRICITY BASE TARIFF

User Categories Power Block Loading Cost Usage Cost
(Rp/kVA) (Rp/kVA)
B-1 450 VA I : 0-30 kWh 23.500 254
II : > 30 kWh 420
900 Va I : 0-106 kWh 26.500 420
II : > 108 kWh 465
1300 VA I : 0-146 kWh 28.200 470
II : > 146 kWh 473
2200 VA I : 0-264 kWh 29.200 480
II : > 264 kWh 518
B-2 2201 VA s/d 200 kVA I : 0-100 JN 30.000 520
II : > 100 JN 545
B-3 > 200 kVA WBP LWBP 28.400 Kx452
M TR/TM/TT
I-1 450 VA I : 0-30 kWh 26.000 160
II : > 30 kWh 395
900 VA I : 0-72 kWh 31.500 315
II : > 72 kWh 405
1300 VA I : 0-104 kWh 31.800 450
II : > 104 kWh 460
2200 VA I : 0-196 kWh 32.000 455
II : > 196 kWh 460
2200 VA s/d 14 kVA I : 0-80JN 32.200 455
460
I-2 > 14 kVA s/d 200 kVA II : >80 JN 32.500 Kx 440
WBP LWBP
I-3 > 200 kVA 0 -350JN Block WBP 29.500 Kx439

> 350JN 439

Block WBP 439

Block WBP
14 > 30.00 kVA 27.000 434
Sumber : PLN (2008)

Office Leases

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Office Rental Cost

Size (M2)
Location Building Rental cost*
(M2/Month) Smallest Biggest

Sudirman Road, Gedung BRI II US$ 21 - -

Wisma GKBI US$ 21 300 -
South Jakarta

Medan Merdeka Road, Wisma Antara US$ 15 - -

Central Jakarta

Gatot Subroto Road, Menara Mulia US$ 19 - -

South Jakarta Wisma Mulia US$ 23 2.000 10.000

Rasuna Said Road, Atrium Mulia US$ 17 217 487

South Jakarta
Plaza 89 US$ 19 210 625

Plaza Kuningan US$ 17 2.323 10.000

Sentra Mulia US$ 19 2.000 -

M.T. Haryono Road, Siemens Business Park US$ 16 2.000 10.000
South Jakarta

Source: Mulialand (Maret 2009)

PROVINCE MINIMUM WAGE RATE

PROVINCE MINIMUM WAGE RATE (Rp)

No. Province Rupiah/Month

1. Nanggroe Aceh Darussalam 1,200,000.00
 2. North Sumatera 905,000.00
3 West Sumatera 880,000.00
4. Riau 901,600.00
5. Riau Island 892,000.00
6. Jambi 800,000.00
7. South Sumatera 824,730.00
8. Bangka Belitung 850,000.00
9. Bengkulu 727,950.00
10. Lampung 691,000.00
11. West Java 628,191.15
12. Central Java 575,000.00
13. East Java 570,000.00
14. DKI Jakarta 1,069,865.00
15. Banten 917,500.00
16. D.I. Yogyakarta 700,000.00
17. Bali 760,000.00
18. West Kalimantan 705,000.00
19. Central Kalimantan 873,089.00
20. East Kalimantan 955,000.00
21. South Kalimantan 930,000.00
22. East Nusa Tenggara 725,000.00
23 West Nusa Tenggara 832,500.00
24. Maluku 775,000.00
25. North Maluku 770,000.00
26. Gorontalo 675,000.00
27. North Sulawesi 929,500.00
28. South Sulawesi 905,000.00
29. Central Sulawesi 720,000.00
30. South East Sulawesi 770,000.00
31. West Sulawesi 909,400.00
32. Papua 1,216,100.00
33. West Papua 1,180,000.00

Remarks:

1. Central Java province does not set the standard of the provincial minimum wage rate for the
workforce. Thus the standard of the province is set by the lowest minimum wage rate of the
region at Brebes District of Rp. 575.000.-
2. East Java province does not set the standard of the provincial minimum wage rate for the
workforce. Thus the standard of the province is set by the lowest minimum wage rate of the
region at Blitar District of Rp. 570.000.-

Sumber : Depnakertrans (2009)

Telephone Service Tariff

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LOCAL CALL FARE (PER PULSE TARIFF)

Distance (Km) Time Duration Tariff (Rp)
0-20 00.00-09.00 3 minutes 250

09.00-15.00 2 minutes 250

15.00-24.00 3 minutes 250

>20 00.00-09.00 2 minutes 250

09.00-15.00 1,5 minutes 250

15.00-24.00 2 minutes 250

Source: PT. Telkom Indonesia Tbk. (As of May 2008)

DOMESTIC LONG DISTANCE CALLS

Based on Call Per Minute (and zone, time band)
Distance (Km) Time Tariff (Rp)
0-20 00.00-08.00 83
 08.00-18.00 122

18.00-24.00 83
>20-30 00.00-08.00 122

08.00-18.00 163

18.00-24.00 122
30-200 km 06.00-07.00 64
Wilayah 1 07.00-20.00 110

20.00-23.00 64

23.00-06.00 32
200-500 km 06.00-07.00 91
Wilayah 2 07.00-20.00 177

20.00-23.00 91

23.00-06.00 32
>500 km 06.00-07.00 113
Wilayah 3 07.00-20.00 210

20.00-23.00 113

23.00-06.00 32

Source: PT. Telkom Indonesia Tbk. (As of May 2008)

SLI Rate 017 Rate

(Standard) (Discount 40%)

No Country (Rp/Minute) (Rp/Minute)

1 Australia, Seluler 8.300 4.980

2 Kanada 8.300 4.980

3 Cina 10.700 6.420

4 Perancis, Seluler 10.700 6.420

5 Malaysia, Seluler 5.650 3.390

 6 Belanda, Seluler 10.700 6.420

7 Saudi Arabia 9.400 5.640

8 Singapura, Seluler 5.650 3.390

9 Inggris, Seluler 9.400 5.640

10 Amerika Serikat 8.300 4.980

Source: PT. Telkom Indonesia Tbk. (As of May 2008)

Internet tariff

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Private Line Package/ Mall Segment

Service Types Link Speed Registration Monthly Monthly Excess Usage Maximum Bill
fee Quota Limit
Mall Package Up to 1 Mbps Rp 75.000 Rp 75.000 5 jam Rp 75 per Rp 995.000
menit
Package Chat Up to 1 Mbps Rp 75.000 Rp 145.000 50 jam Rp 25 per Rp 995.000
menit
Family Package * Up to 384 Rp. 75.000 Rp 195.000
kbps
Load Package * Up to 512 Rp. 75.000 Rp 295.000
kbps
Game Package Up to 1 Mbps Rp 75.000 Rp 645.000
Executive Up to 2Mbps Rp 75.000 Rp 995.000
Package
Biz Package Up to 3 Mbps Rp 75.000 Rp 1.695.000

Source : www.plasa.com (As at Mei 2008)

Unlimited Packaged For SOHO, School, Campus,

Warnet, LAN (Corporate non PBX)
Type of Service Unlimited 384 Kbps
Target Market SOHO, Warnet, School

Max Speed (download) 384 Kbps

Max Speed (upload) 64 Kbps

Free Usage/Month Unlimited

Exceed Usage/Mbyte -

Registration Fee*) Rp 2.500.000

ADSL Link monthly fee *) Rp 1.520.000

*) Registration tariff without modem for 1 year commitment.

**) Internet tariff with TELKOMNet usage.

Source: www. plasa.com (As at Mei 2008)

Comparative Advantages that indonesia have compare with other country

A large number of SMEs (42 million) as the backbone of the domestic economy;
A vast and fertile land; Huge number of population (230 million) as potential market and
competitive work force; Strategically located (spanning several vital international sea
transportation routes); An open market economy;A free foreign currency exchange
regime.

Features of Law No. 25/2007 Concerning on Investment?

Equal Treatment
No Minimum Capital Requirement
Free to Repatriate Investment & Profit
Legal Guarantee
Dispute Settlement
Investment Services

Natural Resources

Cocoa
Crude Palm Oil
Fisheries
Energy
No. 2 world?s largest producer of Tin
No. 4 world?s largest producer of Copper
No. 5 world?s largest producer of Nickel
No. 7 world?s largest producer of Gold
No. 8 world?s largest producer of Coal and the most ?
?prominent steam coal exporter