Doing Business in Indonesia VS United Arab Emirates – A Comparison
Entrepreneurs and investors often face a tough decision when choosing the best location to establish or expand their businesses in Asia. Both Indonesia and the United Arab Emirates (UAE) offer unique advantages, making the choice challenging. While Indonesia is renowned for its competitive business landscape, high quality of life, and lower costs for setting up smaller businesses, the UAE is celebrated for its strategic location, tax-free zones, and advanced infrastructure. This article aims to compare these two vibrant destinations to help you make an informed decision.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a stable political environment with government initiatives aimed at supporting foreign investments, particularly in sectors like manufacturing and technology.
- United Arab Emirates: The UAE boasts a highly supportive business environment with world-class legal frameworks and free zones that cater to international businesses.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and offers various tax incentives for businesses operating in special economic zones.
- United Arab Emirates: The UAE is well-known for its tax-free zones, where businesses enjoy 0% corporate tax and no capital gains tax.
Ease of Company Incorporation
- Indonesia: The incorporation process in Indonesia has been streamlined with digital infrastructure and government efforts to simplify regulatory requirements.
- United Arab Emirates: The UAE offers an exceptionally fast incorporation process, especially in free zones, with minimal regulatory hurdles.
Cost of Living and Business Operations
- Indonesia: Indonesia provides lower operational costs, affordable office spaces, and a relatively low cost of living, making it ideal for smaller businesses.
- United Arab Emirates: The UAE has higher operational and living costs, but these are offset by its advanced infrastructure and premium business environment.
Access to Markets
- Indonesia: Indonesia’s strategic location in Southeast Asia provides access to a large domestic market and regional trade agreements, making it a gateway to ASEAN markets.
- United Arab Emirates: The UAE serves as a global hub, connecting Asia, Europe, and Africa, with strong trade agreements and world-class logistics.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
United Arab Emirates |
Business Environment |
Stable political environment with government support for foreign investments. |
Highly supportive with free zones and advanced legal frameworks. |
Corporate Tax Rate |
22% |
0% in free zones. |
Capital Gains Tax |
Applicable. |
Not applicable in free zones. |
Ease of Incorporation |
Streamlined with digital infrastructure and simplified regulations. |
Fast and efficient, especially in free zones. |
Business Costs |
Lower operational costs and affordable living expenses. |
Higher costs but with premium infrastructure. |
Market Access |
Gateway to ASEAN markets with strong regional trade agreements. |
Global hub connecting Asia, Europe, and Africa. |

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
The process for starting a business in Indonesia includes choosing a business structure, registering via the OSS platform, obtaining licenses, and fulfilling tax and regulatory obligations.
Indonesia has a more structured process supported by digital tools, while the UAE offers a faster and more flexible system, especially in free zones. You can refer to this company registration in Indonesia guide for more.
Yes. Company incorporation in Indonesia is generally more affordable due to lower labor, rental, and operational costs compared to the UAE.
To begin your incorporation journey, simply contact 3E Accounting for a consultation tailored to your business goals in Indonesia.
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.