Doing Business in Indonesia VS Costa Rica – A Comparison
Entrepreneurs and investors often face a tough decision when choosing between two promising business destinations. Indonesia and Costa Rica both stand out as attractive options, offering unique advantages that cater to different business needs. While Indonesia is known for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Costa Rica is praised for its political stability, eco-friendly initiatives, and strong focus on innovation. This article dives into 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 ongoing reforms to improve the ease of doing business.
- Costa Rica: Costa Rica is politically stable with a well-established legal framework, making it a secure option for investors seeking long-term opportunities.
Taxation
- Indonesia: Corporate tax rates are generally set at 22%, with various tax incentives available for businesses in priority sectors and special economic zones.
- Costa Rica: Corporate tax rates vary based on income levels, with a progressive tax system and generous tax exemptions for companies in free trade zones.
Ease of Company Incorporation
- Indonesia: Incorporating a company in Indonesia involves a straightforward process, supported by an improving digital infrastructure and a growing regulatory framework.
- Costa Rica: Costa Rica has a relatively simple incorporation process, with user-friendly online systems and clear regulatory guidelines for foreign investors.
Cost of Living and Business Operations
- Indonesia: Indonesia offers low operational costs, affordable office spaces, and a cost-effective lifestyle, making it ideal for startups and small businesses.
- Costa Rica: Costa Rica’s operational costs are higher, but the country offers a high standard of living and access to skilled labor, particularly in technology and services sectors.
Access to Markets
- Indonesia: Indonesia’s strategic location in Southeast Asia provides access to a vast regional market and numerous trade agreements with neighboring countries.
- Costa Rica: Costa Rica benefits from its proximity to North and South America, as well as free trade agreements with major economies like the United States and the European Union.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Costa Rica |
Business Environment |
Dynamic, with strong government support and ongoing reforms |
Politically stable with a well-established legal framework |
Corporate Tax Rate |
22% |
Progressive rates based on income levels, ranging from 10% to 30% |
Capital Gains Tax |
Varies depending on the sector and type of investment |
Lower or exempted for businesses in free trade zones |
Ease of Incorporation |
Straightforward with improving digital infrastructure |
Simple process with user-friendly online systems |
Business Costs |
Low operational costs and affordable living expenses |
Higher operational costs but access to skilled labor |
Market Access |
Strategic location in Southeast Asia with vast regional opportunities |
Proximity to North and South America with strong 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.
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Frequently Asked Questions
The process of starting a business in Indonesia includes selecting a business structure, registering through the OSS system, obtaining licenses, and fulfilling tax and compliance obligations. You can find more details in the Complete Guide to Start A Business in Indonesia.
You can contact 3E Accounting to discuss your business goals and receive expert guidance on company formation 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.