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Indonesia Tax Information

11% PPN

PPN is 11%. PKP registration required above Rp 4.8 billion/year. E-Faktur mandatory.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Indonesia

NPWP
PKP number
Client NPWP
Invoice number
PPN (11%)
e-Faktur
Total in IDR

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

TunaiNet 14Net 30Net 45

Payment Methods in Indonesia

Bank TransferGoPayOVODANAVirtual Account

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Indonesia?

Indonesia has 11% PPN. PPN is 11%. PKP registration required above Rp 4.8 billion/year. E-Faktur mandatory.

What payment methods are common for contractors in Indonesia?

Common payment methods in Indonesia include: Bank Transfer, GoPay, OVO, DANA, Virtual Account. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Indonesia?

Your invoice should include: NPWP, PKP number, Client NPWP, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is PPN rate?

11% as of April 2022, with plans to increase to 12% in 2025.