40 Most Common Indonesian Business Terms Explained in English

Get familiar with the most common Indonesia business terms and abbreviations which are used when doing business in Indonesia. Licences, permits, institutions, legal entities and many others explained at one place and in English.

API-P - Angka Pengenal Importir-Produsen

A ‘Producer Import Licence’ gives industrial companies the right to import goods that are only to be utilised for their own internal use—mainly raw materials or any other goods needed during a production process

API-U - Angka Pengenal Importir-Umum

A ‘General Import Licence’ allows companies to import goods for trading purposes

BKPM - Badan Koordinasi Penanaman Modal

Indonesia Investment Coordinating Board is an investment service agency that monitors investments of both foreign and local entrepreneurs and aims to improve the Indonesian climate for investment

BPJS - Badan Penyelenggara Jaminan Sosial

Social Security Department is divided into ‘BPJS Kesehatan’ which stands for ‘Social Security Agency for Health’ and ‘BPJS Ketenagakerjaan’ that coordinated ‘Social Security for Employment’

BPOM - Badan Pengawas Obat dan Makanan

The National Agency of Drug and Food is the governing body that controls the circulation of these products in Indonesia

BUJKA - Badan Usaha Konstruksi

Representative Office of a Foreign Construction Service Company is not allowed to make a profit in Indonesia as it is designated for research purposes in a field of construction only

Domicile Letter

Proof of a business address is required during a company registration process.

Halal

Contrary to ‘Haram’, Halal refers to what is permissible or lawful in the Islamic religion

HGB - Hak Guna Bangunan

A ‘Right to Build’ certificate which permits foreigners to build on particular kinds of land

HMASRS - Hak Milik Atas Satuan Rumah Susun

‘Right of Strata Title’ allows foreigners to own a unit of property, such as an office or an apartment, in a high-rise building without really owning the land of the property.

HP - Hak Pakai

A ‘Right to Use’ certificate allows owners of foreign-owned companies and KITAS or KITAP holders to use land in Indonesia

IMB - Izin Mendirikan Bangunan

A building permit issued to construct a building for both residential and commercial purposes

IMTA - Izin Mempekerjakan Tenaga Kerja Asing

A Work Permit allows foreigners to work in Indonesia legally and companies to employ expatriates

IU - Izin Usaha

Business Licence is an obligatory document to start a company in Indonesia

KBLI - Klasifikasi Baku Lapangan Usaha Indonesia

Business classification for economic activities in Indonesia

KITAS - Kartu Izin Tinggal Sementara

A Temporary Stay Permit Card is granted to holders of a work permit, foreigners married to an Indonesian citizen and holders of retirement visa in Indonesia

KITAP - Kartu Izin Tinggal Tetap

A Permanent Stay Permit Card that is valid for five years and can be extended several times. Granted to those who have been KITAS holders for a minimum of 2 years.

KPPA

General Representative Office of a Foreign Company is not allowed to make a profit in Indonesia as it is designated for business research purposes only

KPPA MIGAS

Representative Office of a Foreign Oil and Gas Company is not allowed to make a profit in Indonesia as it is designated for research purposes in oil and gas sector only

KP3A

Representative Office of a Foreign Trading Company is not allowed to make a profit in Indonesia as it is designated for research purposes in trading only

Negative Investment List

A list that summarises the maximum foreign ownership allowed in different business sectors.

KTP - Kartu Tanda Penduduk

Indonesian ID card

NIB - Nomor Induk Berusaha

Business Identification Number is a mandatory requirement for most of the business operating in Indonesia

NIK - Nomor Induk Kepabeanan

Customs Identification Number is an obligatory document when importing goods to Indonesia

NPWP - Nomor Pokok Wajib Pajak

An Indonesian tax number is applicable to everyone working in Indonesia and to expats staying in Indonesia for more than 183 days in the last 12 months

OSS - Online Single Submission

A new online system designed to simplify administrative processes in Indonesia

PI - Pendaftaran Investasi

Capital Investment Registration is one of the licences obtained during a company registration process

PT - Perseroan Terbatas

A local company that is designated purely to Indonesian investors

PT PMA - Perseroan Terbatas Penanaman Modal Asing

A foreign-owned company might be closed, partially open or fully open to foreign ownership. The maximum allowed percentage is based on the Negative Investment List.

RPTKA - Rencana Penempatan Tenaga Kerja Asing

Foreign Worker Recruitment  Plan is required for most of the work positions and must be presented to the Ministry of Manpower in Indonesia

SIM - Surat Izin Mengemudi

Indonesian driving license

SIUP - Surat Izin Usaha Perdagangan

A Business Trade Licence is a mandatory document for any business that intends to operate in this sector

SKA - Sertifikat Keahlian

A certificate that acknowledges the competence and expertise of an individual

SKTT - Surat Keterangan Tempat Tinggal

A Certificate of Residence issued by the Civil Registry Office

STM - Surat Tanda Melapor

A police certificate is a mandatory document for any foreigner staying in Indonesia

TDP - Tanda Daftar Perusahaan

Company Registration Certificate

Telex Visa

A visa obtained at any Indonesian embassy abroad during the application process. A foreigner will be granted a real visa when presenting a telex visa at the Immigration Office in Indonesia

THR - Tunjangan Hari Raya

Religious Holiday Allowance provided by employers for workers in Indonesia on a yearly basis

TKA - Tenaga Kerja Asing

Foreign workers in Indonesia

VITAS - Visa Tinggal Terbatas

Limited-stay visa for foreigners in Indonesia

 

Interested in doing business in Indonesia? Register your company or apply for your business visa & work permit online.

 

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