Doing Business in Indonesia VS Malta – A Comparison
Entrepreneurs and investors often face a tough decision when choosing the ideal location for their business ventures. Both Indonesia and Malta present unique opportunities, each with its own set of advantages and challenges. While Indonesia is known for its competitive business landscape, high quality of life, and lower costs for setting up smaller businesses, Malta offers a strategic location in the Mediterranean, coupled with strong ties to the European Union. This article compares the two destinations to help you make an informed decision about where to establish or expand your business.
Key Comparison Points
Business Environment
- Indonesia: Indonesia boasts a politically stable environment with government initiatives aimed at attracting foreign investments, such as the Omnibus Law that simplifies regulations.
- Malta: Malta offers a robust legal framework and political stability, being a member of the European Union, which ensures access to EU regulations and protections.
Taxation
- Indonesia: Corporate tax rates in Indonesia are set at 22%, with various tax incentives available for industries like manufacturing, technology, and renewable energy.
- Malta: Malta has a corporate tax rate of 35%, but it offers significant tax refunds for shareholders, making it attractive for holding companies and international businesses.
Ease of Company Incorporation
- Indonesia: The incorporation process in Indonesia has been streamlined through digital platforms, but it still requires navigating local regulations and language barriers.
- Malta: Malta provides a straightforward incorporation process with strong digital infrastructure, allowing businesses to register and operate efficiently within the EU framework.
Cost of Living and Business Operations
- Indonesia: Indonesia offers low operational costs, affordable office spaces, and a cost of living that is highly favorable for small and medium-sized businesses.
- Malta: While Malta has higher operational costs and living expenses, it compensates with access to a skilled workforce and proximity to European markets.
Access to Markets
- Indonesia: Indonesia provides access to a growing consumer market in Southeast Asia and is part of trade agreements such as ASEAN, RCEP, and others.
- Malta: Malta serves as a gateway to European markets and has strong connectivity to North Africa and the Middle East, making it a strategic hub for international trade.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor |
Indonesia |
Malta |
Business Environment |
Politically stable with government support for foreign investments. |
Stable EU member with strong legal frameworks. |
Corporate Tax Rate |
22% |
35% (with tax refunds for shareholders). |
Capital Gains Tax |
Subject to specific conditions and exemptions. |
Generally exempt under certain EU directives. |
Ease of Incorporation |
Streamlined but requires navigating local regulations. |
Efficient and aligned with EU standards. |
Business Costs |
Low operational and living costs. |
Higher costs but access to skilled labor. |
Market Access |
Growing Southeast Asian market and trade agreements. |
Access to EU, North Africa, and Middle Eastern markets. |

Benefits of Choosing 3E Accounting
Whether you’re looking to register a company in Indonesia or start a business in Indonesia, 3E Accounting offers unparalleled expertise and support. From seamless incorporation to comprehensive business solutions, our team ensures a hassle-free experience for entrepreneurs and investors.
Explore our Indonesia company incorporation services package to understand how we can assist you. For more guidance, check out our guide on registering a company in Indonesia. Ready to take the next step? 3E Accounting is here to help. Contact us today to get started.
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Frequently Asked Questions
Indonesia provides a stable and pro-investment environment with reforms like the Omnibus Law. Malta, being an EU member, offers legal protection and access to European markets. If you’re evaluating opportunities, our guide to setup Indonesia business is a helpful resource.
Yes, Indonesia’s corporate tax rate is 22%, compared to Malta’s 35%. However, Malta offers tax refunds to shareholders, while Indonesia supports foreign investors through sector-based incentives. Learn more about starting a business in Indonesia.
Malta offers an efficient incorporation process under EU standards. Indonesia has improved digitally but still involves local regulatory steps. Read our detailed guide on company registration in Indonesia.
Indonesia connects you to the Southeast Asian region and major trade blocs. Malta serves as a hub for European, North African, and Middle Eastern markets. Investors interested in Asia should explore company incorporation in Indonesia.
The Indonesian government offers incentives, simplified regulations, and sector-specific benefits. You can find support through investment opportunities in Indonesia promoted by government platforms.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.