Doing Business in Indonesia VS Italy – A Comparison
Entrepreneurs and investors often face a tough decision when choosing between two attractive business destinations. Indonesia and Italy are both compelling options, each offering unique advantages that appeal to different types of businesses and industries. While Indonesia is praised for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Italy stands out for its rich cultural heritage, advanced infrastructure, and access to the European market. This article explores the key factors to consider when deciding between Indonesia and Italy as your next business destination.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a stable political environment with increasing government support for foreign investments, particularly in sectors like manufacturing and technology.
- Italy: Italy provides a well-established legal framework and advanced infrastructure but faces occasional political fluctuations that may impact business operations.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and offers various tax incentives for foreign investors in priority sectors.
- Italy: Italy’s corporate tax rate is 24%, and it provides tax credits for research and development activities, making it attractive for innovation-driven businesses.
Ease of Company Incorporation
- Indonesia: The incorporation process in Indonesia has become more streamlined with the introduction of digital services, though some regulatory hurdles remain.
- Italy: Setting up a business in Italy is straightforward, but it involves navigating a bureaucratic system that may require additional time and resources.
Cost of Living and Business Operations
- Indonesia: Indonesia offers lower operational costs, affordable office spaces, and a relatively low cost of living, making it ideal for small and medium-sized businesses.
- Italy: Italy has higher operational costs and living expenses, particularly in major cities, which may be a challenge for startups or small businesses.
Access to Markets
- Indonesia: Indonesia’s strategic location in Southeast Asia provides access to a rapidly growing regional market and strong trade agreements with neighboring countries.
- Italy: Italy serves as a gateway to the European Union, offering businesses access to one of the largest and most developed markets in the world.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Italy |
Business Environment |
Stable political environment with increasing government support for foreign investments. |
Well-established legal framework but occasional political fluctuations. |
Corporate Tax Rate |
22% |
24% |
Capital Gains Tax |
Varies by asset type, generally favorable for investors. |
Flat rate of 26% on capital gains. |
Ease of Incorporation |
Streamlined digital services but with some regulatory hurdles. |
Straightforward process but involves navigating bureaucracy. |
Business Costs |
Lower operational costs and affordable living expenses. |
Higher operational costs and living expenses, especially in major cities. |
Market Access |
Strategic location in Southeast Asia with access to growing regional markets. |
Gateway to the European Union and access to developed 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
Indonesia offers lower operational costs and easier access to Southeast Asian markets, which makes it ideal for small to medium-sized enterprises. You can learn more from the starting a business in Indonesia guide.
Indonesia has simplified its incorporation process with digital platforms, but there are still some regulatory hurdles. Refer to the company registration in Indonesia guide for full details.
Indonesia has a 22% corporate tax rate while Italy imposes a 24% rate. Learn more about the company incorporation advantages in Indonesia.
3E Accounting is the leading corporate service provider offering complete support from incorporation to compliance.
Our services include company formation, accounting, taxation, and secretarial support tailored for new businesses.
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.