Doing Business in Indonesia VS Cambodia – A Comparison
Choosing the right destination for your business expansion can be a challenging decision, especially when comparing two promising countries like Indonesia and Cambodia. Both nations offer unique advantages that attract entrepreneurs and investors aiming to establish or grow their businesses in Asia. While Indonesia is known for its competitive landscape, high quality of life, and cost-effective setup for smaller businesses, Cambodia boasts a rapidly developing economy with growing opportunities for foreign investments. This article explores the key factors to help you make an informed decision.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a stable political environment with a well-established legal framework and government support for foreign investors.
- Cambodia: Cambodia is a developing economy with a relatively stable political climate but has a less mature legal framework compared to Indonesia.
Taxation
- Indonesia: The corporate tax rate in Indonesia is 22%, with various tax incentives available for priority sectors and foreign investments.
- Cambodia: Cambodia offers a lower corporate tax rate of 20%, along with tax holidays and exemptions for businesses in special economic zones.
Ease of Company Incorporation
- Indonesia: Registering a business in Indonesia can be streamlined through digital platforms, but regulatory requirements can be complex for foreign investors.
- Cambodia: Cambodia provides a relatively simple incorporation process, but digital infrastructure for business registration is still underdeveloped.
Cost of Living and Business Operations
- Indonesia: Indonesia offers affordable operational costs, including office space and living expenses, making it attractive for startups and small businesses.
- Cambodia: Cambodia also has low operational costs, but the quality of infrastructure and services may not match Indonesia’s standards.
Access to Markets
- Indonesia: Indonesia’s strategic location and membership in ASEAN provide excellent global connectivity and access to regional trade agreements.
- Cambodia: Cambodia benefits from its ASEAN membership and preferential trade agreements with key markets, but its connectivity is less developed compared to Indonesia.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Cambodia |
Business Environment |
Stable political environment with a robust legal framework. |
Developing economy with a less mature legal framework. |
Corporate Tax Rate |
22% |
20% |
Capital Gains Tax |
Applicable, with exemptions for certain investments. |
Generally not applicable. |
Ease of Incorporation |
Streamlined but with complex regulatory requirements. |
Simple incorporation process but limited digital infrastructure. |
Business Costs |
Affordable operational and living costs. |
Low costs but with limited infrastructure quality. |
Market Access |
Excellent global connectivity and trade agreements. |
Good access to ASEAN markets but less developed connectivity. |

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
You can easily contact 3E Accounting through our website for expert help on incorporating or managing 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.