Home Blog What to Consider Before Starting an Online Business in Indonesia Uncategorized What to Consider Before Starting an Online Business in Indonesia InCorp Editorial Team 25 August 2020 4 minutes reading time Table of Contents Starting an Online Business in Indonesia How Cekindo can Assist Many propelling reasons make Indonesia a favourable destination for entrepreneurs to start an online business. These reasons include the maturing digital infrastructure, supportive governmental policies, expanding internet penetration, and rapidly growing population. Particularly for e-commerce, this sector is forecast to dominate the digital industry by 60%. Cekindo is listing out some key considerations before starting an online business in Indonesia. Starting an Online Business in Indonesia 1. Market and Customers Knowing your target market and customers is the most important thing to do when you want to establish a rewarding online business. The online market is filled with so many competitors and that’s why you need to carefully assess the market and customers to ease your entry to this lucrative space. If you have already had an existing business, taking your existing products or services online makes your online venture much easier. However, if you are a new seller, do take the time and necessary resources to study about your products and your customers. When gaining knowledge about your customers, try to be in your customers’ shoes and think about the problems they are encountering. Then, come up with a solution or product that will help counteract their issues. 2. Online Places to Sell Products The online space is full of places that you can choose from to run your business. Be mindful to select the right platform where your desired target customers and audiences are located. The two most popular platforms to sell your products or businesses online are the web stores and e-commerce marketplaces. Popular platforms of web stores in Indonesia are Shopify and Magento; notable online marketplaces in Indonesia are Zalora, Lazada, Qoo10, BliBli, Matahari Mall, JD, and many others. You can operate your business on either of these platforms or sell on both of them. If you are selling on multiple digital platforms, you are looking at generating 190% more revenue. Selling on multiple channels is considered the best option for entrepreneurs in Indonesia to grow their business more quickly. 3. Legal Matters It is rather easy to set up an online business in Indonesia but having a successful online business will require a lot of determination and effort. You must have the proper paperwork in place and adhere to legal requirements. Licenses and Permits It is compulsory to acquire a business license for your online business in Indonesia before you can start selling digitally and legally. Entrepreneurs shall apply for their online business license through the Online Single Submission (OSS) system. Foreign Ownership Foreign investors can own up to 100% shares of an online business they establish with a minimum investment capital of IDR 100 billion. With less than IDR 100 billion investment capital, the maximum foreign ownership is 49%. Patents, Trademarks and Copyrights Don’t get yourself involved in any copyright and infringement issues when you sell online. Don’t take someone else’s work and don’t let anyone take credit for your work as well. Consult a professional for any patent, copyright and trademark matters. Shipping Restrictions Products such as alcohol, perfume, vegetables, and fresh fruits can only be imported to Indonesia with certain restrictions. So you will have to deal with some procedures and paperwork to get them into Indonesia. Read also: New Requirements for Ecommerce Businesses to Take Place in November 2020 How Cekindo can Assist Cekindo has made the process of setting up an online business in Indonesia efficient with simplicity in mind. You do not need in-depth knowledge of the Indonesian customs and laws if you choose us as your partner to establish your Indonesian online business. With Cekindo, you can also seek out the most suitable legal entity and business licenses and permits based on your requirements and budgets. Also, we make sure that your company registration and license application are free from errors that may lead to rejection or delay. Connect with Cekindo now and we will start to help you start your online business in Indonesia right away. It’s really that simple. Fill in the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions How long does it take to set up a PMA company, and how soon can it begin commercial operations? Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process. What needs to be included in an employment background check? These are a few things you need to examine while performing an employee background check: Criminal record Educational background, qualifications, and professional certifications Work and employment history Sexual offense record Alcohol and drug tests Credit and financial background How do foreigners decide on the proper entity in Indonesia? It all depends on your business’s purpose and nature. Our consultants will help you to clear out the matters. How many incorporation types exist in Indonesia? In Indonesia, there are three company types that you can establish based on your business nature, requirements, and preferences. Local Company (PT): 100% local ownership. Foreign Company (PT PMA): can be entirely owned by foreigners; however, restrictions in business sectors apply Representative Office: a branch of the parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized How to Import Raw Materials of Food & Beverages into Indonesia Read more Why Coworking Spaces are Much Better than Local Coffee Shops in Jakarta Read more Recruitment Vietnam: What to Know about Hiring Mid-Level Managers Read more