Doing Business in Indonesia vs Australia – A Comparison
Entrepreneurs and investors often face a tough decision when choosing the ideal destination for their business ventures. Both Indonesia and Australia are attractive options, offering unique advantages that cater to different types of businesses and industries. While Indonesia is known for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Australia boasts political stability, a robust legal framework, and access to a highly developed market. This article explores the key factors to help investors weigh their options and make an informed decision.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a dynamic business environment with strong government support for foreign investments, though navigating its regulatory framework can be challenging for newcomers.
- Australia: Australia provides a politically stable environment with a transparent legal framework, making it one of the most business-friendly destinations in the world.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and offers tax incentives for businesses in certain sectors, such as manufacturing and renewable energy.
- Australia: Australia has a corporate tax rate of 30% (or 25% for small businesses) and provides various tax incentives for research and development activities.
Ease of Company Incorporation
- Indonesia: Incorporating a business in Indonesia involves several steps, but the government has improved digital infrastructure to streamline the process.
- Australia: Australia has a straightforward incorporation process with a strong regulatory environment and advanced digital tools for company registration.
Cost of Living and Business Operations
- Indonesia: Indonesia offers significantly lower operational costs, including affordable office space and living expenses, making it ideal for startups and small businesses.
- Australia: Australia has higher operational costs, with expensive office rentals and living expenses, but these are offset by access to a skilled workforce and advanced infrastructure.
Access to Markets
- Indonesia: Indonesia’s strategic location in Southeast Asia provides excellent access to emerging markets and strong trade agreements within the ASEAN region.
- Australia: Australia offers global connectivity and is part of several major trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Australia |
Business Environment |
Dynamic with government support but complex regulations |
Politically stable with a transparent legal framework |
Corporate Tax Rate |
22% |
30% (25% for small businesses) |
Capital Gains Tax |
Applicable but varies by sector |
Applicable with clear guidelines |
Ease of Incorporation |
Improving with digital infrastructure |
Straightforward with advanced tools |
Business Costs |
Low operational and living costs |
High operational and living costs |
Market Access |
Strong access to ASEAN markets |
Global connectivity with major trade agreements |

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.
Ready to Expand into Indonesia? Choose 3E Accounting Today!
Stay Secure, Stay Successful With 3E Accounting Services
Contact Us Now
Frequently Asked Questions
Indonesia offers a lower cost of doing business, access to ASEAN markets, and government incentives. Australia provides a transparent legal system, global market access, and a skilled workforce, though at higher operational costs.
Indonesia has a corporate tax rate of 22% and offers sector-specific incentives. Australia’s rate is 30% for large firms and 25% for small businesses, with additional incentives for R&D activities.
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.