Doing Business in Indonesia VS Oman – A Comparison
When it comes to expanding or establishing a business in Asia, entrepreneurs and investors often face a tough decision: should they choose Indonesia or Oman as their preferred destination? Both countries offer unique advantages that cater to different business needs, making the choice a challenging one. Indonesia is renowned for its competitive business landscape, high quality of life, and lower costs for setting up smaller businesses. On the other hand, Oman boasts a stable economy, strategic location, and a business-friendly environment that attracts global investors. This article will provide a detailed comparison to help you make an informed decision.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a dynamic business environment with strong government support for foreign investments and a growing economy. However, navigating its legal framework can be complex for new investors.
- Oman: Oman provides a politically stable and transparent business environment, with clear regulations and policies designed to attract international investors.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and offers tax incentives for certain industries, such as manufacturing and technology.
- Oman: Oman has a corporate tax rate of 15%, which is lower than Indonesia, and provides tax exemptions in free zones to encourage foreign investments.
Ease of Company Incorporation
- Indonesia: Indonesia’s incorporation process has improved significantly, with digital infrastructure supporting online company registration. However, regulatory compliance can still be time-consuming.
- Oman: Oman has a streamlined incorporation process, with minimal bureaucracy and efficient government services for setting up businesses.
Cost of Living and Business Operations
- Indonesia: Indonesia offers lower operational costs, affordable office spaces, and a relatively low cost of living, making it ideal for small and medium-sized enterprises.
- Oman: Oman has higher operational costs compared to Indonesia, but it provides modern infrastructure and high-quality facilities for businesses.
Access to Markets
- Indonesia: Indonesia’s strategic location in Southeast Asia provides access to a large regional market and benefits from trade agreements within ASEAN.
- Oman: Oman’s location at the crossroads of Asia, Africa, and the Middle East offers excellent global connectivity and access to key trade routes.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Oman |
Business Environment |
Dynamic, with strong government support but complex regulations. |
Stable and transparent, with clear policies for investors. |
Corporate Tax Rate |
22% |
15% |
Capital Gains Tax |
Varies depending on the type of asset. |
No capital gains tax. |
Ease of Incorporation |
Improved digital processes but still time-consuming. |
Streamlined and efficient with minimal bureaucracy. |
Business Costs |
Lower operational costs and affordable living expenses. |
Higher operational costs but modern facilities. |
Market Access |
Strong regional access within ASEAN. |
Strategic global connectivity at key trade routes. |

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 offers a lower corporate tax rate, affordable business operations, and access to ASEAN markets, making it more attractive for SMEs compared to Oman’s higher setup costs.
Indonesia has a corporate tax rate of 22% and provides incentives in special zones, while Oman offers a lower flat rate of 15% and tax exemptions in free zones.
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.