Indonesia is a land of opportunity. You and I both know that. With its growing economy, strategic location, and abundant natural resources, it’s no wonder businesses from all over the world are flocking here.
But if you’re considering starting a business in Indonesia, let me tell you why incorporating a real estate company under KBLI 68111 (Real Estate Activities with Owned or Leased Property) is one of the smartest moves you can make.
The Booming Real Estate Market in Indonesia
First, let’s talk about the real estate market itself. Indonesia’s population is over 270 million and growing. This means there’s a constant demand for housing, commercial spaces, and industrial properties. Urbanization is on the rise, and cities like Jakarta, Surabaya, and Bali are expanding rapidly. Whether it’s residential developments, office buildings, or retail spaces, the opportunities in real estate are endless.
On top of that, the government is heavily investing in infrastructure projects like toll roads, airports, and seaports. These developments are driving up property values and creating even more opportunities for real estate companies. By incorporating a real estate business, you can tap into this booming market and ride the wave of growth.
Why Incorporate? The Legal and Practical Benefits
Now, you might be wondering, “Why should I incorporate a company instead of just running a business as an individual?” Great question. Incorporating a company in Indonesia, especially under KBLI 68111, comes with several key benefits.
1. Limited Liability Protection
When you incorporate a company, you create a separate legal entity. This means your personal assets are protected if something goes wrong with the business. Under The 2007 Company Law, as amended by the 2023 Jobs Creation Law, shareholders are only liable for the company’s debts up to the amount of their capital contribution. So, if the business faces financial trouble, your personal savings, home, or car won’t be at risk.
2. Easier Access to Financing
Banks and investors are more likely to work with incorporated companies than with individuals. When you incorporate a real estate company, you’ll have access to business loans, credit lines, and investment opportunities that can help you grow your business. Plus, having a formal company structure makes you look more credible and professional in the eyes of potential partners and clients.
3. Risk-Based Licensing Simplifies the Process
One of the best things about incorporating a real estate company in Indonesia right now is the government’s push to simplify business licensing. Thanks to Government Regulation No. 28 of 2025 on the Administration of Risk-Based Business Licensing, the process has become much more streamlined.
Under this regulation, businesses are categorized based on their level of risk. Real estate activities under KBLI 68111 are generally considered medium to low risk, which means you can benefit from a faster and more straightforward licensing process. This regulation is part of the government’s broader effort to attract investment and make Indonesia a more business-friendly environment.
4. Tax Benefits and Incentives
Incorporating a company also opens the door to various tax benefits and incentives. For example, you can deduct business expenses like office rent, employee salaries, and marketing costs from your taxable income. Additionally, the government often provides tax incentives for businesses in certain sectors, including real estate. By incorporating, you can take advantage of these opportunities and reduce your overall tax burden.
5. Professional Image and Credibility
Let’s face it: clients and partners are more likely to trust a company than an individual. When you incorporate a real estate business, you’re showing the world that you’re serious about what you do. This can help you attract high-value clients, secure lucrative deals, and build a strong reputation in the industry.
Understanding KBLI 68111: Real Estate Activities with Owned or Leased Property
Now that we’ve covered the benefits of incorporating, let’s dive into what KBLI 68111 is all about. KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, which is Indonesia’s Standard Industrial Classification. KBLI 68111 specifically refers to real estate activities involving owned or leased property.
This classification covers a wide range of activities, including:
- Buying, selling, and renting out residential, commercial, and industrial properties.
- Managing properties on behalf of clients.
- Developing real estate projects, such as housing complexes, office buildings, and shopping centers.
By incorporating a company under KBLI 68111, you’ll be officially recognized as a real estate business in Indonesia. This not only gives you legal standing but also allows you to operate within the framework of Indonesia’s business regulations.
The Legal Framework: What You Need to Know
Incorporating a real estate company in Indonesia involves complying with several legal requirements. Here’s a quick overview of the key laws and regulations you need to be aware of:
1. The 2007 Company Law, as Amended by the 2023 Jobs Creation Law
This law serves as the foundation for all companies in Indonesia. It outlines the requirements for establishing a company, including the minimum capital, shareholder structure, and corporate governance. The 2023 amendment introduced several changes to make it easier for businesses to incorporate and operate, such as reducing bureaucratic hurdles and simplifying reporting requirements.
2. Government Regulation No. 28 of 2025
This regulation is a game-changer for business licensing in Indonesia. By adopting a risk-based approach, it has significantly reduced the time and effort required to obtain a business license. For real estate companies under KBLI 68111, this means you can get your license faster and start operating sooner.
3. KBLI 68111
As mentioned earlier, this classification is specific to real estate activities. When you incorporate a company under this KBLI, you’ll need to ensure that your business activities align with the classification. This includes registering your company with the appropriate authorities and obtaining the necessary permits.
Steps to Incorporate a Real Estate Company in Indonesia
If you’re ready to take the plunge, your lawyer at Wijaya & Co will secure the following steps to incorporating a real estate company in Indonesia:
- Choose a Company Name. Pick a unique name for your company and your lawyer at Wijaya & Co will check its availability with the Ministry of Law and Human Rights.
- Prepare the Articles of Association. A lawyer at Wijaya & Co will draft your company’s Articles of Association, which outline its purpose, structure, and governance.
- Obtain a Deed of Establishment. Your lawyer will have your Articles of Association notarized by a notary.
- Register with the Ministry of Law and Human Rights. Your lawyer at Wijaya & Co will submit your Deed of Establishment for approval.
- Obtain a Business Identification Number (NIB). This is a business license that your lawyer will retrieve and have it registered to get your NIB.
- Apply for the Necessary Permits. Depending on your business activities, you may need additional permits, such as a location permit or building permit. Your lawyer at Wijaya & Co will secure them for you.
Conclusion: Why Wait?
You and I both know that opportunities don’t wait aroun d forever. With Indonesia’s booming real estate market, simplified licensing processes, and strong legal framework, there’s never been a better time to incorporate a real estate company under KBLI 68111. By taking this step, you’ll not only protect your personal assets but also position yourself for long-term success in one of the most dynamic industries in the country.
So, what are you waiting for? Let’s make your real estate dreams a reality. Incorporate your company today and start building a brighter future for yourself and your business.
My name is Asep Wijaya, writing for Wijaya & Co. We orchestrate to assist you navigate. Thank you for reading my posts.