Opening an e commerce company in indonesia

Opening an E-commerce Company in Indonesia
Jakarta, November 2016

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For further info, visit: www.cekindo.com.
email to: info@cekindo.com, phone: 021-80660999
The Overview
Since the issuing of Presidential Decree No. 44 Year 2016, foreign
investors can now open e-commerce business with 100 percent of full
ownership for foreigners. This condition opens an opportunity for e-
commerce business to fully expand in Indonesia.
In this presentation, we will show you in depth about establishing e-
commerce business in Indonesia. Since there are a lot of things to
comply, you need to pay attention to every detail to welcome this
opportunity.

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DEFINING E-COMMERCE
All online companies, which focus on marketplaces, websites for daily
deals, websites for price- grabber or price finder, online services, and
websites for listing.
UNDERSTANDING THE TREND
The awareness of how important internet for your life have increased
year by year. Implication is also big. In 2016, 40% of Indonesian total
population has internet access. The hype of smartphones and internet
among Indonesian people also boost the sector of online shopping,
which in 2016 alone is expected to double up than last year (up to
US$20 billion). Moreover, for the online retail industry, it contributes up
to 5% of the total economy, compared to only 0.7% in 2015. So, as per
June 1, 2016, the e-commerce sector was no longer in its negative
investment lists.

Which Are Eligible For 100% Foreign Investment
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The Foreign e-commerce
company could be owned by 100%
foreigners if the company invests at
least IDR 100 billion—about US$7.4
million. The companies that invest
less than IDR 100 billion could only
be owned by 49% of foreigners. If
your company invest less than IDR
10 billion but it can open a job
opportunities for at least 1,000 local
people, it can also be owned 100%
by foreign investors.

Important Notes – Restrictions:
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1. Below are types of e-commerce businesses that can be owned by 100% foreigners:
• Reservation websites that make the viewers to reserve a service (a hotel or a
restaurant).
• Web portals that publish contents such as articles, audios, and videos but the
contents are provided or made by the users.
• Marketplace websites that enables the sellers to meet the buyers.
2. Below are types of e-commerce business that cannot be owned by 100%
foreigners (maximum of 49% of foreign ownership):
• Content publishing made by the company itself: websites which published
contents, in the form of written, audios, or videos, but the contents are originally
made by the company.
• Marketplace website with opportunities for the sellers to advertise their products
or services.
• Distribution services websites that allows the company to provide services to
deliver things.

The Types Of E-commerce Business
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There are generally 3 types of e-commerce business in Indonesia.
They are:
• The e-commerce business for customers. This is the fast growing
and the most popular e-commerce business type in Indonesia,
which focusing more on providing the needs of the customers.
• The e-commerce business for business. This type of e-commerce
commonly provides the needs of other businesses.
• The e-commerce business for government. This last type focuses
more on providing the needs of the local, regional, or central
government.

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THE TREND OF E-COMMERCE
BUSINESS SECTORS IN INDONESIA
Currently, the following business sectors are the most popular
one in the e-commerce industry in Indonesia. Almost all of them
are focusing on the e-commerce business for customers. They
include the sectors in apparel or clothing, footwear or shoes,
books, cosmetics, bags, watches, automobile accessories,
airplane tickets, as well as mobile phones or smartphones.
There are also a growing trend in transportation services (like
Uber or Grab), tourism and accommodation, as well as food and
beverages.
Img: pixabay

Regulation For E-commerce Business
With Less Than IDR 100 Billion Investment
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Businesses with the capital of less than IDR 100 billion can still open a
business in Indonesia based on the rule on micro, small, and medium
enterprises, which is stated in the Government Regulation No. 17 Year
2013. However, the ownership of foreigners should be maximum of 49%.
The description is as follows:
• Micro enterprises: Investment of less than IDR 50 million (excluding the
land and the building) with the revenue of IDR 300 million annually.
• Medium enterprises: Investment from IDR 500 million to IDR 10 billion
(excluding the land and the building) with the revenue from IDR 2.5
billion to IDR 50 billion annually.
• Small enterprises: Investment from IDR 50 million to IDR 500 million
(excluding the land and the building) with the revenue from IDR 300
million to IDR 2.5 billion annually.

Establishing E-Commerce Business in Indonesia
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Here are the legal steps of establishing e-commerce business in Indonesia, for both the big
companies or the micro, small, and medium enterprises:
1. REGISTER YOUR COMPANY.
In this process, you need to get the form of a company deed and consult with a notary.
Further, the notary will help you to check the availability of your company name by
accessing the data in the Ministry of Law and Human Rights. Then, the notary will issue
some documents needed for further process of company registration.
2. GET A DOMICILE LETTER.
The letter of domicile can be obtained in the local government where your business is
located.
3. OBTAIN A TAX ID
The domicile letter is also functioned as a requirement document to make a tax card. You
will obtain a tax number (NPWP) and a tax card from the local tax office.

Establishing E-Commerce Business in Indonesia
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4. SUBMIT YOUR APPLICATION ONLINE TO THE MINISTER OF LAW AND HUMAN RIGHTS.
This application is done online and is used to register your company to the Minister of Law and
Human Rights. You need to submit the application with all of the documents stated previously,
plus a bank statement and the statement of your transaction.
5. GETTING SIUP AND TDP
SIUP is a permanent business trading license whereas TDP is the company registration
certificatewhich states that your business has been legally registered by the Ministry of Law and
Human Rights. After you submit all of the requirements and documents, you can get both of
them in the region’s one-stop-service office.
6. REGISTER TO THE MINISTRY OF MANPOWER.
It is done only if your business has more than 10 staff or workers with the minimum salary of
IRD 1 million. By registering your company to the Ministry of Manpower, you have certain
obligations to include your workers to some working insurance and health insurance.
7. SETTING UP YOUR E-COMMERCE BUSINESS LEGALLY.
Having completed all of the legal requirements, you can now start to set up your e-commerce
business legally.

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Our Vision
To be leading consulting firm of business services
to clients expanding and operating in Indonesia.
Our Mission
To provide full-range of market-entry and
corporate services to enable our clients to focus
on their core business and activities in Indonesia
and beyond.
PT. Cekindo Bisnis Grup is a
leading consulting firm of
Market-Entry and Corporate
secretarial services to clients
expanding and operating in
Indonesia and further to
Southeast Asia.
Our Values
Client-focused
Excellence performance
Knowledgable locally
Integrity moral
Normative operations standards
Delivered on-time
One stop services provider
Company Profile

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Our main services:
Business Set
Up
Business
Process
Outsourcing
Local
Representation
 Company
Registration
 License & Product
Registration
 Market Research
& Analysis
 Local Partner
Selection
 Trade Mission
 Land & Property
Ownership
 Recruitment & HR
Establishment
 Payroll
Management
 Accounting & Tax
Reporting
 Visa & Work
Permit
 Mystery Shopping
 Local Distributor
& Partner
 Buying Agent
 Office Space
Cekindo Services

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Senior Advisor
Prof. Dr. Rahardi Ramelan
Relevant Experience
Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup. Hi is a Research Professor at the Agency for the
Assessment and Application of Technology. The honorary degree of Doctor Honoris Causa from Monash
University, Australia and Northeastern University Boston.
 Minister of State for Research and Technology of the Republic of
Indonesia and Chairman of the Agency for Assessment and Application of
Technology (BPPT) in the Seventh Development Cabinet of the Republic
of Indonesia.
 Minister of Industry and Trade in the Development Reforms Cabinet of
the Republic of Indonesia and Chairman of National Logistic Agency.
 Deputy Chairman for Industrial Analysis and Vice Chairman of the
National Development Planning Agency of the Republic of Indonesia
 Several management positions and responsibilities related to Indonesian
Aviation industry, the Weapon industry.
Prof. Dr. Rahardi Ramelan
Profile Overview

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Principal Consultant
Michal Wasserbauer
Michal is currently Principal Consultant at PT Cekindo Bisnis Grup. He has more than 5 year‘s experience in the
Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of
Business Feasibility Studies. He has worked for various industries, namely Grocery and Marchandise Retail,
Energy, Medical Device, Heavy and Automation Industries.
+6281282300584 |  michal.wasserbauer@cekindo.com
Michal Wasserbauer
 Market opportunities valuation
 Investment analysis
 Performance management
 Feasibility studies
 Strategy planning
 Stakeholder management
 Marketing consultancy
Profile Overview
Relevant Experience
Relevant Skills
 Multinational grocery and general merchandise retailer: Capital
Investment Appraisals
 World‘s largest student and recent graduates-run organisation:
Financial Controller
 International consultation company: Market Expansion Consultant

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Principal Consultant
Nurmia Agustina
Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup. She has wide experience in the areas of Business
Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development &
Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change
Management. She has worked for various industries, namely Energy & Resources, Telecommunication, Retail,
Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.
+628119691987 | nurmia.agustina@cekindo.com
 International Management company: Management & Legal
consultant
 Chamber of Commercial: Head of Business Processing Section
Nurmia Dwi Agustina
 Corporate law
 Outsourcing processes
 Company formation
 Acquisitions
 Project Management
 Competitive Analysis
 Business Planning
 Risk Management
 Talent Management Strategy
 Recruitment
 Visa & Work Permit
 Change Management
Relevant Experience
Relevant Skills
Profile Overview

PT. Cekindo Bisnis Grup
Grand Slipi Tower 9th floor
Jl. Letjend. S. Parman Kav 22-24
Jakarta - 11480
Indonesia
 info@cekindo.com
 +6221 80660900

Opening an e commerce company in indonesia

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