Doing Business in Indonesia VS Netherlands – A Comparison
Entrepreneurs and investors often face a tough decision when choosing the ideal location for their business ventures in Asia or Europe. Both Indonesia and the Netherlands present unique opportunities, making the decision even more challenging. While Indonesia offers a competitive business landscape, high quality of life, and lower costs for setting up smaller businesses, the Netherlands is known for its strong global connectivity, advanced infrastructure, and investor-friendly policies. This article aims to provide a detailed comparison to help you make an informed decision.
Key Comparison Points
Business Environment
- Indonesia: Indonesia has a growing economy with political stability and government initiatives aimed at supporting foreign investment, such as the Omnibus Law to simplify regulations.
- Netherlands: The Netherlands boasts a highly developed legal framework, political stability, and a pro-business government that actively encourages foreign investment through incentives.
Taxation
- Indonesia: Indonesia offers a corporate tax rate of 22% with tax incentives for small and medium enterprises, as well as reduced rates for certain industries.
- Netherlands: The Netherlands has a corporate tax rate of 25.8%, but it provides significant tax benefits for innovation and research and development (R&D) activities.
Ease of Company Incorporation
- Indonesia: Setting up a business in Indonesia has become easier with digitalized processes and simplified regulations under the Omnibus Law, though some sectors still require local partnerships.
- Netherlands: The Netherlands offers a highly efficient incorporation process with advanced digital infrastructure, making it seamless for foreign investors to establish businesses.
Cost of Living and Business Operations
- Indonesia: Indonesia is known for its lower operational costs, affordable office spaces, and a cost-effective lifestyle, making it ideal for small to medium-sized businesses.
- Netherlands: The Netherlands has higher operational costs and living expenses, but its developed infrastructure and high-quality services justify the investment for larger businesses.
Access to Markets
- Indonesia: Indonesia is strategically located in Southeast Asia, providing access to a large domestic market and regional trade agreements like ASEAN Free Trade Area (AFTA).
- Netherlands: The Netherlands serves as a gateway to Europe with excellent global connectivity and access to the EU single market, making it a hub for international trade.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
Indonesia |
Netherlands |
Business Environment |
Growing economy with government support for foreign investment. |
Highly developed legal framework and pro-business policies. |
Corporate Tax Rate |
22% |
25.8% |
Capital Gains Tax |
Subject to corporate income tax rules. |
Generally exempt for substantial shareholdings. |
Ease of Incorporation |
Simplified processes under the Omnibus Law. |
Highly efficient with advanced digital systems. |
Business Costs |
Lower operational costs and affordable living expenses. |
Higher operational costs but excellent infrastructure. |
Market Access |
Strategic location in Southeast Asia with access to ASEAN markets. |
Gateway to Europe with access to the EU single market. |

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, easier setup for small businesses, and access to Southeast Asian markets, making it more cost-effective for startups than the Netherlands.
Indonesia’s corporate tax is 22% with incentives for certain industries, while the Netherlands applies a 25.8% rate but offers strong benefits for innovation and 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.