Introduction: The Potential of E-commerce in Indonesia
Indonesia, with its population of approximately 275.77 million people, presents a vast market opportunity for e-commerce. Since 2018, a significant influx of foreign investment companies, known as PT PMA, have been capitalizing on this potential.
The country's large and growing internet user base, coupled with a rapidly developing infrastructure, makes it a fertile ground for e-commerce. The young and tech-savvy population is increasingly turning to online platforms for their shopping needs, further driving the growth of this sector.
Moreover, the Indonesian government has been supportive of the digital economy, implementing policies that encourage digital innovation and entrepreneurship. This favorable environment, combined with the country's robust economic growth, makes Indonesia an attractive destination for e-commerce businesses.
E-commerce Transactions in Indonesia
Based on Ministry of Communication and Informatics (“MOCI”) publications, e-commerce business transaction in 2020 is Rp253 trillion and an increase to Rp337 trillion in 2021. A report released in October 2020 by Google, Temasek and Bain & Company regarding economy in 2020 stated that people spend more time browsing on e-commerce platforms during the pandemic, from previously 3.7 hours/day to 4.7 hours/ the day when the lockdown occurred and became 4.2 hours/day after the lockdown ended.
Choosing Your Products and Understanding KBLI
Before running a business in Indonesia through a PT PMA, you have to decide the products you want to sell. The main reason is because activity and type of products determine the "KBLI" or business classification number. Each KBLI has different risk level classification and requirements that must be fulfilled.
Necessary Licenses for E-commerce Business in Indonesia
To run an e-commerce business in Indonesia, you must have the following licenses:
Business Identification Number (“NIB”);
Electronic System Operator Registration Certificate (“TDPSE) from MOCI; and
Trading Business Permit Through Electronic Systems (“SIUPMSE”) from Ministry of Trade ("MOT").
Conclusion
E-commerce in Indonesia offers a wide range of product categories, from apparel and footwear to books, bags, accessories, household products, airplane tickets, and food and beverages.
However, it's crucial to ensure that the KBLI (business classification number) you select for your PT PMA (foreign investment company) does not have restrictions on foreign ownership. Our team of licensed corporate lawyers in Indonesia can assist you in finding the most suitable KBLI.
We can help incorporate your PT PMA in less than two weeks at an affordable price. Our team is well-versed in corporate regulatory matters and has practical knowledge in running a PT PMA, ensuring a smooth start for your e-commerce business in Indonesia
For any further questions or clarifications, we invite you to reach out to us. Simply click on the WhatsApp button to start a conversation. Remember, there's no downside to seeking more information - we're here to help you navigate your e-commerce journey in Indonesia.
You can also reach us on:
Email: contact@lglbee.com
WhatsApp: +62 859-3323-1567
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