Note: The policy data in this article is sourced from the Enterprise Singapore (EnterpriseSG) website and Budget 2026 announcements, and the information is current as of April 2026. The terms of the grant policy may be adjusted at any time; it is recommended to refer to the latest official announcement before applying.
Indonesia is the largest economy in Southeast Asia, with a population of over 270 million. Its consumer market continues to expand, attracting significant attention from small and medium-sized enterprises (SMEs) in Singapore in recent years. However, entering a new market involves considerable upfront costs, from market research and compliance registration to business establishment.
What many Singaporean companies are unaware of is that the government provides a special subsidy to support overseas expansion, and up to 70% of the costs incurred in entering the Indonesian market can be subsidized.
What is this allowance called?
This is the Market Readiness Assistance Grant (MRA) managed by Enterprise Singapore.
Its core logic is simple: the Singapore government encourages local businesses to go global, and is therefore willing to share some of the costs of entering new markets.
According to the latest adjustments in the 2026 fiscal year budget, the funding ratio for MRA has been increased from 50% to 70% starting April 1, 2026. Each company can apply for a maximum of S$100,000 (approximately RMB 500,000) in funding for each new market it enters.
In what specific places can it be used?
MRA funding is divided into three areas, each corresponding to different market expansion activities:
- Overseas market promotion (maximum S$20,000): Participate in local exhibitions and business trips in Indonesia, or place digital advertisements and translate marketing materials in Indonesia.
- Business expansion and development (maximum S$50,000): Market research, feasibility analysis, business matching (finding distributors and partners), and hiring market consultants to assist in entering the Indonesian market.
- Market registration and establishment (maximum S$30,000): Compliance setup costs incurred in obtaining a business license, registering a company, and leasing office space in Indonesia.
These three types of expenses are precisely the most common expenditure items for Singaporean companies when they first enter Indonesia.
Who can apply? What are the requirements?
The MRA allowance is only available to eligible locally registered companies , with specific requirements as follows (Source: EnterpriseSG website):
- Corporate entities registered and operating in Singapore
- At least 30% of the shares must be held by Singapore citizens or permanent residents (based on the ultimate beneficial owners).
- Belongs to small and medium-sized enterprises: Group annual turnover not exceeding S$100 million, or group number of employees not exceeding 200.
- New target market: The company’s annual sales in Indonesia have not exceeded S$100,000 for the past three years.
If your company is a wholly foreign-owned Singapore-registered entity and no Singapore citizens or permanent residents hold more than 30% of the shares, you are not eligible to apply for this allowance.
Why is entering Indonesia at this time worth serious consideration?
Besides the subsidy policy itself, there are several structural factors in the Indonesian market that also deserve attention:
Indonesia is one of Singapore’s largest trading partners, and the two countries have a comprehensive double taxation avoidance agreement, which significantly reduces the withholding tax rate on cross-border payments such as dividends and interest. At the same time, Indonesia offers full corporate income tax exemptions for up to 20 years for pioneering industries such as manufacturing, new energy, and digital infrastructure; this policy framework has been extended to 2026.
In other words, the initial costs of entering Indonesia can be shared by subsidies from the Singaporean government; and there is also clear room for planning preferential tax structures after entry. The combination of these two factors represents a viable avenue for Singapore to expand into Indonesia.
What should I pay attention to when applying?
The MRA application is submitted online through the Singapore government’s Business Grants Portal, using CorpPass login. Several points require special attention:
- Applications must be submitted before the project begins; applications cannot be submitted retroactively for activities that have already been paid for or contracted.
- Each application can only cover one event and one market. Indonesia and other markets need to be submitted separately.
- The application approval process takes approximately 8 to 12 weeks; it is recommended to plan your time in advance.
It is worth mentioning that MRA can be used in conjunction with another corporate development grant (EDG) – using EDG to support internal capacity building or market entry strategy research, while applying for MRA to cover promotion and implementation costs in Indonesia, the two do not conflict.
In addition, EnterpriseSG has announced that it will launch a new integrated allowance platform (EDGE) in the second half of 2026, which will unify the EDG, MRA, and PSG allowances. Existing application channels will remain open until the new platform is officially launched.
If you are considering bringing your company into the Indonesian market, this government subsidy of up to 70%, capped at S$100,000, is a real policy window that is worth considering during the planning stage.
The prerequisite is that the company must be a Singapore-registered and operating entity with a local shareholding. If the current company structure does not meet the requirements, it is not necessary to completely abandon this path—adjusting the shareholding structure and whether it is necessary to re-establish a qualified operating entity in Singapore are things that can be planned in advance before the official launch.
If you would like to know if your company meets the application requirements, or if you need assistance planning your overall structure for entering Indonesia, please feel free to contact us for further discussion.
