Doing Business in Indonesia VS Puerto Rico – A Comparison
Entrepreneurs and investors looking to expand their businesses in Asia or the Americas often face a tough decision: should they choose Indonesia or Puerto Rico as their preferred destination? Both locations offer unique advantages, making the choice challenging. Indonesia is known for its competitive business landscape, high quality of life, and lower costs for setting up smaller businesses. Meanwhile, Puerto Rico attracts investors with its proximity to the U.S. market, favorable tax incentives, and strategic location in the Caribbean. This article provides a detailed comparison to help you decide which destination aligns better with your business goals.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a stable political environment and a growing economy, supported by government initiatives to attract foreign investment.
- Puerto Rico: Puerto Rico benefits from its association with the United States, offering a reliable legal framework and strong government support for businesses.
Taxation
- Indonesia: Indonesia has a corporate tax rate of 22% and provides tax incentives for specific industries and investments in special economic zones.
- Puerto Rico: Puerto Rico offers highly attractive tax incentives, including a corporate tax rate as low as 4% under certain programs, making it a tax haven for many businesses.
Ease of Company Incorporation
- Indonesia: Indonesia has streamlined its incorporation process in recent years, with improved digital infrastructure and a more business-friendly regulatory environment.
- Puerto Rico: Puerto Rico provides a relatively straightforward incorporation process, with the added benefit of operating under U.S. legal and regulatory frameworks.
Cost of Living and Business Operations
- Indonesia: Indonesia is known for its affordable operational costs, including low office rental rates and reasonable living expenses, particularly for small and medium enterprises.
- Puerto Rico: Puerto Rico has higher operational costs compared to Indonesia, but it remains competitive due to its lower cost of living compared to mainland U.S. cities.
Access to Markets
- Indonesia: Indonesia provides strategic access to the ASEAN market, with numerous trade agreements and a large domestic consumer base.
- Puerto Rico: Puerto Rico serves as a gateway to the U.S. market and the broader Latin American region, benefiting from excellent global connectivity and trade agreements.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Key Factors |
Indonesia |
Puerto Rico |
Business Environment |
Stable political environment with growing government initiatives. |
U.S.-associated legal framework with strong government support. |
Corporate Tax Rate |
22% |
As low as 4% under specific programs. |
Capital Gains Tax |
Varies based on investment type; incentives available. |
Highly favorable, with exemptions for certain investments. |
Ease of Incorporation |
Streamlined process with improved digital infrastructure. |
Simple process under U.S. regulatory frameworks. |
Business Costs |
Low operational costs and affordable living expenses. |
Moderate operational costs, lower than mainland U.S. |
Market Access |
Strategic access to ASEAN and a large domestic market. |
Gateway to U.S. and Latin American 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 a stable economy with increasing foreign investment initiatives, while Puerto Rico benefits from U.S.-backed legal protections and government business incentives.
Puerto Rico provides rates as low as 4% under certain programs, while Indonesia offers a 22% rate with targeted industry incentives. Learn more about starting a business in Indonesia with incentives in special economic zones.
Indonesia has improved its digital infrastructure to simplify incorporation. Puerto Rico offers a straightforward process under U.S. legal frameworks. Refer to our company registration in Indonesia guide for full steps.
Indonesia is well-positioned for access to ASEAN and Asian markets, while Puerto Rico acts as a U.S. and Latin American gateway. Businesses interested in Asia may benefit more from company incorporation 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.