Indonesia has officially positioned tourism as a strategic national economic...
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For decades, Southeast Asia has been a magnet for European investors seeking growth opportunities in tourism, real estate, and hospitality. In 2025, two countries stand out as the most promising: Indonesia and Thailand. Both offer strong tourism markets, affordable labor, and growing middle classes. Yet, when it comes to legal frameworks for foreign investors, property rights, and long-term security, there are important differences.
This article provides a professional comparison between Indonesia and Thailand to help European investors decide where to allocate their capital in 2025.
Indonesia
Thailand
| Criteria | Indonesia (PT PMA) | Thailand (Leasehold/Nominee) |
| Foreign Land Ownership | No (but PT PMA allows Hak Guna Bangunan – up to 80 yrs) | No (30-yr lease, renewable, condos up to 49%) |
| Company Setup | PT PMA – fully recognized & legal | No direct foreign-owned company for landholding |
| Investment Security | Strong legal basis (BKPM, OSS) | Risky (nominee loopholes, less secure) |
| Corporate Tax | 0.5% in the first 3 years and subsequently 11%-22% depending on the transaction. | 20% |
| Tourism Growth 2025 | +15% annually (Bali, Lombok, Labuan Bajo) | +6–8% annually (Phuket, Samui, Bangkok) |
| Property Prices | More affordable, high growth potential | Higher, saturated market |
| Best For | Long-term investors, Europeans setting up PT PMA | Short-term rental investors, condo buyers |
For European investors, legal certainty is everything. While Thailand offers short-term opportunities, Indonesia provides a clear legal structure through PT PMA, making it easier to operate businesses, own property rights (Hak Guna Bangunan), and remain compliant with tax obligations.
If you are considering to set up company in Bali as foreigner, establishing a PT PMA is the recommended first step toward secure property and business investment.
Both Indonesia and Thailand are attractive in 2025, but Indonesia clearly offers greater legal security, long-term ownership structures, and higher growth potential.
At Indoned Consultancy, we specialize in helping Europeans establish PT PMAs in Bali, Lombok, Labuan Bajo, and Sumba. Contact us today for a free consultation and learn how to start your property investment journey the legal way.
The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.
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