Doing Business in Indonesia VS Uruguay – A Comparison
Entrepreneurs and investors often face the dilemma of choosing the right country to establish or expand their businesses. Indonesia and Uruguay, two vastly different nations, both offer unique advantages that make the decision challenging. While Indonesia is known for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Uruguay stands out as a stable hub in South America with progressive policies and a strategic location. This article aims to compare these two countries across key factors to help you make an informed decision.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a politically stable environment with strong government support for foreign investments, particularly in sectors like manufacturing and technology.
- Uruguay: Uruguay boasts a transparent legal framework and is considered one of the most politically stable countries in South America, making it attractive for long-term investments.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and offers various tax incentives for foreign investors, especially in Special Economic Zones.
- Uruguay: Uruguay has a corporate tax rate of 25%, but its Free Trade Zones provide significant tax benefits for businesses operating within them.
Ease of Company Incorporation
- Indonesia: Indonesia has streamlined its incorporation process with digital platforms, making it easier for businesses to register and comply with regulations.
- Uruguay: Uruguay also offers a straightforward incorporation process, supported by a well-established legal and regulatory framework.
Cost of Living and Business Operations
- Indonesia: Indonesia is known for its lower operational costs, affordable office spaces, and a cost-effective lifestyle, making it ideal for small and medium-sized businesses.
- Uruguay: Uruguay has higher operational costs compared to Indonesia, but it offers a high standard of living and quality infrastructure for businesses.
Access to Markets
- Indonesia: Indonesia’s strategic location in Southeast Asia provides excellent access to global markets, supported by trade agreements with ASEAN and other regions.
- Uruguay: Uruguay serves as a gateway to South America, offering access to MERCOSUR markets and strong trade agreements with neighboring countries.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Uruguay |
Business Environment |
Politically stable with strong government support for foreign investments. |
Highly transparent legal framework and political stability in South America. |
Corporate Tax Rate |
22% |
25% |
Capital Gains Tax |
Taxed as part of corporate income, with exemptions in certain cases. |
Taxed at a flat rate of 12% for non-residents. |
Ease of Incorporation |
Streamlined digital incorporation process with government support. |
Simple incorporation process with clear legal guidelines. |
Business Costs |
Lower operational costs and affordable living expenses. |
Higher operational costs but offers quality infrastructure. |
Market Access |
Strategic location in Southeast Asia with strong trade agreements. |
Gateway to South America with access to MERCOSUR 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
You can contact 3E Accounting to speak with an expert and get professional support on starting your business 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.