Are you a foreign entrepreneur considering launching a business in Indonesia? With its robust economy and vast market potential, Indonesia presents a wealth of opportunities. However, navigating the business landscape can be challenging without a clear understanding of the local regulations. This article will guide you through the essential steps and considerations for starting a business in Indonesia.
Understanding KBLI and OSS When Starting a Business
Doing business in Indonesia as a foreigner requires an entity (PT). PT is the body you will require to run the business - this is where the in flow and out flow of cash comes from. However, before you start running it is very important to know that business activities in Indonesia is regulated and classified into different risk levels by the government. So, two things you need to know at start are KBLI and OSS - the starters.
Like any other countries, the business activity must be defined at start. KBLI is an abbreviation of the "Indonesian Business Field Standard Classification". Each business activity has its own KBLI number. Therefore, it is important for entrepreneurs to know the KBLI number of the business activity to be carried out. By knowing the KBLI, you can find out the terms and conditions for your business that have been determined by the Ministry.
The easiest way to check the terms and conditions of the business you plan to run in Indonesia is through OSS. OSS stands for Online Single Submission, which is a business registration system from BKPM or the Ministry of Investment. The OSS system is a medium for registering business activities. Once registered, OSS will issue the documents / business permits to operate. In the latest OSS version, OSS RBA (Risk Based Approach), the risk level of each business activity (KBLI) is determined by the size of the company and the business scope. Hence, the higher the risk level of the KBLI, the merrier the requirements are and business permit must be issued by the Ministries.
Risk Levels and Requirements
The risk levels of the KBLI are divided into: low, medium low, medium high, and high.
Low: business activities that have a low risk will only require an NIB (Business Identification Number) to operate.
Medium Low and Medium High: OSS will issue NIB and Standard Certificates and further arrangements and requirements will be required for the business to fully operate.
High: business activities that have a high level of risk will get NIB but must process further the requirements to get the permit from the relevant Ministry.
Remember, even after obtaining the necessary business permits, it's essential to comply with the conditions and obligations stipulated by the ministry or government.
Conclusion
Starting a business in Indonesia can be a complex process, but with the right guidance, it's entirely achievable. If you're unsure about the requirements for your business in Indonesia, don't hesitate to seek professional advice. Our consultants are ready to assist you. Reach out to us on WhatsApp: +62 859-3323-1567. Embark on your entrepreneurial journey in Indonesia with confidence.
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