Country43 researched factors

Starting a small business in Indonesia (2026): costs, wages, rent, licences

Indonesia at a glance

Indonesia's small-business economy is the warung: home-front shops, warteg food stalls, angkringan, kaki lima street carts, barbershops, tailors and phone-counter shops. Rules are light at the national level: a free online NIB is enough for low-risk micro firms, the 0.5% final turnover tax is now permanent for individuals (first Rp 500m tax-free), and VAT applies only above Rp 4.8bn. The big new obligation is mandatory halal certification for micro and small food sellers from 17 Oct 2026, with free self-declare quotas. Minimum wages vary enormously: Jakarta Rp 5.73m/month against Central Java towns around Rp 2.3–3.7m. Subsidised Pertalite (Rp 10,000/L) and 3 kg LPG keep fuel cheap, but access is being targeted. Ramadan and the Lebaran exodus dominate the trading year, and Bali has its own calendar (Nyepi, tourism seasonality). QRIS has made digital payment cheap (0% MDR for small micro transactions), but cash and kasbon remain common.

MetroJakarta

Mid-size citySemarang

Small townPurwokerto

Business ideas in Indonesia

Indonesia at a glance

Cities used for the three sizes: Jakarta · Semarang · Purwokerto

	Indonesia
Minimum wage, monthly	Rp 3,7 jt
Unskilled day wage	Rp 120.000Estimate
Shop rent, metro (per sq ft/month)	Rp 20.000Estimate
Shop rent, mid-size city	Rp 8.000Estimate
Shop rent, small town	Rp 3.500Estimate
Commercial power, per kWh	Rp 1.445
Commercial LPG cylinder	Rp 195.000Estimate
Petrol, per litre	Rp 10.000
Cup of tea / coffee	Rp 5.000
Simple meal	Rp 15.000Estimate
Men's haircut	Rp 25.000Estimate
Milk, 1 litre	Rp 20.000Estimate
Bread loaf	Rp 18.000Estimate

Taxes

Sales Tax	PPN 12% nominal (effective 11% on non-luxury goods via 11/12 tax base since Jan 2025); PKP (VAT) registration above Rp 4.8 billion turnover
Small Biz Threshold	PPh Final 0.5% of turnover up to Rp 4.8 billion/yr for individuals, PT Perorangan and cooperatives, now without time limit (PP 20/2026); individuals' first Rp 500 million/yr turnover tax-free
Local Levies	Regional PBJT (restaurant tax) 10% on food & beverage outlets above local turnover thresholds; retribusi for market stalls, waste, signage; informal 'uang keamanan'/parking levies

Licences and registrations

Rules vary by state and city: confirm with your municipal office.

Licences and registrations	Fee	Authority	Source
NIB (Business Identification Number) via OSS-RBA	Free; online same day; low-risk micro firms need only NIB	Ministry of Investment / BKPM (OSS)	Est.: PP 5/2021 risk-based licensing; NIB issuance is free
Halal certificate (food & beverage)	Free via SEHATI self-declare quota for micro firms; ≈ Rp 300,000–650,000 otherwise (estimate); mandatory for MSE food sellers from 17 Oct 2026	BPJPH (Halal Product Assurance Agency)	Est.: PP 42/2024 moved the micro/small enterprise halal deadline to 17 Oct 2026; fees from BPJPH tariff decree, not re-checked
SPP-IRT (home-industry packaged food permit)	Free–low; issued by district health office after food safety training	Dinas Kesehatan (district)	Est.: BPOM Reg. 22/2018
PT Perorangan (individual limited company)	≈ Rp 50,000 PNBP via AHU Online (estimate)	Ministry of Law (AHU)	Est.: PP 8/2021 fee schedule
NPWP (tax ID; NIK used as NPWP)	Free	Directorate General of Taxes (DJP)	Est.: PMK 112/2022 NIK-as-NPWP
Sertifikat Laik Higiene Sanitasi (restaurants/catering)	≈ Rp 0–500,000, varies by region (estimate)	Dinas Kesehatan	Est.: Permenkes 14/2021

Festivals and demand

Festivals and demand	Dates (2026–27)	Effect on trade
Ramadan	about 8 Feb – 9 Mar 2027	Daytime warung sales fall; 'takjil' and iftar food stalls boom in late afternoon; Ramadan markets
Idul Fitri (Lebaran) and mudik	about 10–11 Mar 2027; collective leave a week around it	THR bonus (one month's wage) due H-7; peak spending before, then many warung shut 1–2 weeks as owners and staff go home; Jakarta empties
Idul Adha	about 16–17 May 2027	Livestock trade spikes; satay/food demand up
Nyepi (Bali)	March 2027 (Saka new year)	Bali shuts completely for 24 h; no trading, airport closed
Christmas / New Year and school holidays	late Dec 2026 – early Jan 2027	Tourist areas (Bali, Yogyakarta) peak; Jakarta quieter
Independence Day	17 Aug 2027	Neighbourhood festivities, flag and snack sales up

Seasons and weather

Nov–Mar · Rainy season: Jakarta floods (peak Jan–Feb) shut markets and cut supply; landslides inland
Apr–Oct · Dry season: good trading weather, haze in Sumatra/Kalimantan some years

How people pay

DigitalShare · QRIS accepted by tens of millions of micro merchants; e-wallets GoPay, OVO, DANA, ShopeePay common in cities, but warung and pasar sales still mostly cash (estimate 60–75% cash)
Credit · 'Kasbon' tab credit for neighbours; arisan savings groups; KUR subsidised loans (6% p.a.) and fintech/pinjol lending

Where costs and rules differ most

DKI Jakarta · Highest UMP (Rp 5.73m), highest rents, plastic-bag ban, flood risk, strict PKL enforcement
Bali · Tourism-driven prices and seasonality, Nyepi shutdown, plastic ban, tourist levy
East Java (Surabaya) · Low provincial UMP but Surabaya UMK ≈ Rp 5.2m+; large industrial city vs cheap rural kabupaten
West Java (Bandung, Bekasi) · Huge UMK spread (Bekasi/Karawang among highest, rural West Java lowest)
Central Java · Among the lowest minimum wages; dense warung/angkringan economy
DI Yogyakarta · Low wages, student and tourist demand, angkringan culture
Aceh · Sharia law: no alcohol, dress and trading-hour rules during prayer times

43 researched factors

JSON · Source · Estimate

43 researched factors
Factor	Typical value in India	Source
UMP DKI Jakarta 2026	Rp 5,729,876/month (+6.17%), applies across Jakarta	ekonomi.bisnis.com
UMP East Java / Bali 2026	Jawa Timur Rp 2,446,881; Bali Rp 3,207,459 (+7.03%)	ekonomi.bisnis.com
UMK Surabaya 2026	≈ Rp 5.2–5.3m (2025: Rp 4,961,753 + ~6.5%)Estimate	ekonomi.bisnis.com
UMK Semarang 2026 (T2)	≈ Rp 3.68m/monthEstimate	Est.: 2025 UMK Semarang ≈ Rp 3,454,827…
Wage rule basis	PP 49/2025 on wages, signed 17 Dec 2025, effective 1 Jan 2026; average rise ~6.5%	industry.co.id
Micro-business wage exemption	Micro and small enterprises may pay below minimum wage by agreement (PP 36/2021); warung helpers ≈ Rp 1.5–2.5m + meals/lodgingEstimate	Est.: PP 36/2021 art. 36 and informal …
Casual day wage (Semarang)	≈ Rp 100,000–150,000/dayEstimate	Est.: buruh harian rates in Central Java
THR (religious holiday bonus)	One month's wage for staff with 12+ months, due 7 days before the holidayEstimate	Est.: Permenaker 6/2016
Kios/ruko rent T1 Jakarta	≈ Rp 20,000/sq ft/month (≈ Rp 200k/m²); usually paid yearly upfrontEstimate	Est.: Jakarta kios listings Rp 30–80m/…
Rent T2 Semarang / T3 Purwokerto	≈ Rp 8,000 / 3,500 per sq ft/month; many warung run from home (zero rent)Estimate	Est.: ~40% / 18% of Jakarta
PLN business tariff B-2 (6,600 VA–200 kVA)	Rp 1,444.70/kWh; unchanged for Q4 2026	journalarta.com
Small connections (≤ 5,500 VA)	Most warung use household 900–2,200 VA meters at ≈ Rp 1,350–1,450/kWh prepaid tokensEstimate	Est.: PLN household non-subsidised rat…
Pertalite / Biosolar (subsidised)	Rp 10,000 / Rp 6,800 per litre, unchanged Oct 2026	rctiplus.com
Pertamax / Dexlite (non-subsidised)	Pertamax Rp 15,950 (Java); Dexlite Rp 23,700 (raised Sep 2026)	ekonomi.bisnis.com
LPG: 3 kg subsidised vs 12 kg	3 kg 'melon' ≈ Rp 19,000–23,000 (registered buyers, for households/micro); 12 kg ≈ Rp 195,000Estimate	Est.: HET Rp 19,000 at agents in 2025;…
Warteg/nasi rames meal	≈ Rp 13,000–18,000 Semarang; Rp 18,000–25,000 JakartaEstimate	Est.: warteg prices 2025 + ~3% inflation
Es teh / teh manis	≈ Rp 4,000–6,000 at warungEstimate	Est.: warung prices
Men's haircut	Pangkas rambut ≈ Rp 20,000–30,000; barbershop Rp 40,000–80,000Estimate	Est.: market rates
Milk and bread	UHT milk 1 L ≈ Rp 20,000; white loaf (Sari Roti) ≈ Rp 17,000–19,000Estimate	Est.: minimarket prices 2025
Exchange rate	≈ Rp 16,700/$Estimate	Est.: rupiah traded Rp 16,300–17,000 t…
NIB via OSS	Free, online, same day; low-risk micro needs NIB onlyEstimate	Est.: PP 5/2021
Mandatory halal certification for MSE food	Deadline 17 Oct 2026; free SEHATI self-declare quota; sanctions from warnings to withdrawalEstimate	Est.: PP 42/2024 (extension from 2024 …
PPh Final 0.5% (UMKM)	0.5% of turnover up to Rp 4.8bn, permanent for individuals/PT Perorangan/cooperatives (PP 20/2026); CV/PT lose it	idnfinancials.com
Rp 500m tax-free turnover	Individuals pay nothing on first Rp 500m turnover a year	ikpi.or.id
VAT (PPN)	12% nominal, 11% effective non-luxury; PKP above Rp 4.8bnEstimate	Est.: UU HPP 7/2021 and PMK 131/2024
PBJT restaurant tax	10% regional tax on F&B outlets above local thresholds (UU HKPD 1/2022); small warung usually belowEstimate	Est.: UU 1/2022 caps PBJT at 10%
QRIS	MDR 0% for micro merchants on transactions ≤ Rp 500,000; 0.3% above (estimate)Estimate	Est.: Bank Indonesia policy from Dec 2…
Kasbon and arisan	Tab credit for neighbours; arisan rotating savings fund stockEstimate	Est.: common practice
KUR micro loans	Up to Rp 100m without collateral at 6% p.a. (subsidised)Estimate	Est.: KUR 2025 scheme terms
Common small businesses	Warung kelontong, warteg, angkringan, kaki lima carts (bakso, gorengan), pangkas rambut, salon, penjahit (tailor), counter HP (phone repair/pulsa), laundry kiloanEstimate	Est.: BPS/KemenKopUKM MSME categories …
PKL (street vendor) zoning	Satpol PP evicts vendors from sidewalks; designated PKL zones in citiesEstimate	Est.: Perda on public order, e.g. Jaka…
Alcohol restrictions	Minimarkets barred from selling beer (Permendag 6/2015); Aceh applies ShariaEstimate	Est.: Permendag 6/2015, Aceh qanun
Plastic bag bans	Jakarta (Pergub 142/2019), Bali (Pergub 97/2018) ban single-use bags in shops/marketsEstimate	Est.: governor regulations
Rainy season	Nov–Mar; Jakarta flood peak Jan–FebEstimate	Est.: BMKG seasonal pattern
Lebaran closure	Warung shut 1–2 weeks around Idul Fitri; THR boosts pre-Lebaran sales 1.5–2×Estimate	Est.: seasonal pattern
Languages	Bahasa Indonesia; Javanese, Sundanese, Balinese locallyEstimate	Est.: general reference
Income and urbanisation	GDP/capita ≈ $5,000; ≈ 58% urbanEstimate	Est.: World Bank WDI order of magnitude
Urban flood (Jakarta)	Markets shut 1–5 days, stock lossEstimate	Est.: Jan 2020 and recurring floods
Earthquake / volcanic eruption	Bali/Lombok/Java tourism and supply disruptionEstimate	Est.: Ring of Fire history
3 kg LPG shortage	Distribution changes caused queues (Feb 2025); warung fuel cost spikesEstimate	Est.: Feb 2025 retail-sale restriction…
Satpol PP eviction	Cart or stall removed, goods seizedEstimate	Est.: recurrent enforcement
Protests / riots	Aug 2025 nationwide protests closed shops in Jakarta and other citiesEstimate	Est.: Aug 2025 events
Halal enforcement	Uncertified food sellers face warnings after 17 Oct 2026Estimate	Est.: PP 42/2024

Business ideas in Indonesia

Our 30 researched guides use Indian numbers. Indonesia-specific guides are being researched; the simulator can already use Indonesia wages and prices.