Picking the Best Cities for Foreign Company Registration in Indonesia: Why Bali and Jakarta Are Great Choices?

So, you’ve decided to start a company in Indonesia. Great move. But here’s a question that often gets overlooked: Where should you set up your business?

This isn’t just about paperwork. It’s about access, reputation, operations, and future scalability. Whether you’re planning to expand regionally or establish a long-term brand presence, where you register PT PMA can shape how partners, clients, and even regulators perceive you.

In this article, we’ll focus on why Jakarta and Bali are top picks for foreign company registration in Indonesia, and which setup supports your business model better.

Jakarta, Indonesia’s Business Backbone

Jakarta isn’t just the country’s capital in the political sense. It is also the center of business, regulation, decision-making, and corporate activity. The city houses the headquarters of most state-owned enterprises, international banks, regulatory bodies, and major professional service providers.

If you’re building a company that will interact with the Indonesian government, seek licenses, manage high-level operations, or scale nationally, Jakarta gives you the structure and proximity to do that faster.

If your business involves:

• Working with ministries
• Applying for special licenses (BPOM, Halal, F&B, construction, health)
• Hiring executive-level staff
• Regularly making presentations to institutional investors.

Then Jakarta should be on your short list. Or at the very least, it should be your legal head office, even if operations are spread out.

This isn’t just about playing safe. It’s about building credibility from day one. When your company documents mention Jakarta, banks take you more seriously, clients think you’re established, and regulators find it easier to process your files.

Why Jakarta Works?

• Close to regulators
  Jakarta is home to major government institutions such as BKPM, the Ministry of Trade, and the OSS headquarters. This makes it easier to process licensing, permits, and compliance.
• Deep talent pool
  You’ll find top-tier talent in fields like finance, legal, tech, and corporate strategy. Many expats and bilingual professionals are also based here.
• Infrastructure ready
  The city has no shortage of service offices, coworking spaces, and commercial spaces. This makes the setup smooth, especially for foreign companies.
• Sectoral clustering
  If you’re in fintech, logistics, healthtech, or energy, you’ll find yourself near similar companies, investors, and events.

Each of these factors adds up to something simple: Jakarta doesn’t just support your business establishment, but also supports your long-term business strategy.

Where in Jakarta?

• Sudirman Central Business District / SCBD
  This is Jakarta’s most recognized business district. It’s where the embassies, banks, venture capital firms, and international agencies are. Perfect for legal, finance, and regional headquarters.
• TB Simatupang
  Located in South Jakarta, this zone is a magnet for oil and gas, infrastructure, and pharma companies. It’s quieter, more spacious, and has better highway access.
• Pulogadung and Tanjung Priok
  Industrial estates with strategic locations in Jakarta. Pulogadung is in the east, and Tanjung Priok is in the north, which is located close to the Tanjung Priok container port.
• Not in Jakarta, but not far away: BSD, South Tangerang
  BSD is a planned digital city and one of Indonesia’s most tech-forward zones. It’s great for startups and R&D teams who want high-quality infrastructure without CBD-level costs. It is a developing area with promising commercial potential in the future.

Each zone serves a slightly different purpose, but all are OSS-compatible and business-friendly, which is what matters most for your company registration.

Bali, A Lifestyle Hub Turned Business Launchpad

Entrepreneurs from Europe, Australia, Singapore, and the US are choosing Bali as their company’s base because of the creative energy, operational affordability, and growing infrastructure.

Today, Bali is home to a rising number of registered PT PMAs in sectors like hospitality, water sport activity, accommodation, content creation, ecommerce, and sustainable fashion. For businesses that prioritize global reach, brand identity, and remote operations, Bali isn’t a gimmick, but a legitimate headquarters.

Why Bali Works?

• Strong global appeal
  Bali’s image as a lifestyle destination works to your advantage, especially if you’re in design, F&B, hospitality, or travel.
• Cost-effective setup
  Office rent and staffing are significantly lower than in Jakarta. You can build leaner and scale faster.
• High-quality expat ecosystem
  The island has a steady supply of creative, multilingual, and tech-savvy professionals.
• Work-life balance
  If you’re building a remote-first company or startup studio, Bali offers the environment to stay productive and inspired.

Choosing Bali isn’t just about logistics; it also shapes our team culture, brand message, and long-term creative goals.

Where in Bali?

• Renon (Denpasar)
  This is the most compliant zone for registering a PT PMA. It’s home to many lawyers, notaries, and government offices. Think of it as Bali’s “administrative capital.”
• Sunset Road / Seminyak
  Trendy but business-friendly, this area gives you access to coworking spaces, creative service providers, and digital agencies.
• Canggu
  Known for its remote work scene, Canggu is now attracting e-commerce brands and SaaS startups. Some companies register officially in Denpasar, but operate daily out of this district.
• Jimbaran & South Bali
  Quiet, high-end, and connected to the hospitality and health sectors. This area suits businesses in wellness, retreats, and event production.

As with Jakarta, your choice of location should reflect not just convenience, but the type of company you want to build and the community you want to build it in.

Are other cities not suitable for foreign company registration in Indonesia?

Jakarta and Bali are not the only choices, but they are the most practical for most foreign founders.

Cities like Surabaya, Bandung, or Medan can be worth considering if you’re setting up operations near ports, universities, or regional partners. However, for first-time foreign investors, these cities typically require additional compliance coordination and local network building.

Are you still curious or unsure about registering a foreign company in Indonesia, especially in choosing the right location? Perhaps the option of opening a Representative in Indonesia could be an alternative.