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E-Commerce License in Indonesia
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Indonesia is currently facing massive changes with the adoption of economic digitisation. The new Indonesian digital economy system creates a new gate for local and foreign investors to enter the Indonesian market through digital trades.
Local Investors
- Legal Structure: Must establish a Local PT (Perseroan Terbatas)
- Business License: Required to obtain a Surat Izin Usaha Perdagangan melalui Sistem Elektronik (SIUPMSE)
- Tax Identification Number (NPWP): Required for business operations
- Domicile Letter: Must obtain from local government
- Investment Plan Submission: Not typically required
- Compliance with Regulations: Must comply with Indonesian laws, including tax and labor regulations
- PSE License: Required if operating an online platform
- Additional Requirements: May need to register under specific KBLI for e-commerce
Foreign Investors
- Legal Structure: Must establish a PT PMA (Foreign-owned Limited Liability Company)
- Business License: Required to appoint a Foreign Trade Company Representative Office (FTRO PMSE) and obtain SIUPMSE
- Tax Identification Number (NPWP): Required for business operations
- Domicile Letter: Must obtain from local government
- Investment Plan Submission: Required to submit an investment plan to the Investment Coordinating Board (BKPM)
- Compliance with Regulations: Must comply with Indonesian laws, including tax and labor regulations
- PSE License: Required if operating an online platform
- Additional Requirements: Must ensure compliance with additional foreign investment regulations
Types of E-Commerce Businesses in Indonesia
Indonesia has a diverse e-commerce sector, with various business models targeting different customer segments.
- Business-to-Consumer (B2C): The fastest-growing sector which focuses on consumer needs.
- Business-to-Business (B2B): The type of e-commerce business that serves the needs of other businesses.
- Business-to-Government (B2G): Catering to local, regional, and central government needs.
E-Commerce Business Regulations in 2024
Since 2024, launching an e-commerce venture in Indonesia demands compliance with the following prerequisites.
Local and Foreign E-Commerce Organizers (PPMSE)
- Must apply for an E-commerce Trade Business License (SIUPMSE)The application for an E-commerce Trade Business License (SIUPMSE) is mandatory
- Foreign PPMSE companies must set up a representative office to conduct foreign trade.
Local and Foreign E-Commerce Merchants
- Local e-commerce businesses require the proper trade licenses
- E-commerce platforms of local vendors require an SIUPMSE
- Foreign businesses must register their licenses with the local PPMSE
Local and Foreign Intermediary Services Organizers (PSP)
- Those not directly involved in e-commerce transactions as beneficiaries or intermediaries are exempt from obtaining a SIUPMSE
Document Requirements
- Identity and contact details of Company Directors: For Indonesian individuals, KTP, NPWP, email, and phone number. For Foreign Individuals, valid passport, email, and phone number.
- Copy of Deed of Establishment along with Decree Approval from Ministry (SK)
- Copy of Amendment of Article of Association along with Decree Approval from Ministry (if any)
- Username and Password of OSS (Online Single Submission)
- Email and Password used for OSS (Online Single Submission)
- Other required document
Register an E-Commerce License in Indonesia with LMI Consultancy
- Consult your inquiry with our professional consultant
- Submit necessary document
- Proceed with the payment
- Application process
- Receive the complete document
Other Popular Legal Licensing Services in Indonesia
Setup a Business in Indonesia with LMI Consultancy
Established in 2016, LMI Consultancy has been supporting countless individuals in understanding the intricacies of visas, business setup, tax & accounting, and property investment in Indonesia, providing a comprehensive and dependable service.
We take pride in being an ethical and innovative company that places a strong emphasis on exceptional customer service and strives to set a new standard in our industry, guaranteeing a smooth and encouraging experience for our clients.
FAQ
Does my PSE License expire?
Your PSE license remains valid as long as the website and application remain active and unchanged.
What are the consequences of my business operating without a PSE License?
Failure to register your website or application for a PSE License in Indonesia may result in its being blacklisted by the Ministry of Information and Technology.
What additional permits or licenses are necessary to operate an e-commerce business?
ou need to make sure that your Business License also has an E-commerce business license. Other than that, you have to obtain the correct licenses for your specific industry.
Disclaimer : Our services in LMI Consultancy provide consulting services focused on ensuring client compliance with applicable immigration and legal regulations in Indonesia. We do not provide or facilitate the production of official government documents, nor do we offer any expedited or preferential access to government services.
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