Doing Business in Indonesia VS Croatia – A Comparison
For entrepreneurs and investors looking to establish or expand their businesses in Asia or Europe, the decision of where to set up shop is never easy. Indonesia and Croatia are two countries that offer unique opportunities, but each comes with its own set of challenges and benefits. While Indonesia is praised for its competitive business landscape, high quality of life, and lower costs for setting up smaller businesses, Croatia provides access to the European Union market and a robust legal framework. This article explores the key factors to help you make an informed decision between these two promising destinations.
Key Comparison Points
Business Environment
- Indonesia: Indonesia boasts political stability and a growing economy, with government initiatives aimed at attracting foreign investors and simplifying business regulations.
- Croatia: Croatia offers a stable legal framework as part of the European Union, with strong government support for businesses looking to access the EU market.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and offers various tax incentives for foreign investors, including exemptions in certain industries.
- Croatia: Croatia has a lower corporate tax rate of 18% and provides tax relief for businesses operating in underdeveloped regions or engaging in R&D activities.
Ease of Company Incorporation
- Indonesia: The incorporation process in Indonesia has been streamlined with digital infrastructure and government support, although regulatory compliance can still be complex for some industries.
- Croatia: Croatia offers a straightforward incorporation process, especially for EU citizens, with clear legal requirements and strong digital infrastructure.
Cost of Living and Business Operations
- Indonesia: Indonesia is known for its affordable operational costs, including office space and living expenses, making it ideal for small to medium businesses.
- Croatia: Croatia has relatively higher living and operational costs compared to Indonesia, but it remains competitive within the European Union.
Access to Markets
- Indonesia: Indonesia’s strategic location provides access to the ASEAN market, with numerous trade agreements enhancing its global connectivity.
- Croatia: Croatia benefits from being an EU member, offering businesses access to the entire European market and free trade agreements within the bloc.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Croatia |
Business Environment |
Political stability and growing economy with government support for investors. |
Stable legal framework and access to the EU market. |
Corporate Tax Rate |
22% |
18% |
Capital Gains Tax |
Varies by sector and investment type. |
Flat capital gains tax rate of 12%. |
Ease of Incorporation |
Streamlined processes with digital infrastructure, though some industries face regulatory complexities. |
Straightforward incorporation process, especially for EU citizens. |
Business Costs |
Lower operational and living costs, ideal for SMEs. |
Higher costs compared to Indonesia but competitive within the EU. |
Market Access |
Strategic access to ASEAN markets and global trade agreements. |
Access to the European Union market and free trade agreements within the EU. |

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
To begin starting a business in Indonesia, you need to choose a legal entity, register through the OSS system, obtain relevant licenses, and ensure compliance with local tax laws.
Yes, company incorporation in Indonesia is typically more affordable due to lower operational, labor, and infrastructure costs.
You can contact 3E Accounting directly for personalized advice or to request a company incorporation package tailored to your business goals.
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.