QuickStart: to Market Entry

Whether entering the market or simplifying operations, we can give you a QuickStart.

INDONESIA tmf-group.com Whether entering Indonesia for the first What makes us different? time or simplifying existing operations, we TMF Group is the global expert that understands local needs. can give you a QuickStart.

KNOWLEDGE: Based in- TMF Group has local experts in Jakarta providing , compliance, legal, country, our independent corporate secretarial and HR and payroll services across Indonesia. experts understand the local We can get you set up, provide a single point of contact and take care of those market and all its associated ‘non-core’ elements that keep your business moving, while you focus on what legal, financial and regulatory you do best: selling your products and services. compliance requirements. By taking the burden of the back office and centralising it through a single FLEXIBILITY: We can offer an provider, we work with you to increase efficiency and help strip out any individual and tailored service unnecessary costs. that is scalable in line with business needs and is invoiced in whatever currency the client prefers. QuickStart: to Market Entry Indonesia has five main elements: CONTROL: Through our worldwide network of wholly- owned offices, we can offer global reporting and one single We help sort and We can help you point of contact to businesses operating across multiple maintain your find and manage regions. legal set-up and an address to SPEED: Our local presence structure work from helps businesses to take an agile approach and enter new markets more quickly than their competition. RANGE: We are the only We help keep you We handle your We help your global organisation to compliant with accounting and staff get paid on offer a complete suite of complementary business local regulations requirements time according solutions. and filings to local rules

International incorporation and structuring: We manage the legal set-up and structuring of new or existing operations. Office premises: Whether you need registered addresses, rented offices or assistance managing your own premises, we can help with both your current and future needs. International entity management: We help you stay compliant, manage your risk and stay on the right side of regulators and filing requirements. Accounting and tax: We take care of Indonesian tax registrations, bookkeeping, management reporting, consolidation reporting and statutory accounts and reporting to relevant Indonesian and international standards. HR and payroll: We provide services for companies of any size by applying and implementing international policies in employment contracts and handbooks, and pay your staff in compliance with local law.

TMF Group serves clients of all sizes and from all sectors; everyone from a small start-up to a large multinational. We work with more than 40% of the current S&P 500 and Fortune 500. Thinking of doing business in Indonesia?

The challenges ...... and the opportunities Lack of local knowledge can result in: Great reasons to invest in Indonesia TAX PENALTIES Indonesia is fast-rising, with growth pontentials waiting to be uncovered. With Indonesia’s rich natural resources and very LOST BUSINESS large domestic consumption base, its government is working CRIMINAL AND CIVIL LITIGATION to improve major infrastructure weaknesses. The country itself is attracting a growing inflow of FDI, increasing 22.4% in one year from Rp 221 trillion in 2011 to Rp 270.4 trillion in Starting a business: The World Bank and International 2012. Finance Corporation (IFC) rank Indonesia in 128th place in the world for ease of doing business, underlining the Economic growth: The economy has weathered the rigorous processes involved in starting up. Compared global recession far better than its regional neighbours, to the OECD average of five, it takes nine procedures growing leaps and bounds thereafter. Its Gross Domestic to establish a corporate entity in Indonesia, taking Products (GDP) growth was 6.1% in 2012 and forecasted to an average of 47 days to complete. Businesses must be 5.9% in 2013 (source: World Bank). Major contributors liaise with the State Treasury, the Ministry of Law and of GDP (based on Q1 2012) are manufacturing and Human Rights and the Ministry of Manpower, as well as industry (23.6%), agriculture and forestry (15.2%), trade, completing several registrations. hotel and restaurants (13.5%), followed by mining and Registering property: It takes 22 days and six quarrying (12.7%). The country’s GDP per head is forecast procedures to register a property, including getting a land to hit USD8,883 by 2020. certificate examination and paying tax on the acquisition. Market opportunity: Being the 10th largest economy in Once again, the cost of registering property is far higher the world, the emerging global powerhouse in Asia has than the OECD norm. a large domestic consumption base. Boston Consulting Paying : There are a massive 51 tax payments to Group is predicting that this emerging middle class will be made each year, taking 259 hours of company time to continue to grow, almost doubling from 74 million to 140 deal with on average. Corporate income tax of 25% takes million by 2020, according to the Financial Times. The local 75 hours to process, and social security contributions and demands are an opportunity not to be missed. VAT add another 184 hours to the total. Access to talent: The country has a young labour force Culture: A lack of transparency and corporate governance with 50% of its population under the age of 29, and an means that there is widespread corruption and organised abundance of natural resources with strong demand from crime in Indonesia. Industrial disputes are also commonly , India and other rapidly expanding economies. stated by businesses as being a difficulty, and it is recommended to do extensive due diligence on all contracts. Enforcing contracts and resolving insolvency: It takes 498 days to enforce a contract and it incurs a sizeable cost. The same can be said of insolvency cases, where the average time is five and a half years and the recovery rate is a lowly 14.2 cents on the dollar, compared to the OECD average of 70.6 cents. Meet our Indonesia Managing Director

Vinod Kumar, a graduate from the UK’s University of Sheffield, is the Our office in Indonesia Managing Director of TMF Group in Indonesia. Jakarta Office Vinod is a qualified Chartered Accountant and was previously with 45th Floor, Menara BCA Grand Arthur Andersen/Ernst & Young in Kuala Lumpur and later with Indonesia, Jl. M.H Thamrin No.1 PricewaterhouseCoopers in London. His work experience encompasses Jakarta 10310, Indonesia statutory audit, internal audit, initial public offerings and transaction T. +6221 2358 5899 advisory services across a variety of industries. F. +6221 2358 5898 Vinod has almost 20 years’ experience and works primarily with multi- national companies across all industries to set up optimal legal structures for their investments and intended principal activities in Indonesia. With his team of qualified lawyers, accountants, payroll and tax professionals, Vinod assists companies in the area of corporate compliance, allowing these companies to focus on core operations.

Get in touch with Vinod or his team to discuss how to grow your Indonesia business [email protected]

Whilst we have taken reasonable steps to provide accurate and up to date information in this publication, we do not give any warranties or representations, whether express or implied, in this respect. The information is subject to change without notice. The information contained in this publication is subject to changes in (tax) laws in different jurisdictions worldwide. None of the information contained in this publication constitutes an offer or solicitation for business, a recommendation with respect to our services, a recommendation to engage in any transaction or to engage us as a legal, tax, financial, investment or accounting advisor. No action should be taken on the basis of this information without first seeking independent professional advice. We shall not be liable for any loss or damage whatsoever arising as a result of your use of or reliance on the information contained herein. This is a publication of TMF Group B.V., P.O. Box 23393, 1100 DW , the (contact@ tmf-group.com). TMF Group B.V. is part of TMF Group, consisting of a number of companies worldwide. Any group company is not a registered agent of another group company. A full list of the names, addresses and details of the regulatory status of the companies are available on our website: www.tmf-group.com. © 2014 TMF Group B.V.

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